http://www.legislation.gov.uk/id/ukpga/1986/45

C120 C18F1SCHEDULE A1 Moratorium where directors propose voluntary arrangement

Annotations:

Amendments (Textual)

F1

Sch. A1 inserted (11.5.2001 so far as is necessary to give effect to Sch. A1 paras. 5, 45(1)-(3)(5) and 1.1.2003 in so far as not already in force) by 2000 c. 39, s. 1, Sch. 1 para. 4; S.I. 2001/1751, art. 2; S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)

Modifications etc. (not altering text)

C120

Sch. A1 applied (with modifications) (E.W.) (1.1.2003) by The Insolvent Partnerships Order 1994 (S.I. 1994/2421), art. 4(1), Sch. 1 (as amended (1.1.2003) by S.I. 2002/2708, arts. 4-6 (with transitional provisions in art. 11); (1.7.2005) by S.I. 2005/1516, art. 6); (6.4.2017) by S.I. 2017/540, reg. 1, Sch. 2 para. 5 (with reg. 4))

C18

Sch. A1 extended (24.6.2003) by The Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations 2003 (S.I. 2003/1633), regs. 1, 15, Sch. 2 para. 7

Part I Introductory

Interpretation

F21

In this Schedule—

“the beginning of the moratorium” has the meaning given by paragraph 8(1),
“the date of filing” means the date on which the documents for the time being referred to in paragraph 7(1) are filed or lodged with the court,
“hire-purchase agreement” includes a conditional sale agreement, a chattel leasing agreement and a retention of title agreement,
“market contract” and “market charge” have the meanings given by Part VII of the M1Companies Act 1989,
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“moratorium” means a moratorium under section 1A,
“the nominee” includes any person for the time being carrying out the functions of a nominee under this Schedule,
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“the settlement finality regulations” means the M2Financial Markets and Insolvency (Settlement Finality) Regulations 1999,
“system-charge” has the meaning given by the M3Financial Markets and Insolvency Regulations 1996.

Eligible companies

F42

1

A company is eligible for a moratorium if it meets the requirements of paragraph 3, unless—

a

it is excluded from being eligible by virtue of paragraph 4, or

b

it falls within sub-paragraph (2).

2

A company falls within this sub-paragraph if—

F5a

it effects or carries out contracts of insurance, but is not exempt from the general prohibition, within the meaning of section 19 of the Financial Services and Markets Act 2000, in relation to that activity,

b

it has permission under Part IV of that Act to accept deposits,

bb

it has a liability in respect of a deposit which it accepted in accordance with the Banking Act 1979 (c. 37) or 1987 (c. 22),

c

it is a party to a market contract F6. . . or any of its property is subject to a market charge F6. . . or a system-charge, or

d

it is a participant (within the meaning of the settlement finality regulations) or any of its property is subject to a collateral security charge (within the meaning of those regulations).

F73

Paragraphs (a), (b) and (bb) of sub-paragraph (2) must be read with—

a

section 22 of the Financial Services and Markets Act 2000;

b

any relevant order under that section; and

c

Schedule 2 to that Act.

Expressions used in this paragraph that are defined expressions in Part 15 of the Companies Act 2006 (accounts and reports) have the same meaning in this paragraph as in that Part.

includes step-in rights.

F154CLiability under an arrangement

1

A company is also excluded from being eligible for a moratorium if, on the date of filing, it has incurred a liability under an agreement of £10 million or more.

2

Where the liability in sub-paragraph (1) is a contingent liability under or by virtue of a guarantee or an indemnity or security provided on behalf of another person, the amount of that liability is the full amount of the liability in relation to which the guarantee, indemnity or security is provided.

3

In this paragraph—

a

the reference to “liability” includes a present or future liability whether, in either case, it is certain or contingent,

b

the reference to “liability” includes a reference to a liability to be paid wholly or partly in foreign currency (in which case the sterling equivalent shall be calculated as at the time when the liability is incurred).

F164DInterpretation of capital market arrangement

1

For the purposes of paragraph 4A an arrangement is a capital market arrangement if—

a

it involves a grant of security to a person holding it as trustee for a person who holds a capital market investment issued by a party to the arrangement, or

b

at least one party guarantees the performance of obligations of another party, or

c

at least one party provides security in respect of the performance of obligations of another party, or

d

the arrangement involves an investment of a kind described in articles 83 to 85 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (options, futures and contracts for differences).

2

For the purposes of sub-paragraph (1)—

a

a reference to holding as trustee includes a reference to holding as nominee or agent,

b

a reference to holding for a person who holds a capital market investment includes a reference to holding for a number of persons at least one of whom holds a capital market investment, and

c

a person holds a capital market investment if he has a legal or beneficial interest in it.

3

In paragraph 4A, 4C, 4J and this paragraph—

“agreement” includes an agreement or undertaking effected by—
1. a
  contract,
2. b
  deed, or
3. c
  any other instrument intended to have effect in accordance with the law of England and Wales, Scotland or another jurisdiction, and
“party” to an arrangement includes a party to an agreement which—
1. a
  forms part of the arrangement,
2. b
  provides for the raising of finance as part of the arrangement, or
3. c
  is necessary for the purposes of implementing the arrangement.

F174ECapital market investment

1

For the purposes of paragraphs 4A and 4D, an investment is a capital market investment if—

a

it is within article 77 F188or 77A of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (debt instruments) and

b

it is rated, listed or traded or designed to be rated, listed or traded.

2

In sub-paragraph (1)—

“listed” means admitted to the official list within the meaning given by section 103(1) of the Financial Services and Markets Act 2000 (c. 8) (interpretation),
“rated” means rated for the purposes of investment by an internationally recognised rating agency,
“traded” means admitted to trading on a market established under the rules of a recognised investment exchange or on a foreign market.

3

In sub-paragraph (2)—

“foreign market” has the same meaning as “relevant market” in article 67(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (S.I. 2001/1335) (foreign markets),
“recognised investment exchange” has the meaning given by section 285 of the Financial Services and Markets Act 2000 (recognised investment exchange).

F184F

1

For the purposes of paragraphs 4A and 4D an investment is also a capital market investment if it consists of a bond or commercial paper issued to one or more of the following—

a

an investment professional within the meaning of article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001,

b

a person who is, when the agreement mentioned in paragraph 4A is entered into, a certified high net worth individual in relation to a communication within the meaning of article 48(2) of that order,

c

a person to whom article 49(2) of that order applies (high net worth company, &c.),

d

a person who is, when the agreement mentioned in paragraph 4A is entered into, a certified sophisticated investor in relation to a communication within the meaning of article 50(1) of that order, and

e

a person in a State other than the United Kingdom who under the law of that State is not prohibited from investing in bonds or commercial paper.

2

For the purposes of sub-paragraph (1)—

a

in applying article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 for the purposes of sub-paragraph (1)(a)—

i

in article 19(5)(b), ignore the words after “exempt person”,

ii

c

it is one of a number of companies which together carry out the project,

d

it has the purpose of supplying finance to enable the project to be carried out, or

e

it is the holding company of a company within any of paragraphs (a) to (d).

2

But a company is not a “project company” of a project if—

a

it performs a function within sub-paragraph (1)(a) to (d) or is within sub-paragraph (1)(e), but

b

it also performs a function which is not—

i

within sub-paragraph (1)(a) to (d),

ii

related to a function within sub-paragraph (1)(a) to (d), or

iii

related to the project.

