Demystifying Ancillary Winding-Up: Disapplying Local Substantive and Procedural Rules

Abstract

The Scottish decision in Morris (Liquidator of Bank of Credit & Commerce International), Re Petition of The Bank of England is correct that an ancillary winding-up makes good sense and may disapply local procedural rules that do not serve any practical purpose. Owing to a misunderstanding of the English authorities and the principle of pari passu distribution, the Scottish court wrongly concluded that local substantive rules may not be disapplied.