Part 1Bankruptcy

Effect of bankruptcy restrictions orders and undertakings

5Orders relating to disqualification

After section 71A of the 1985 Act, insert—

71BDisqualification provisions: power to make orders

1

The Scottish Ministers may make an order under this section in relation to a disqualification provision.

2

A “disqualification provision” is a provision made by or under any enactment which disqualifies (whether permanently or temporarily and whether absolutely or conditionally) a relevant debtor or a class of relevant debtors from—

a

being elected or appointed to an office or position;

b

holding an office or position; or

c

becoming or remaining a member of a body or group.

3

In subsection (2) above, the reference to a provision which disqualifies a person conditionally includes a reference to a provision which enables him to be dismissed.

4

An order under subsection (1) above may repeal or revoke the disqualification provision.

5

An order under subsection (1) above may amend, or modify the effect of, the disqualification provision—

a

so as to reduce the class of relevant debtors to whom the disqualification provision applies;

b

so as to extend the disqualification provision to some or all individuals who are subject to a bankruptcy restrictions order;

c

so that the disqualification provision applies only to some or all individuals who are subject to a bankruptcy restrictions order;

d

so as to make the application of the disqualification provision wholly or partly subject to the discretion of a specified person, body or group.

6

An order by virtue of subsection (5)(d) above may provide for a discretion to be subject to—

a

the approval of a specified person or body;

b

appeal to a specified person, body, court or tribunal.

7

The Scottish Ministers may be specified for the purposes of subsection (5)(d) or (6)(a) or (b) above.

8

In this section—

  • bankruptcy restrictions order” includes—

    1. a

      a bankruptcy restrictions undertaking;

    2. b

      a bankruptcy restrictions order made under paragraph 1 of Schedule 4A to the Insolvency Act 1986 (c. 45); and

    3. c

      a bankruptcy restrictions undertaking entered into under paragraph 7 of that Schedule;

  • relevant debtor” means a debtor—

    1. a

      whose estate has been sequestrated;

    2. b

      who has granted (or on whose behalf there has been granted) a trust deed;

    3. c

      who has been adjudged bankrupt by a court in England and Wales or in Northern Ireland; or

    4. d

      who, in England and Wales or in Northern Ireland, has made an agreement with his creditors for a composition in satisfaction of his debts or a scheme of arrangement of his affairs or for some other kind of settlement or arrangement.

9

An order under this section—

a

may make provision generally or for a specified purpose only;

b

may make different provision for different purposes; and

c

may make transitional, consequential or incidental provision.

10

An order under this section—

a

shall be made by statutory instrument; and

b

shall not be made unless a draft has been laid before and approved by a resolution of the Scottish Parliament.