3

For the purposes of this paragraph a company carries out all or part of a project whether or not it acts wholly or partly through agents.

for the purpose of the application of paragraph 4B to a specified case.

F224JStep-in rights

1

For the purposes of paragraph 4B a project has “step-in rights” if a person who provides finance in connection with the project has a conditional entitlement under an agreement to—

i

assume sole or principal responsibility under an agreement for carrying out all or part of the project, or

ii

make arrangements for carrying out all or part of the project.

2

In sub-paragraph (1) a reference to the provision of finance includes a reference to the provision of an indemnity.

F234K“Person”

For the purposes of paragraphs 4A to 4J, a reference to a person includes a reference to a partnership or another unincorporated group of persons.

F245

The Secretary of State may by regulations modify the qualifications for eligibility of a company for a moratorium.

Part II Obtaining a moratorium

Nominee’s statement

6

1

Where the directors of a company wish to obtain a moratorium, they shall submit to the nominee—

a

a document setting out the terms of the proposed voluntary arrangement,

b

a statement of the company’s affairs containing—

i

such particulars of its creditors and of its debts and other liabilities and of its assets as may be prescribed, and

ii

such other information as may be prescribed, and

c

any other information necessary to enable the nominee to comply with sub-paragraph (2) which he requests from them.

2

The nominee shall submit to the directors a statement in the prescribed form indicating whether or not, in his opinion—

a

the proposed voluntary arrangement has a reasonable prospect of being approved and implemented,

b

the company is likely to have sufficient funds available to it during the proposed moratorium to enable it to carry on its business, and

F268c

the proposed voluntary arrangement should be considered by a meeting of the company and by the company's creditors.

3

In forming his opinion on the matters mentioned in sub-paragraph (2), the nominee is entitled to rely on the information submitted to him under sub-paragraph (1) unless he has reason to doubt its accuracy.

4

The reference in sub-paragraph (2)(b) to the company’s business is to that business as the company proposes to carry it on during the moratorium.

Documents to be submitted to court

7

1

To obtain a moratorium the directors of a company must file (in Scotland, lodge) with the court—

a

a document setting out the terms of the proposed voluntary arrangement,

b

a statement of the company’s affairs containing—

i

such particulars of its creditors and of its debts and other liabilities and of its assets as may be prescribed, and

ii

such other information as may be prescribed,

c

a statement that the company is eligible for a moratorium,

d

a statement from the nominee that he has given his consent to act, and

e

a statement from the nominee that, in his opinion—

i

the proposed voluntary arrangement has a reasonable prospect of being approved and implemented,

ii

the company is likely to have sufficient funds available to it during the proposed moratorium to enable it to carry on its business, and

F281iii

the proposed voluntary arrangement should be considered by a meeting of the company and by the company's creditors.

2

Each of the statements mentioned in sub-paragraph (1)(b) to (e), except so far as it contains the particulars referred to in paragraph (b)(i), must be in the prescribed form.

3

The reference in sub-paragraph (1)(e)(ii) to the company’s business is to that business as the company proposes to carry it on during the moratorium.

4

The Secretary of State may by regulations modify the requirements of this paragraph as to the documents required to be filed (in Scotland, lodged) with the court in order to obtain a moratorium.

Duration of moratorium

8

1

A moratorium comes into force when the documents for the time being referred to in paragraph 7(1) are filed or lodged with the court and references in this Schedule to “the beginning of the moratorium” shall be construed accordingly.

F2992

A moratorium ends with the later of—

a

the day on which the company meeting summoned under paragraph 29 is first held, and

b

the day on which the company's creditors decide whether to approve the proposed voluntary arrangement,

unless it is extended under paragraph 32; but this is subject to the rest of this paragraph.

3

In this paragraph the “initial period” means the period of 28 days beginning with the day on which the moratorium comes into force.

3A

If the company meeting has not first met before the end of the initial period the moratorium ends at the end of that period, unless before the end of that period it is extended under paragraph 32.

3B

If the company's creditors have not decided whether to approve the proposed voluntary arrangement before the end of the initial period the moratorium ends at the end of that period, unless before the end of that period—

a

the moratorium is extended under paragraph 32, or

b

a meeting of the company's creditors is summoned in accordance with section 246ZE.

3C

Where sub-paragraph (3B)(b) applies, the moratorium ends with the day on which the meeting of the company's creditors is first held, unless it is extended under paragraph 32.

4

The moratorium ends at the end of the initial period if the nominee has not before the end of that period—

a

summoned a meeting of the company, and

b

sought a decision from the company's creditors,

as required by paragraph 29(1).

5

If the moratorium is extended (or further extended) under paragraph 32, it ends at the end of the day to which it is extended (or further extended).

6

Sub-paragraphs (2) to (5) do not apply if the moratorium comes to an end before the time concerned by virtue of—

a

paragraph 25(4) (effect of withdrawal by nominee of consent to act),

b

an order under paragraph 26(3), 27(3) or 40 (challenge of actions of nominee or directors), or

F385c

a decision of one or both of—

i

the meeting of the company summoned under paragraph 29, or

ii

the company's creditors.

7

If the moratorium has not previously come to an end in accordance with sub-paragraphs (2) to (6), it ends at the end of the day on which a decision under paragraph 31 to approve a voluntary arrangement takes effect under paragraph 36.

8

The Secretary of State may by order increase or reduce the period for the time being specified in sub-paragraph (3).

Notification of beginning of moratorium

9

1

When a moratorium comes into force, the directors shall notify the nominee of that fact forthwith.

2

If the directors without reasonable excuse fail to comply with sub-paragraph (1), each of them is liable to imprisonment or a fine, or both.

10

1

When a moratorium comes into force, the nominee shall, in accordance with the rules—

a

advertise that fact forthwith, and

b

notify the registrar of companies, the company and any petitioning creditor of the company of whose claim he is aware of that fact.

2

In sub-paragraph (1)(b), “petitioning creditor” means a creditor by whom a winding-up petition has been presented before the beginning of the moratorium, as long as the petition has not been dismissed or withdrawn.

3

If the nominee without reasonable excuse fails to comply with sub-paragraph (1)(a) or (b), he is liable to a fine.

Notification of end of moratorium

11

1

When a moratorium comes to an end, the nominee shall, in accordance with the rules—

a

advertise that fact forthwith, and

b

notify the court, the registrar of companies, the company and any creditor of the company of whose claim he is aware of that fact.

2

If the nominee without reasonable excuse fails to comply with sub-paragraph (1)(a) or (b), he is liable to a fine.

F25Part III Effects of moratorium

Annotations:

Amendments (Textual)

F25

Sch. A1 (Pts. I-VI) inserted (11.5.2001 so far as is necessary to give effect to Sch. A1 para. 5, 45(1)-(3)(5) and 1.1.2003 in so far as not already in force) by 2000 c. 39, s. 1, Sch. 1 para. 4; S.I. 2001/1751, art. 2; S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)

Effect on creditors, etc.

F2612

1

During the period for which a moratorium is in force for a company—

a

no petition may be presented for the winding up of the company,

b

no meeting of the company may be called or requisitioned except with the consent of the nominee or the leave of the court and subject (where the court gives leave) to such terms as the court may impose,

c

no resolution may be passed or order made for the winding up of the company,

F27d

no administration application may be made in respect of the company,

da

no administrator of the company may be appointed under paragraph 14 or 22 of Schedule B1,

e

no administrative receiver of the company may be appointed,

f

no landlord or other person to whom rent is payable may exercise any right of forfeiture by peaceable re-entry in relation to premises let to the company in respect of a failure by the company to comply with any term or condition of its tenancy of such premises, except with the leave of the court and subject to such terms as the court may impose,

C19 C104g

no other steps may be taken to enforce any security over the company’s property, or to repossess goods in the company’s possession under any hire-purchase agreement, except with the leave of the court and subject to such terms as the court may impose, and

h

no other proceedings and no execution or other legal process may be commenced or continued, and no distress may be levied, against the company or its property except with the leave of the court and subject to such terms as the court may impose.

