The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments) (Insolvency and Company Directors Disqualification) Regulations 2015

Statutory Instruments

2015 No. 1651

Insolvency

Companies

The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments) (Insolvency and Company Directors Disqualification) Regulations 2015

Made

1st September 2015

Laid before Parliament

8th September 2015

Coming into force

1st October 2015

The Secretary of State, in exercise of the powers conferred by section 159(1) and (2) of the Small Business, Enterprise and Employment Act 2015(1), makes the following Regulations:

Citation and commencement

1.—(1) These Regulations may be cited as the Small Business, Enterprise and Employment Act 2015 (Consequential Amendments) (Insolvency and Company Directors Disqualification) Regulations 2015.

(2) Subject to paragraph (3) these Regulations come into force on 1st October 2015.

(3) Regulation 6 comes into force immediately after the coming into force of the Deregulation Act 2015 (Insolvency) (Consequential Amendments and Transitional and Savings Provisions) Order 2015(2).

Consequential amendments to secondary legislation

2.—(1) The Insolvent Companies (Disqualification of Unfit Directors) Proceedings Rules 1987(3) are amended as follows.

(2) For rule 1(3)(c)(ii) substitute: “by the Secretary of State under section 5A (disqualification for certain convictions abroad), 8 (disqualification of director on finding of unfitness), 8ZB (Application for order under section 8ZA) or 8ZD (order disqualifying person instructing unfit director: other cases) of that Act;”.

(3) In rule 1(3)(e)(ii)—

(a) after “section” insert “5A,”;

(b) after “8,” insert “8ZA, 8ZC, 8ZD, 8ZE,”.

(4) In rule 4(b)(i) after “7” insert “or 8ZB”.

(5) In rule 4(b)(ii)—

(a) after “section” insert “5A,”;

(b) after “8” insert “, 8ZD,”.

3.—(1) The Insolvent Companies (Disqualification of Unfit Directors) Proceedings Rules (Northern Ireland) 2003(4) are amended as follows.

(2) For Rule 1(3)(b) substitute: “by the Department under Article 8A (disqualification for certain convictions abroad), Article 11 (disqualification of director on finding of unfitness), Article 11B (application for order under Article 11A) or Article 11D (order disqualifying persons instructing unfit director: other cases) of that Order, or”.

(3) In Rule 4(b)(i) after “10” insert “or 11B”.

(4) In Rule 4(b)(ii) for “11” substitute “8A, 11, 11D”.

4.—(1) The Companies (Disqualification Orders) Regulations 2009(5) (“the 2009 Regulations”) are amended as follows.

(2) In Regulation 2(1)—

(a) for the definition of “disqualification order” substitute: ““disqualification order” means an order of the court under any of sections 2 to 5, 5A, 6, 8, 8ZA, 8ZD, 9A and 10 of the Act;”; and

(b) for the definition of “disqualification undertaking”, substitute ““disqualification undertaking” means an undertaking accepted by the Secretary of State under section 5A, 7, 8, 8ZC, 8ZE or 9B of the Act;”.

(3) For form DQ01 in Schedule 1 to the 2009 Regulations substitute form DQ01 as set out in Part 1 of Schedule 1 to these Regulations.

(4) For form DQ02 in Schedule 2 to the 2009 Regulations substitute form DQ02 as set out in Part 2 of Schedule 1 to these Regulations.

5.—(1) The Companies (Disqualification Orders) Regulations (Northern Ireland) 2010(6) (“the 2010 Regulations”) are amended as follows.

(2) In article 2—

(a) for the definition of “disqualification order” substitute “disqualification order” means an order of the court under any of Articles 5 to 8, 8A, 9, 11, 11A, 11D, 13A and 14 of the Order;”; and

(b) for the definition of “disqualification undertaking” substitute “disqualification undertaking” means an undertaking accepted by the Department under Article 8A, 10, 11, 11C, 11E or 13B of the Order”.

(3) For form DQ01n in Schedule 1 to the 2010 Regulations substitute form DQ01n as set out in Part 1 of Schedule 2 to these Regulations.

(4) For form DQ02n in Schedule 2 to the 2010 Regulations substitute form DQ02n as set out in Part 2 of Schedule 2 to these Regulations.

6.  In the Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013(7), in Schedule 2 (co-ownership schemes: application of the Insolvency Act 1986 and the Insolvency (Northern Ireland) Order 1989), in Part 3 (table of applied provisions of the Insolvency Act 1986) after the entry for section 390 insert—

“Sections 390A to 391T (qualification and regulation of insolvency practitioners)

In these sections a reference to a company is to be read without modification by this Schedule.”

Anna Soubry

Minister of State for Small Business, Industry and Enterprise

Department for Business, Innovation and Skills

1st September 2015

SCHEDULES

Regulation 4(3) and (4)

SCHEDULE 1

PART 1 DQ01

Disqualification order against an individual

PART 2 DQ02

Disqualification order against a corporate body or firm

Regulation 5(3) and (4)

SCHEDULE 2

PART 1 DQ01n

Disqualification order against an individual in Northern Ireland

PART 2 DQ02n

Disqualification Order against a corporate body in Northern Ireland

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make amendments to secondary legislation in consequence of the commencement of sections 104 to 116 and 137 to 146 of the Small Business, Enterprise and Employment Act 2015 (“the Act”).

In consequence of the commencement of sections 104 to 116 of the Act, regulation 2 of and Schedule 1 make amendments to secondary legislation (in both Great Britain and Northern Ireland) relating to the procedure for the disqualification under the Company Directors Disqualification Act 1986(c.46), which gives specified courts power to make a disqualification order against a person and the Secretary of State power to accept a disqualification undertaking. In particular there are amendments to the forms specified to be used by certain court officers so as to include in the form DQ01 (used when a disqualification order is made against an individual) reference to new section 5A, 8ZB and 8ZD of the Company Directors Disqualification Act 1986 and so as to include reference to them in form DQ02 (used when a disqualification order is made against a corporate body or firm). Similar amendments are made to such forms used in Northern Ireland.

In consequence of sections 137 to 146 of the Act regulation 6 makes amendment to secondary legislation relating to collective investment scheme.

A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.

(1)

2015 c. 26.

(2)

S.I. 2015/1641. This Order makes amendments to secondary legislation in consequence of section 17 of the Deregulation Act 2015 (c.20), which substitutes section 391 of the Insolvency Act 1986 (c.45). Section 137 of the Small Business, Enterprise and Employment Act 2015 substitutes section 391 of the Insolvency Act 1986 as substituted by section 17 of the Deregulation Act 2015.

(3)

S.I. 1987/2023; relevant amending instruments are S.I. 2003/1367 and 2007/1906.

(4)

S.I. 2003/358 (N.I.); amended by 2005/517 (N.I.). There are other amending instruments but none is relevant.

(5)

S.I. 2009/2471.

(6)

S.I. 2010/184 (N.I.).

(7)

S.I. 2013/1388 2013; amended by S.I. 2015/1641.