Scottish Law Commission recommends reform of moveable transactions law
The Scottish Law Commission today publishes its report recommending reform of moveable transactions law in Scotland.
The report is the culmination of one of the most complex projects ever undertaken by the commission.
Moveable transactions law enables businesses and individuals to use their moveable property to access finance. It is a crucial part of commercial law. For example:
For example, Scotland is home to many intellectual property enterprises in the food and drink, oil and gas, renewable technologies, IT, life sciences and creative sectors. It is difficult under the current law for such enterprises to raise working capital by using their intellectual property as security for a loan.
The main recommendations are:
“It rests on Victorian legislation and disparate court decisions. There are many gaps and uncertainties. Scotland has fallen considerably behind modern international standards in this area. Our recommendations provide for a new statutory scheme fit for the needs of business in Scotland in the twenty-first century.”