2

Where a petition, other than an excepted petition, for the winding up of the company has been presented before the beginning of the moratorium, section 127 shall not apply in relation to any disposition of property, transfer of shares or alteration in status made during the moratorium or at a time mentioned in paragraph 37(5)(a).

3

In the application of sub-paragraph (1)(h) to Scotland, the reference to execution being commenced or continued includes a reference to diligence being carried out or continued, and the reference to distress being levied is omitted.

4

Paragraph (a) of sub-paragraph (1) does not apply to an excepted petition and, where such a petition has been presented before the beginning of the moratorium or is presented during the moratorium, paragraphs (b) and (c) of that sub-paragraph do not apply in relation to proceedings on the petition.

5

For the purposes of this paragraph, “excepted petition” means a petition under—

a

section 124A F129or 124B of this Act,

b

section 72 of the M4Financial Services Act 1986 on the ground mentioned in subsection (1)(b) of that section, or

c

section 92 of the M5Banking Act 1987 on the ground mentioned in subsection (1)(b) of that section.

F28d

section 367 of the Financial Services and Markets Act 2000 on the ground mentioned in subsection (3)(b) of that section.

C113

b

if any officer of the company authorised or permitted the contravention, without reasonable excuse, he is liable to imprisonment or a fine, or both.

Paragraph 20 does not apply in relation to any property which is subject to a market charge, F39. . . a system-charge or a collateral security charge.

6

In this paragraph, “transfer order”, “collateral security” and “collateral security charge” have the same meanings as in the settlement finality regulations.

Part IV Nominees

Monitoring of company’s activities

F4024

Where there are reasonable grounds for believing that—

a

as a result of any act, omission or decision of the nominee during the moratorium, the company has suffered loss, but

b

the company does not intend to pursue any claim it may have against the nominee,

any creditor of the company may apply to the court.

2

An application under sub-paragraph (1) may be made during the moratorium or after it has ended.

3

On an application under sub-paragraph (1) the court may—

a

order the company to pursue any claim against the nominee,

b

authorise any creditor to pursue such a claim in the name of the company, or

c

make such other order with respect to such a claim as it thinks fit,

unless the court is satisfied that the act, omission or decision of the nominee was in all the circumstances reasonable.

4

An order under sub-paragraph (3) may (among other things)—

a

impose conditions on any authority given to pursue a claim,

b

direct the company to assist in the pursuit of a claim,

c

make directions with respect to the distribution of anything received as a result of the pursuit of a claim,

d

bring the moratorium to an end and make such consequential provision as the court thinks fit.

5

On an application under sub-paragraph (1) the court shall have regard to the interests of the members and creditors of the company generally.

Replacement of nominee by court

28

1

The court may—

a

on an application made by the directors in a case where the nominee has failed to comply with any duty imposed on him under this Schedule or has died, or

b

on an application made by the directors or the nominee in a case where it is impracticable or inappropriate for the nominee to continue to act as such,

direct that the nominee be replaced as such by another person qualified to act as an insolvency practitioner, F229... in relation to the voluntary arrangement.

2

A person may only be appointed as a replacement nominee under this paragraph if he submits to the court a statement indicating his consent to act.

Part V Consideration and implementation of voluntary arrangement

F320Duty to summon company meeting and seek creditors' decision

Annotations:

Amendments (Textual)

F320

Words in Sch. A1 para. 29 heading substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 9(6); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)

29

1

Where a moratorium is in force, the nominee F340shall—

a

summon a meeting of the company to consider the proposed voluntary arrangement for such a time, date (within the period of time for the time being specified in paragraph 8(3)) and place as he thinks fit, and

b

seek a decision from the company's creditors as to whether they approve the proposed voluntary arrangement.

F2942

The decision of the company's creditors is to be made by a qualifying decision procedure.

3

Notice of the qualifying decision procedure must be given to every creditor of the company of whose claim the nominee is aware.

Conduct of F209company meeting and qualifying decision procedure

Annotations:

Amendments (Textual)

F209

Words in Sch. A1 para. 30 heading substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 9(9); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)

30

1

Subject to the provisions of paragraphs 31 to 35, the F383company meeting summoned under paragraph 29 and the qualifying decision procedure instigated under that paragraph shall be conducted in accordance with the rules.

2

F302The company meeting summoned under paragraph 29 may resolve that it be adjourned (or further adjourned).

3

After the conclusion of F349the company meeting in accordance with the rules, the chairman of the meeting shall report the result of the meeting to the court, and, immediately after reporting to the court, shall give notice of the result of the meeting to such persons as may be prescribed.

F2174

After the company's creditors have decided whether to approve the proposed voluntary arrangement the nominee must—

a

report the decision to the court, and

b

immediately after reporting to the court, give notice of the decision to such persons as may be prescribed.

Approval of voluntary arrangement

33

1

The conditions which may be imposed when a moratorium is extended (or further extended) include a requirement that the nominee be replaced as such by another person qualified to act as an insolvency practitionerF325... in relation to the voluntary arrangement.

2

A person may only be appointed as a replacement nominee by virtue of sub-paragraph (1) if he submits to the court a statement indicating his consent to act.

3

F311Where it is proposed to appoint a replacement nominee as a condition of extending (or further extending) the moratorium—

a

the duty imposed by paragraph 32(3)(b) on the nominee shall instead be imposed on the person proposed as the replacement nominee, and

b

paragraphs 32(4) and (5) and 36(1)(e) apply as if the references to the nominee were to that person.

F4434

1

If a decision to extend, or further extend, the moratorium takes effect under paragraph 36, the nominee shall, in accordance with the rules, notify the registrar of companies and the court.

2

If the moratorium is extended, or further extended, by virtue of an order under paragraph 36(5), the nominee shall, in accordance with the rules, send F185a copy of the order to the registrar of companies.

3

If the nominee without reasonable excuse fails to comply with this paragraph, he is liable to a fine.

Moratorium committee

i

was entitled to vote F271in the qualifying decision procedure by which the creditors' decision to approve the voluntary arrangement was made, or

ii

would have been so entitled if he had had notice of it,

as if he were a party to the voluntary arrangement.

3

If—

a

when the arrangement ceases to have effect any amount payable under the arrangement to a person bound by virtue of sub-paragraph (2)(b)(ii) has not been paid, and

b

the arrangement did not come to an end prematurely,

in the case of a person who was not given notice of the F412relevant qualifying decision procedure, after the end of the period of 28 days beginning with the day on which he became aware that F424the relevant qualifying decision procedure had taken place,

by virtue of the approval of the arrangement, on the nominee, or

b

make an order appointing a person who is qualified to act as an insolvency practitionerF342... in relation to the voluntary arrangement, either in substitution for the existing supervisor or to fill a vacancy.

7

The power conferred by sub-paragraph (6) is exercisable so as to increase the number of persons exercising the functions of supervisor or, where there is more than one person exercising those functions, so as to replace one or more of those persons.

