Draft Order laid before Parliament under section 72H of the Insolvency Act 1986 for approval by resolution of each House of Parliament
Draft Statutory Instruments
INSOLVENCY
COMPANIES
Made
2003
Laid before Parliament
2003
Coming into force in accordance with Article 1
Whereas a draft of this Order has been approved by a resolution of each House of Parliament pursuant to section 72H of the Insolvency Act 1986(1).
Now therefore the Secretary of State, in exercise of the power conferred on her by section 72H of the Insolvency Act 1986, hereby makes the following Order:—
1. This Order may be cited as the Insolvency Act 1986 (Amendment) (Administrative Receivership and Urban Regeneration etc.) Order 2003 and shall come into force immediately after the insertion into the Insolvency Act 1986 of sections 72A to 72G and Schedule 2A has effect(2).
2. Chapter IV of Part III of the Insolvency Act 1986 is amended by—
(a)the substitution in section 72A(6) of the words “sections 72B to 72GA” for the words “sections 72B to 72G”;
(b)the insertion after section 72D of—
72DA—(1) Section 72A does not prevent the appointment of an administrative receiver of a project company of a project which—
(a)is designed wholly or mainly to develop land which at the commencement of the project is wholly or partly in a designated disadvantaged area outside Northern Ireland, and
(b)includes step-in rights.
(2) In subsection (1) “develop” means to carry out—
(a)building operations,
(b)any operation for the removal of substances or waste from land and the levelling of the surface of the land, or
(c)engineering operations in connection with the activities mentioned in paragraph (a) or (b).
(3) In this section—
“building” includes any structure or erection, and any part of a building as so defined, but does not include plant and machinery comprised in a building,
“building operations” includes—
demolition of buildings,
filling in of trenches,
rebuilding,
structural alterations of, or additions to, buildings and
other operations normally undertaken by a person carrying on business as a builder,
“designated disadvantaged area” means an area designated as a disadvantaged area under section 92 of the Finance Act 2001(3),
“engineering operations” includes the formation and laying out of means of access to highways,
“project company” has the meaning given by paragraph 7 of Schedule 2A,
“step-in rights” has the meaning given by paragraph 6 of that Schedule,
“substance” means any natural or artificial substance whether in solid or liquid form or in the form of a gas or vapour, and
“waste” includes any waste materials, spoil, refuse or other matter deposited on land.” and
(c)by the insertion after 72G of—
72GA Section 72A does not prevent the appointment of an administrative receiver of—
(a)a company holding an appointment under Chapter I of Part II of the Water Industry Act 1991(4),
(b)a protected railway company within the meaning of section 59 of the Railways Act 1993(5) (including that section as it has effect by virtue of section 19 of the Channel Tunnel Rail Link Act 1996(6), or
(c)a licence company within the meaning of section 26 of the Transport Act 2000(7).”.
Parliamentary Under-Secretary of State for Competition, Consumers and Markets,
Department of Trade and Industry
2003
(This note is not part of the Order)
This Order inserts into the Insolvency Act 1986 new exceptions to the prohibition contained in section 72A against appointing an administrative receiver in respect of a company. A new exception is created in relation to companies engaged in urban regeneration projects. (See new section 72DA inserted by Article 2). A further exception (in new section 72GA as inserted by Article 2) is created to permit the appointment of an administrative receiver in relation to companies holding appointments under Chapter I of Part II of the Water Industry Act 1991, protected railway companies within section 59 of the Railways Act 1993 (as extended by the Channel Tunnel Rail Link Act 1996) and a licence company within the meaning of section 26 of the Transport Act 2000.
A regulatory impact assessment identifying the costs of the insolvency provisions of the Enterprise Act 2002 to business and the exchequer was published at the time the Act received Royal Assent in November 2002. It is available from www.dti.gov.uk/enterpriseact/rias.htm. The assessment deals with the areas covered by this Order.
1986 c. 45; section 72H was inserted into the Insolvency Act 1986 by section 250 of the Enterprise Act 2002 (c. 40).
Sections 72A to 72G and Schedule 2A are prospectively inserted into the Insolvency Act 1986 by section 250 of, and Schedule 18 to, the Enterprise Act 2002.