What is the 10,10,10 rule in Insolvency?

The 10,10,10 rule applies when creditor would like a physical meeting to occur for their views to be represented rather than a virtual meeting or deemed consent in insolvency decision processes, this can be used in such matters such as creditors voluntary liquidation. For a physical meeting to take place there Must be:

• at least 10% of creditors in value must be represented,
• at least 10 creditors must be involved in the process,
• 10% of the total number of creditors.

Where is this role located in legislation?

This rule was brought into effect the Small Business, Enterprise and Employment Act 2015, located in section 122 and in the Insolvency Act 1986 section 246ZE.

Why did this Legislative change occur?

Due to modern changes and the ability to communicate, physical meetings for decision making purposes were becoming more unlikely, therefore the Insolvency act Section 246E and Section 379ZA saw a change in the requirement for a physical meeting. Applying this change a physical meeting can be requested within five business days and with the 10,10,10 rule listed above.