Part VI Miscellaneous

F119a

the appointment of an administrator has effect in relation to the company and that appointment was in pursuance of—

i

an administration application made, or

ii

a notice of intention to appoint filed,

before the moratorium came into force, or

b

the company is being wound up in pursuance of a petition presented before the moratorium came into force.

8

No application for an order under this paragraph may be made by a creditor or member of the company; but such an application may be made instead by the administrator or (as the case may be) the liquidator.

Offences

commits an offence.

8

A person guilty of an offence under this paragraph is liable to imprisonment or a fine, or both.

9

The money sums specified in paragraphs (a) and (b) of sub-paragraph (4) are subject to increase or reduction by order under section 417A in Part XV.

F4742

1

If, for the purpose of obtaining a moratorium, or an extension of a moratorium, for a company, a person who is an officer of the company—

a

makes any false representation, or

b

fraudulently does, or omits to do, anything,

he commits an offence.

2

Sub-paragraph (1) applies even if no moratorium or extension is obtained.

3

For the purposes of this paragraph, “officer” includes a shadow director.

4

A person guilty of an offence under this paragraph is liable to imprisonment or a fine, or both.

Void provisions in floating charge documents

F4843

1

A provision in an instrument creating a floating charge is void if it provides for—

a

obtaining a moratorium, or

b

anything done with a view to obtaining a moratorium (including any preliminary decision or investigation),

to be an event causing the floating charge to crystallise or causing restrictions which would not otherwise apply to be imposed on the disposal of property by the company or a ground for the appointment of a receiver.

2

In sub-paragraph (1), “receiver” includes a manager and a person who is appointed both receiver and manager.

Functions of the F211Financial Conduct Authority and Prudential Regulation Authority

Annotations:

Amendments (Textual)

F211

Words in Sch. A1 para. 44 cross-heading substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 54(16) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

44

1

This Schedule has effect in relation to a moratorium for a regulated company with the modifications in sub-paragraphs (2) to (16) below.

2

Any notice or other document required by virtue of this Schedule to be sent to a creditor of a regulated company must also be sent to the F238appropriate regulator.

3

The F238appropriate regulator is entitled to be heard on any application to the court for leave under paragraph 20(2) or 20(3) (disposal of charged property, etc.).

4

Where paragraph 26(1) (challenge of nominee’s actions, etc.) applies, the persons who may apply to the court include the F238appropriate regulator.

5

If a person other than F292a regulator applies to the court under that paragraph, F265the appropriate regulator is entitled to be heard on the application.

6

Where paragraph 27(1) (challenge of nominee’s actions, etc.) applies, the persons who may apply to the court include the F362appropriate regulator.

7

If a person other than F310a regulator applies to the court under that paragraph, F334the appropriate regulator is entitled to be heard on the application.

F2968

The appropriate regulator must be given notice of any qualifying decision procedure by which a decision of the company's creditors is sought for the purposes of this Schedule.

8A

The appropriate regulator, or a person appointed by the appropriate regulator, may in the way provided for by the rules participate in (but not vote in) any qualifying decision procedure by which a decision of the company's creditors is sought for the purposes of this Schedule.

9

A person appointed for the purpose by the F317appropriate regulator is entitled to attend and participate in (but not to vote at)—

F370a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

any meeting of a committee established under paragraph 35 (moratorium committee).

10

The F317appropriate regulator is entitled to be heard on any application under paragraph 36(3) (effectiveness of decisions).

11

Where paragraph 38(1) (challenge of decisions) applies, the persons who may apply to the court include the F317appropriate regulator.

12

If a person other than F396a regulator applies to the court under that paragraph, F350the appropriate regulator is entitled to be heard on the application.

13

Where paragraph 39(3) (implementation of voluntary arrangement) applies, the persons who may apply to the court include the F377appropriate regulator.

14

If a person other than F358a regulator applies to the court under that paragraph, F305the appropriate regulator is entitled to be heard on the application.

15

Where paragraph 40(2) (challenge of directors’ actions) applies, the persons who may apply to the court include the F421appropriate regulator.

16

If a person other than F351a regulator applies to the court under that paragraph, F389the appropriate regulator is entitled to be heard on the application.

F23616A

If either regulator makes an application to the court under any of the provisions mentioned in sub-paragraphs (5), (7), (12), (14) or (16) in relation to a PRA-regulated company, the other regulator is entitled to be heard on the application.

17

This paragraph does not prejudice any right the F391appropriate regulator has (apart from this paragraph) as a creditor of a regulated company.

F24817A

The appropriate regulator” means—

a

for the purposes of sub-paragraphs (2) to (8) and (10) to (17)—

i

where the regulated company is a PRA-regulated company, each of the Financial Conduct Authority and the Prudential Regulation Authority, and

ii

in any other case, the Financial Conduct Authority;

b

for the purposes of F304sub-paragraphs (8A) and (9)—

i

where the regulated company is a PRA-regulated company, the Financial Conduct Authority or the Prudential Regulation Authority, and

ii

in any other case, the Financial Conduct Authority.

18

In this paragraph—

F333“PRA-authorised person” has the meaning given by section 2B(5) of the Financial Services and Markets Act 2000;
“PRA-regulated company” means a regulated company which—
1. a
  is, or has been, a PRA-authorised person,
2. b
  is, or has been, an appointed representative within the meaning given by section 39 of the the Financial Services and Markets Act 2000, whose principal (or one of whose principals) is, or was, a PRA-authorised person, or
3. c
  is carrying on, or has carried on, a PRA-regulated activity in contravention of the general prohibition;
“regulated company” means a company which—
1. a
  is, or has been, an authorised person within the meaning given by section 31 of the M6Financial Services and Markets Act 2000,
2. b
  is, or has been, an appointed representative within the meaning given by section 39 of that Act, or
3. c
  is carrying on, or has carried on, a regulated activity, within the meaning given by section 22 of that Act, in contravention of the general prohibition within the meaning given by section 19 of that Act.
F200“regulator” means the Financial Conduct Authority or the Prudential Regulation Authority.

Subordinate legislation

F4945

1

Regulations or an order made by the Secretary of State under this Schedule may make different provision for different cases.

2

Regulations so made may make such consequential, incidental, supplemental and transitional provision as may appear to the Secretary of State necessary or expedient.

3

Any power of the Secretary of State to make regulations under this Schedule may be exercised by amending or repealing any enactment contained in this Act (including one contained in this Schedule) or contained in the M7Company Directors Disqualification Act 1986.

4

Regulations (except regulations under paragraph 5) or an order made by the Secretary of State under this Schedule shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

5

Regulations under paragraph 5 of this Schedule are to be made by statutory instrument and shall only be made if a draft containing the regulations has been laid before and approved by resolution of each House of Parliament.

