- Latest available (Revised)
- Original (As made)
There are currently no known outstanding effects for the The Insolvency (Northern Ireland) Order 2005, Section 7.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
7.—(1) The following shall be inserted after Article 150 of the 1989 Order (winding up: preferential debt)—
150A.—(1) This Article applies where a floating charge relates to property of a company—
(a)which has gone into liquidation,
(b)which is in administration,
(c)of which there is a provisional liquidator, or
(d)of which there is a receiver.
(2) The liquidator, administrator or receiver—
(a)shall make a prescribed part of the company's net property available for the satisfaction of unsecured debts, and
(b)shall not distribute that part to the proprietor of a floating charge except in so far as it exceeds the amount required for the satisfaction of unsecured debts.
(3) Paragraph (2) shall not apply to a company if—
(a)the company's net property is less than the prescribed minimum, and
(b)the liquidator, administrator or receiver thinks that the cost of making a distribution to unsecured creditors would be disproportionate to the benefits.
(4) Paragraph (2) shall also not apply to a company if or in so far as it is disapplied by—
(a)a voluntary arrangement in respect of the company, or
(b)a compromise or arrangement agreed under Article 418 of the Companies Order (compromise with creditors and members).
(5) Paragraph (2) shall also not apply to a company if—
(a)the liquidator, administrator or receiver applies to the High Court for an order under this paragraph on the ground that the cost of making a distribution to unsecured creditors would be disproportionate to the benefits, and
(b)the Court orders that paragraph (2) shall not apply.
(6) In paragraphs (2) and (3) a company's net property is the amount of its property which would, but for this Article, be available for satisfaction of claims of holders of debentures secured by, or holders of, any floating charge created by the company.
(7) An order under paragraph (2) prescribing part of a company's net property may, in particular, provide for its calculation—
(a)as a percentage of the company's net property, or
(b)as an aggregate of different percentages of different parts of the company's net property.
(8) An order under this Article shall be subject to negative resolution.
(9) In this Article—
“floating charge” means a charge which is a floating charge on its creation and which is created after the first order under paragraph (2)(a) comes into operation, and
“prescribed” means prescribed by order by the Department.
(10) An order under this Article may include transitional or incidental provision.”.
(2) In Article 2(2) of the 1989 Order (general interpretation), in paragraph (b) in the definition of “prescribed” after “sub-paragraph (a)” there shall be inserted “ in Article 150A(9) ”.
Commencement Information
I1Art. 7 wholly in operation at 27.3.2006, see art. 1(3) and S.R. 2006/21, art. 2 (subject to S.R. 2006/22, arts. 2-7)
The Whole Order you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Order you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Order you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Explanatory Memorandum sets out a brief statement of the purpose of a Northern Ireland Order in Council and provides information about its policy objective and policy implications. They aim to make the Order accessible to readers who are not legally qualified and accompany any Northern Ireland Order in Council made since 2002.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: