1.1 Name

These Rules are the AIFC Preferential Creditor Rules 2019 (or PCR).

1.2 Commencement

These Rules commence on 14 February 2019.

1.3 Legislative authority

These Rules are adopted by the Board of Directors of the AFSA under section 181 (Power to adopt rules etc.) of the AIFC Companies Regulations.

Note: Section 66(2) of the AIFC Insolvency Regulations provides that those Rules may make provision for or in relation to designating certain types of claim on a Company as preferential debts and to prescribing any priorities for their payment and as to the ranking of other claims.

1.4 Application of these Rules

These Rules apply within the jurisdiction of the AIFC.

1.5 These Rules apply to all Insolvency Proceedings

These Rules apply to all Insolvency Proceedings in relation to a Company, whether they commenced before the commencement of these Rules or the Relevant Date for the Company is a date that occurred before the commencement of these Rules.

1.6 Definitions etc.

1.6.1 Schedule 1 (Interpretation) contains definitions used in these Rules.

1.6.2 Terms used in these Rules (other than terms defined in Schedule 1) have the same meanings as they have, from time to time, in the AIFC Insolvency Regulations, or the relevant provisions of those Regulations, unless the contrary intention appears.

Note: For definitions in the AIFC Insolvency Regulations applying to these Rules, see Schedule 3 of those Regulations. The definitions in that Schedule relevant to these Rules include the following:

• Administrative Receiver

• Administrator

• AFSA

• AIFC

• Company

• Court

• Goes into Liquidation

• Insolvency

• Provisional Liquidator

• Receiver

• Registrar of Companies

• Resolution for Voluntary Winding Up

• Rules.

1.6.3 Subject to subrule 1.6.2, terms used in these Rules (other than terms defined in Schedule 1 or the AIFC Insolvency Regulations) have the same meanings as they have, from time to time, in the AIFC Companies Regulations, or the relevant provisions of those Regulations, unless the contrary intention appears.

Note: For definitions in the AIFC Companies Regulations applying to these Rules, see Schedule 1 of those Regulations. The definitions in that Schedule relevant to these Rules include the following:

• Director

• Secretary

1.7 Administration of these Rules

These Rules are administered by the Registrar of Companies.