C117 C116 C25 C112 C113F50SCHEDULE B1 ADMINISTRATION

Annotations:

Amendments (Textual)

F50

Sch. B1 inserted (15.9.2003) by 2002 c. 40, ss. 248(2), 279, Sch. 16 (with s. 249(1)-(3)(6)); S.I. 2003/2093, art. 2(1), Sch. 1 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))

Modifications etc. (not altering text)

C117

Pt. 2 (including Sch. B1) applied (with modifications) (1.12.1994) by The Insolvent Partnerships Order 1994 (S.I. 1994/2421), art. 6(1), Sch. 2 (as amended (1.7.2005) by S.I. 2005/1516, art. 7, Sch. 1; (1.4.2013) by S.I. 2013/472, Sch. 2 para. 11(b)); (1.1.2015) by S.I. 2014/3486, arts. 1(2), 13 (with art. 3); (6.4.2017) by S.I. 2017/540, reg. 1, Sch. 2 para. 6 (with reg. 4); (19.12.2018) by S.I. 2018/1244, arts. 1(2), 19(2)(3) (with art. 3)); and (28.12.2020) (temp.) by S.I. 2020/1350, regs. 1(4), 121(3))

C116

Pt. 2 (including Sch. B1) applied (with modifications) (1.2.2011) by The Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) Order 2010 (S.I. 2010/3023), art. 2, Sch. (with art. 6) (as amended (1.4.2013) by S.I. 2013/472, Sch. 2 para. 195(c); and (7.4.2017) by S.I. 2017/400, regs. 1(2), 9)

C25

Sch. B1 applied in part (with modifications) (5.10.2004) by Energy Act 2004 (c. 20), ss. 159(1), 198, Sch. 20 Pts. 1-3; S.I. 2004/2575, art. 2(1), Sch. 1

C112

Pt. 2 (including Sch. B1) applied (with modifications) (6.4.2014) by The Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) Order 2014 (S.I. 2014/229), art. 2(2), Sch. 1 (as renamed (1.8.2014) by S.I. 2014/1815, Sch. para 33; and as amended (1.8.2014) by S.I. 2014/1822, art. 5; and (13.3.2018) by S.I. 2018/208, regs. 1(3), 15(3)(b))

C113

Sch. B1 applied in part (with modifications) (1.10.2011) by Postal Services Act 2011 (c. 5), ss. 73, 93(2)(3), Sch. 10 Pts. 1, 2; S.I. 2011/2329, art. 3 (with arts. 4, 5) (as amended (6.4.2017) by S.I. 2017/540, reg. 1, Sch. 1 para. 6(2) (with reg. 4))

ARRANGEMENT OF SCHEDULE

Nature of administration	Paragraphs 1 to 9
Appointment of administrator by court	Paragraphs 10 to 13
Appointment of administrator by holder of floating charge	Paragraphs 14 to 21
Appointment of administrator by company or directors	Paragraphs 22 to 34
Administration application: special cases	Paragraphs 35 to 39
Effect of administration	Paragraphs 40 to 45
Process of administration	Paragraphs 46 to 58
Functions of administrator	Paragraphs 59 to 75
Ending administration	Paragraphs 76 to 86
Replacing administrator	Paragraphs 87 to 99
General	Paragraphs 100 to 116

NATURE OF ADMINISTRATION

1Administration

1

For the purposes of this Act “administrator” of a company means a person appointed under this Schedule to manage the company’s affairs, business and property.

2

For the purposes of this Act—

a

a company is “in administration” while the appointment of an administrator of the company has effect,

b

a company “enters administration” when the appointment of an administrator takes effect,

c

a company ceases to be in administration when the appointment of an administrator of the company ceases to have effect in accordance with this Schedule, and

d

a company does not cease to be in administration merely because an administrator vacates office (by reason of resignation, death or otherwise) or is removed from office.

2

A person may be appointed as administrator of a company—

a

by administration order of the court under paragraph 10,

b

by the holder of a floating charge under paragraph 14, or

c

by the company or its directors under paragraph 22.

A person may not be appointed as administrator of a company which is in administration (subject to the provisions of paragraphs 90 to 97 and 100 to 103 about replacement and additional administrators).

8

1

A person may not be appointed as administrator of a company which is in liquidation by virtue of—

a

a resolution for voluntary winding up, or

b

a winding-up order.

2

Sub-paragraph (1)(a) is subject to paragraph 38.

3

Sub-paragraph (1)(b) is subject to paragraphs 37 and 38.

9

1

A person may not be appointed as administrator of a company which—

a

has a liability in respect of a deposit which it accepted in accordance with the Banking Act 1979 (c. 37) or 1987 (c. 22), but

b

is not an authorised deposit taker.

2

d

the F120designated officer for a magistrates’ court in the exercise of the power conferred by section 87A of the Magistrates’ Courts Act 1980 (c. 43) (fine imposed on company), or

e

a combination of persons listed in paragraphs (a) to (d).

2

As soon as is reasonably practicable after the making of an administration application the applicant shall notify—

a

any person who has appointed an administrative receiver of the company,

b

any person who is or may be entitled to appoint an administrative receiver of the company,

c

any person who is or may be entitled to appoint an administrator of the company under paragraph 14, and

d

such other persons as may be prescribed.

3

An administration application may not be withdrawn without the permission of the court.

4

In sub-paragraph (1) “creditor” includes a contingent creditor and a prospective creditor.

F1155

Sub-paragraph (1) is without prejudice to section 7(4)(b).

by charges and other forms of security which together relate to the whole or substantially the whole of the company’s property and at least one of which is a qualifying floating charge.

an administrative receiver of the company is in office.

shall notify the administrator and such other persons as may be prescribed as soon as is reasonably practicable after the requirements of paragraph 18 are satisfied, and

b

commits an offence if he fails without reasonable excuse to comply with paragraph (a).

21Invalid appointment: indemnity

1

This paragraph applies where—

a

a person purports to appoint an administrator under paragraph 14, and

b

the appointment is discovered to be invalid.

2

The court may order the person who purported to make the appointment to indemnify the person appointed against liability which arises solely by reason of the appointment’s invalidity.

the arrangement was made during a moratorium for the company under Schedule A1, and

b

the arrangement ends prematurely (within the meaning of section 7B).

3

While this paragraph applies, an administrator of the company may not be appointed under paragraph 22.

25

An administrator of a company may not be appointed under paragraph 22 if—

a

a petition for the winding up of the company has been presented and is not yet disposed of,

b

an administration application has been made and is not yet disposed of, or

c

an administrative receiver of the company is in office.

F25325A

1

Paragraph 25(a) does not prevent the appointment of an administrator of a company if the petition for the winding up of the company was presented after the person proposing to make the appointment filed the notice of intention to appoint with the court under paragraph 27.

2

But sub-paragraph (1) does not apply if the petition was presented under a provision mentioned in paragraph 42(4).

26Notice of intention to appoint

1

A person who proposes to make an appointment under paragraph 22 shall give at least five business days’ written notice to—

a

any person who is or may be entitled to appoint an administrative receiver of the company, and

b

any person who is or may be entitled to appoint an administrator of the company under paragraph 14.

2

A person who F330gives notice of intention to appoint under sub-paragraph (1) shall also give such notice as may be prescribed to such other persons as may be prescribed.

3

A notice under this paragraph must—

a

identify the proposed administrator, and

b

be in the prescribed form.

1

An appointment may not be made under paragraph 22 unless the person who makes the appointment has complied with any requirement of paragraphs 26 and 27 and—

a

the period of notice specified in paragraph 26(1) has expired, or

b

each person to whom notice has been given under paragraph 26(1) has consented in writing to the making of the appointment.

2

An appointment may not be made under paragraph 22 after the period of ten business days beginning with the date on which the notice of intention to appoint is filed under paragraph 27(1).

This paragraph applies where—

a

an administration application in respect of a company is made by a person who is not the holder of a qualifying floating charge in respect of the company’s property, and

b

the holder of a qualifying floating charge in respect of the company’s property applies to the court to have a specified person appointed as administrator (and not the person specified by the administration applicant).

2

The court shall grant an application under sub-paragraph (1)(b) unless the court thinks it right to refuse the application because of the particular circumstances of the case.

37Application where company in liquidation

1

This paragraph applies where the holder of a qualifying floating charge in respect of a company’s property could appoint an administrator under paragraph 14 but for paragraph 8(1)(b).

