Appointment of an insolvency practitioner

An insolvency practitioner is appointed from a list maintained by the Ministry of Justice, typically on an automated rotation basis.

An insolvency practitioner is appointed from the list of insolvency practitioners maintained by the Ministry of Justice. An insolvency practitioner is appointed for specific insolvency proceedings by the insolvency court. Appointments are most commonly made according to a ‘rotation mechanism’ for the allocation of insolvency cases. This mechanism allocates cases evenly by working through a list ordered according to the date on which insolvency practitioners’ registered offices or establishments are entered in the relevant section of the list of insolvency practitioners. There are two basic versions of the list, based on whether the insolvency practitioner holds an ordinary or a special licence (a special licence is required for economically significant debtors whose annual turnover or number of employees is above a certain level).

However, creditors are free to nominate a specific insolvency practitioner. If they nominate a specific insolvency practitioner in a reorganisation plan submitted before the insolvency proceedings are opened, the insolvency court appoints that practitioner regardless of his current ranking in the rotation mechanism. Another option is to vote for the removal of the existing insolvency practitioner at the first creditors’ meeting and replace them with another specific practitioner.

There is also the non-routine possibility (which must only be used in exceptional and justified cases) for an insolvency court to appoint an insolvency practitioner outside the rotation mechanism where this is necessary after taking into account the current state of insolvency proceedings, the debtor and their assets, and the professional competence, experience and workload of the insolvency practitioner.

Insolvency practitioners are excluded from insolvency proceedings if, in view of their relationship with the case or the parties, there is reason to doubt their impartiality. An insolvency practitioner registered in the list of insolvency practitioners may refuse an appointment only if they have compelling reasons to do so.

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