2

The holder of the qualifying floating charge may make an administration application.

3

If the court makes an administration order on hearing an application made by virtue of sub-paragraph (2)—

a

the court shall discharge the winding-up order,

b

the court shall make provision for such matters as may be prescribed,

c

the court may make other consequential provision,

d

the court shall specify which of the powers under this Schedule are to be exercisable by the administrator, and

e

this Schedule shall have effect with such modifications as the court may specify.

38

1

The liquidator of a company may make an administration application.

2

If the court makes an administration order on hearing an application made by virtue of sub-paragraph (1)—

a

the court shall discharge any winding-up order in respect of the company,

b

the court shall make provision for such matters as may be prescribed,

c

the court may make other consequential provision,

d

the court shall specify which of the powers under this Schedule are to be exercisable by the administrator, and

e

this Schedule shall have effect with such modifications as the court may specify.

39Effect of administrative receivership

C4241Dismissal of administrative or other receiver

1

When an administration order takes effect in respect of a company any administrative receiver of the company shall vacate office.

C212

Where a company is in administration, any receiver of part of the company’s property shall vacate office if the administrator requires him to.

3

Where an administrative receiver or receiver vacates office under sub-paragraph (1) or (2)—

a

his remuneration shall be charged on and paid out of any property of the company which was in his custody or under his control immediately before he vacated office, and

b

he need not take any further steps under section 40 or 59.

4

In the application of sub-paragraph (3)(a)—

a

“remuneration” includes expenses properly incurred and any indemnity to which the administrative receiver or receiver is entitled out of the assets of the company,

b

the charge imposed takes priority over security held by the person by whom or on whose behalf the administrative receiver or receiver was appointed, and

c

the provision for payment is subject to paragraph 43.

C43 C4442Moratorium on insolvency proceedings

1

This paragraph applies to a company in administration.

2

No resolution may be passed for the winding up of the company.

3

No order may be made for the winding up of the company.

4

Sub-paragraph (3) does not apply to an order made on a petition presented under—

a

section 124A (public interest), or

F131aa

section 124B (SEs),

b

section 367 of the Financial Services and Markets Act 2000 (c. 8) (petition by F219Financial Conduct Authority or Prudential Regulation Authority).

5

If a petition presented under a provision referred to in sub-paragraph (4) comes to the attention of the administrator, he shall apply to the court for directions under paragraph 63.

d

the carrying out by an administrative receiver (whenever appointed) of his functions.

an order form,

be in the prescribed form.

9

An administrator commits an offence if he fails without reasonable excuse to comply with a requirement of this paragraph.

C4947Statement of company’s affairs

1

As soon as is reasonably practicable after appointment the administrator of a company shall by notice in the prescribed form require one or more relevant persons to provide the administrator with a statement of the affairs of the company.

2

The statement must—

a

be verified by a statement of truth in accordance with Civil Procedure Rules,

b

be in the prescribed form,

c

give particulars of the company’s property, debts and liabilities,

d

give the names and addresses of the company’s creditors,

e

specify the security held by each creditor,

f

give the date on which each security was granted, and

g

contain such other information as may be prescribed.

3

In sub-paragraph (1) “relevant person” means—

a

a person who is or has been an officer of the company,

b

a person who took part in the formation of the company during the period of one year ending with the date on which the company enters administration,

c

a person employed by the company during that period, and

d

a person who is or has been during that period an officer or employee of a company which is or has been during that year an officer of the company.

4

For the purpose of sub-paragraph (3) a reference to employment is a reference to employment through a contract of employment or a contract for services.

5

In Scotland, a statement of affairs under sub-paragraph (1) must be a statutory declaration made in accordance with the Statutory Declarations Act 1835 (c. 62) (and sub-paragraph (2)(a) shall not apply).

C5048

1

A person required to submit a statement of affairs must do so before the end of the period of 11 days beginning with the day on which he receives notice of the requirement.

2

The administrator may—

a

revoke a requirement under paragraph 47(1), or

b

extend the period specified in sub-paragraph (1) (whether before or after expiry).

3

If the administrator refuses a request to act under sub-paragraph (2)—

a

the person whose request is refused may apply to the court, and

b

the court may take action of a kind specified in sub-paragraph (2).

4

A person commits an offence if he fails without reasonable excuse to comply with a requirement under paragraph 47(1).

An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (5).

8

A period specified in this paragraph may be varied in accordance with paragraph 107.

F35350

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C5251F244Consideration of administrator's proposals by creditors

F2411

The administrator must seek a decision from the company's creditors as to whether they approve the proposals set out in the statement made under paragraph 49(1).

2

The initial decision date for that decision must be within the period of 10 weeks beginning with the day on which the company enters administration.

3

The “initial decision date” for that decision—

a

if the decision is initially sought using the deemed consent procedure, is the date on which a decision will be made if the creditors by that procedure approve the proposals, and

b

if the decision is initially sought using a qualifying decision procedure, is the date on or before which a decision will be made if it is made by that qualifying decision procedure (assuming that date does not change after the procedure is instigated).

4

A period specified in this paragraph may be varied in accordance with paragraph 107.

5

An administrator commits an offence if he fails without reasonable excuse to comply with a requirement of this paragraph.

C5352

1

Paragraph 51(1) shall not apply where the statement of proposals states that the administrator thinks—

a

that the company has sufficient property to enable each creditor of the company to be paid in full,

b

that the company has insufficient property to enable a distribution to be made to unsecured creditors other than by virtue of section 176A(2)(a), or

c

that neither of the objectives specified in paragraph 3(1)(a) and (b) can be achieved.

2

But the administrator shall F316seek a decision from the company's creditors as to whether they approve the proposals set out in the statement made under paragraph 49(1) if requested to do so —

a

by creditors of the company whose debts amount to at least 10% of the total debts of the company,

b

in the prescribed manner, and

c

in the prescribed period.

F2013

Where a decision is sought by virtue of sub-paragraph (2) the initial decision date (as defined in paragraph 51(3)) must be within the prescribed period.

4

The period prescribed under sub-paragraph (3) may be varied in accordance with paragraph 107.

C5453F263Creditors' decision

F4181

The company's creditors may approve the administrator's proposals—

a

without modification, or

b

with modification to which the administrator consents.

2

F290The administrator shall as soon as is reasonably practicable report any decision taken F282by the company's creditors to—

a

the court,

b

the registrar of companies, and

c

such other persons as may be prescribed.

3

An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (2).

such other persons as may be prescribed.

7

An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (6).

C5655Failure to obtain approval of administrator’s proposals

F2731

This paragraph applies where an administrator—

a

reports to the court under paragraph 53 that a company's creditors have failed to approve the administrator's proposals, or

b

reports to the court under paragraph 54 that a company's creditors have failed to approve a revision of the administrator's proposals.

2

The court may—

a

provide that the appointment of an administrator shall cease to have effect from a specified time;

b

adjourn the hearing conditionally or unconditionally;

c

make an interim order;

d

make an order on a petition for winding up suspended by virtue of paragraph 40(1)(b);

e

make any other order (including an order making consequential provision) that the court thinks appropriate.

C5756Further creditors’ F355decisions

1

The administrator of a company shall F344seek a decision from the company's creditors on a matter if—

a

it is requested in the prescribed manner by creditors of the company whose debts amount to at least 10% of the total debts of the company, or

b

he is directed by the court to F346do so.

2

An administrator commits an offence if he fails without reasonable excuse to F251seek a decision from the company's creditors on a matter as required by this paragraph.

C5857Creditors’ committee

1

F430The company's creditors may, in accordance with the rules, establish a creditors’ committee.

2

A creditors’ committee shall carry out functions conferred on it by or under this Act.

3

A creditors’ committee may require the administrator—

a

to attend on the committee at any reasonable time of which he is given at least seven days’ notice, and

b

to provide the committee with information about the exercise of his functions.

F24558

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

FUNCTIONS OF ADMINISTRATOR

C5959General powers

1

The administrator of a company may do anything necessary or expedient for the management of the affairs, business and property of the company.

2

A provision of this Schedule which expressly permits the administrator to do a specified thing is without prejudice to the generality of sub-paragraph (1).

3

A person who deals with the administrator of a company in good faith and for value need not inquire whether the administrator is acting within his powers.

C6060

F2101

The administrator of a company has the powers specified in Schedule 1 to this Act.

F2132

But the power to sell, hire out or otherwise dispose of property is subject to any regulations that may be made under paragraph 60A.

F25860A

1

The Secretary of State may by regulations make provision for—

a

prohibiting, or

b

C6363

The administrator of a company may apply to the court for directions in connection with his functions.

C6464

1

A company in administration or an officer of a company in administration may not exercise a management power without the consent of the administrator.

2

For the purpose of sub-paragraph (1)—

a

“management power” means a power which could be exercised so as to interfere with the exercise of the administrator’s powers,

b

it is immaterial whether the power is conferred by an enactment or an instrument, and

c

consent may be general or specific.

C6565Distribution

C301

The administrator of a company may make a distribution to a creditor of the company.

C1062

Section 175 shall apply in relation to a distribution under this paragraph as it applies in relation to a winding up.

3

A payment may not be made by way of distribution under this paragraph to a creditor of the company who is neither secured nor preferential F220unless—

a

the distribution is made by virtue of section 176A(2)(a), or

b

the court gives permission.

C31 C6666

The administrator of a company may make a payment otherwise than in accordance with paragraph 65 or paragraph 13 of Schedule 1 if he thinks it likely to assist achievement of the purpose of administration.

C6767General duties

The administrator of a company shall on his appointment take custody or control of all the property to which he thinks the company is entitled.

C6868

1

Subject to sub-paragraph (2), the administrator of a company shall manage its affairs, business and property in accordance with—

a

any proposals approved under paragraph 53,

b

any revision of those proposals which is made by him and which he does not consider substantial, and

c

any revision of those proposals approved under paragraph 54.

2

If the court gives directions to the administrator of a company in connection with any aspect of his management of the company’s affairs, business or property, the administrator shall comply with the directions.

3

The court may give directions under sub-paragraph (2) only if—

a

no proposals have been approved under paragraph 53,

b

the directions are consistent with any proposals or revision approved under paragraph 53 or 54,

c

the court thinks the directions are required in order to reflect a change in circumstances since the approval of proposals or a revision under paragraph 53 or 54, or

d

the court thinks the directions are desirable because of a misunderstanding about proposals or a revision approved under paragraph 53 or 54.

C6969Administrator as agent of company

In exercising his functions under this Schedule the administrator of a company acts as its agent.

C23 C7070Charged property: floating charge

1

The administrator of a company may dispose of or take action relating to property which is subject to a floating charge as if it were not subject to the charge.

2

Where property is disposed of in reliance on sub-paragraph (1) the holder of the floating charge shall have the same priority in respect of acquired property as he had in respect of the property disposed of.

3

In sub-paragraph (2) “acquired property” means property of the company which directly or indirectly represents the property disposed of.

C24 C7171Charged property: non-floating charge

1

The court may by order enable the administrator of a company to dispose of property which is subject to a security (other than a floating charge) as if it were not subject to the security.

2

An order under sub-paragraph (1) may be made only—

a

on the application of the administrator, and

b

where the court thinks that disposal of the property would be likely to promote the purpose of administration in respect of the company.

3

An order under this paragraph is subject to the condition that there be applied towards discharging the sums secured by the security—

a

the net proceeds of disposal of the property, and

b

any additional money required to be added to the net proceeds so as to produce the amount determined by the court as the net amount which would be realised on a sale of the property at market value.

4

If an order under this paragraph relates to more than one security, application of money under sub-paragraph (3) shall be in the order of the priorities of the securities.

5

An administrator who makes a successful application for an order under this paragraph shall send a copy of the order to the registrar of companies before the end of the period of 14 days starting with the date of the order.

6

An administrator commits an offence if he fails to comply with sub-paragraph (5) without reasonable excuse.

C7272Hire-purchase property

1

The court may by order enable the administrator of a company to dispose of goods which are in the possession of the company under a hire-purchase agreement as if all the rights of the owner under the agreement were vested in the company.

2

An order under sub-paragraph (1) may be made only—

a

on the application of the administrator, and

b

where the court thinks that disposal of the goods would be likely to promote the purpose of administration in respect of the company.

3

An order under this paragraph is subject to the condition that there be applied towards discharging the sums payable under the hire-purchase agreement—

a

the net proceeds of disposal of the goods, and

b

any additional money required to be added to the net proceeds so as to produce the amount determined by the court as the net amount which would be realised on a sale of the goods at market value.

4

An administrator who makes a successful application for an order under this paragraph shall send a copy of the order to the registrar of companies before the end of the period of 14 days starting with the date of the order.

5

An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (4).

C7373Protection for secured or preferential creditor

1

An administrator’s statement of proposals under paragraph 49 may not include any action which—

a

affects the right of a secured creditor of the company to enforce his security,

b

would result in a preferential debt of the company being paid otherwise than in priority to its non-preferential debts, F419...

F328bb

would result in an ordinary preferential debt of the company being paid otherwise than in priority to any secondary preferential debts that it may have,

c

would result in one preferential creditor of the company being paid a smaller proportion of F228an ordinary preferential debt than another F357, or

d

would result in one preferential creditor of the company being paid a smaller proportion of a secondary preferential debt than another.

2

Sub-paragraph (1) does not apply to—

a

action to which the relevant creditor consents,

b

a proposal for a voluntary arrangement under Part I of this Act (although this sub-paragraph is without prejudice to section 4(3)), F149. . .

c

a proposal for a compromise or arrangement to be sanctioned under F162Part 26 of the Companies Act 2006 (arrangements and reconstructions)F150 or

d

a proposal for a cross-border merger within the meaning of regulation 2 of the Companies (Cross-Border Mergers) Regulations 2007.

3

The reference to a statement of proposals in sub-paragraph (1) includes a reference to a statement as revised or modified.

77

1

An order of the court under paragraph 76—

a

may be made in respect of an administrator whose term of office has already been extended by order or by consent, but

b

may not be made after the expiry of the administrator’s term of office.

2

Where an order is made under paragraph 76 the administrator shall as soon as is reasonably practicable notify the registrar of companies.

3

An administrator who fails without reasonable excuse to comply with sub-paragraph (2) commits an offence.

file notice of the extension with the court, and

b

notify the registrar of companies.

6

An administrator who fails without reasonable excuse to comply with sub-paragraph (5) commits an offence.

make an interim order;

d

make any order it thinks appropriate (whether in addition to, in consequence of or instead of the order applied for).

C7680 Termination of administration where objective achieved

1

This paragraph applies where an administrator of a company is appointed under paragraph 14 or 22.

2

If the administrator thinks that the purpose of administration has been sufficiently achieved in relation to the company he may file a notice in the prescribed form—

a

with the court, and

b

with the registrar of companies.

3

The administrator’s appointment shall cease to have effect when the requirements of sub-paragraph (2) are satisfied.

4

Where the administrator files a notice he shall within the prescribed period send a copy to every creditor of the company F222, other than an opted-out creditor, of whose claim and address he is aware.

5

The rules may provide that the administrator is taken to have complied with sub-paragraph (4) if before the end of the prescribed period he publishes in the prescribed manner a notice undertaking to provide a copy of the notice under sub-paragraph (2) to any creditor of the company who applies in writing to a specified address.

6

An administrator who fails without reasonable excuse to comply with sub-paragraph (4) commits an offence.

81Court ending administration on application of creditor

1

On the application of a creditor of a company the court may provide for the appointment of an administrator of the company to cease to have effect at a specified time.

2

An application under this paragraph must allege an improper motive—

a

in the case of an administrator appointed by administration order, on the part of the applicant for the order, or

b

in any other case, on the part of the person who appointed the administrator.

3

On an application under this paragraph the court may—

a

adjourn the hearing conditionally or unconditionally;

b

dismiss the application;

c

make an interim order;

d

make any order it thinks appropriate (whether in addition to, in consequence of or instead of the order applied for).

1

If the administrator of a company thinks that the company has no property which might permit a distribution to its creditors, he shall send a notice to that effect to the registrar of companies.

2

The court may on the application of the administrator of a company disapply sub-paragraph (1) in respect of the company.

3

On receipt of a notice under sub-paragraph (1) the registrar shall register it.

4

On the registration of a notice in respect of a company under sub-paragraph (1) the appointment of an administrator of the company shall cease to have effect.

5

If an administrator sends a notice under sub-paragraph (1) he shall as soon as is reasonably practicable—

a

file a copy of the notice with the court, and

b

send a copy of the notice to each creditorF336, other than an opted-out creditor, of whose claim and address he is aware.

6

At the end of the period of three months beginning with the date of registration of a notice in respect of a company under sub-paragraph (1) the company is deemed to be dissolved.

7

On an application in respect of a company by the administrator or another interested person the court may—

a

extend the period specified in sub-paragraph (6),

An administrator may resign only in prescribed circumstances.

2

Where an administrator may resign he may do so only—

a

in the case of an administrator appointed by administration order, by notice in writing to the court,

b

in the case of an administrator appointed under paragraph 14, by notice in writing to the F117holder of the floating charge by virtue of which the appointment was made,

c

in the case of an administrator appointed under paragraph 22(1), by notice in writing to the company, or

d

in the case of an administrator appointed under paragraph 22(2), by notice in writing to the directors of the company.

C8188Removal of administrator from office

The court may by order remove an administrator from office.

C8289Administrator ceasing to be qualified

1

The administrator of a company shall vacate office if he ceases to be qualified to act as an insolvency practitioner in relation to the company.

2

Where an administrator vacates office by virtue of sub-paragraph (1) he shall give notice in writing—

a

in the case of an administrator appointed by administration order, to the court,

b

in the case of an administrator appointed under paragraph 14, to the F118holder of the floating charge by virtue of which the appointment was made,

c

in the case of an administrator appointed under paragraph 22(1), to the company, or

d

in the case of an administrator appointed under paragraph 22(2), to the directors of the company.

3

An administrator who fails without reasonable excuse to comply with sub-paragraph (2) commits an offence.

C8390Supplying vacancy in office of administrator

Paragraphs 91 to 95 apply where an administrator—

a

dies,

b

resigns,

c

is removed from office under paragraph 88, or

d

vacates office under paragraph 89.

C8491

1

Where the administrator was appointed by administration order, the court may replace the administrator on an application under this sub-paragraph made by—

a

a creditors’ committee of the company,

b

the company,

c

the directors of the company,

d

one or more creditors of the company, or

e

where more than one person was appointed to act jointly or concurrently as the administrator, any of those persons who remains in office.

2

95

The court may replace an administrator on the application of a person listed in paragraph 91(1) if the court—

a

is satisfied that a person who is entitled to replace the administrator under any of paragraphs 92 to 94 is not taking reasonable steps to make a replacement, or

b

that for another reason it is right for the court to make the replacement.

C8596Substitution of administrator: competing floating charge-holder

1

This paragraph applies where an administrator of a company is appointed under paragraph 14 by the holder of a qualifying floating charge in respect of the company’s property.

2

The holder of a prior qualifying floating charge in respect of the company’s property may apply to the court for the administrator to be replaced by an administrator nominated by the holder of the prior floating charge.

3

One floating charge is prior to another for the purposes of this paragraph if—

a

it was created first, or

b

it is to be treated as having priority in accordance with an agreement to which the holder of each floating charge was party.

4

Sub-paragraph (3) shall have effect in relation to Scotland as if the following were substituted for paragraph (a)—

“

it has priority of ranking in accordance with section 464(4)(b) of the Companies Act 1985 (c. 6), ".

97Substitution of administrator appointed by company or directors: creditors’ F256decision

1

This paragraph applies where—

a

an administrator of a company is appointed by a company or directors under paragraph 22, and

b

there is no holder of a qualifying floating charge in respect of the company’s property.

F3862

The administrator may be replaced by a decision of the creditors made by a qualifying decision procedure.

3

The decision has effect only if, before the decision is made, the new administrator has consented to act in writing.

does not prevent the exercise of the court’s powers under paragraph 75.

C8799Vacation of office: charges and liabilities

1

This paragraph applies where a person ceases to be the administrator of a company (whether because he vacates office by reason of resignation, death or otherwise, because he is removed from office or because his appointment ceases to have effect).

2

In this paragraph—

“the former administrator” means the person referred to in sub-paragraph (1), and
“cessation” means the time when he ceases to be the company’s administrator.

This paragraph applies where two or more persons are appointed to act jointly as the administrator of a company.

2

A reference to the administrator of the company is a reference to those persons acting jointly.

3

But a reference to the administrator of a company in paragraphs 87 to 99 of this Schedule is a reference to any or all of the persons appointed to act jointly.

4

Where an offence of omission is committed by the administrator, each of the persons appointed to act jointly—

a

commits the offence, and

b

may be proceeded against and punished individually.

5

The reference in paragraph 45(1)(a) to the name of the administrator is a reference to the name of each of the persons appointed to act jointly.

6

Where persons are appointed to act jointly in respect of only some of the functions of the administrator of a company, this paragraph applies only in relation to those functions.

C90102

1

This paragraph applies where two or more persons are appointed to act concurrently as the administrator of a company.

2

A reference to the administrator of a company in this Schedule is a reference to any of the persons appointed (or any combination of them).

An act of the administrator of a company is valid in spite of a defect in his appointment or qualification.

105Majority decision of directors

A reference in this Schedule to something done by the directors of a company includes a reference to the same thing done by a majority of the directors of a company.

C93106Penalties

1

A person who is guilty of an offence under this Schedule is liable to a fine (in accordance with section 430 and Schedule 10).

2

A person who is guilty of an offence under any of the following paragraphs of this Schedule is liable to a daily default fine (in accordance with section 430 and Schedule 10)—

a

paragraph 20,

b

paragraph 32,

c

paragraph 46,

d

paragraph 48,

e

paragraph 49,

f

paragraph 51,

g

paragraph 53,

h

paragraph 54,

i

paragraph 56,

j

paragraph 71,

k

paragraph 72,

l

paragraph 77,

m

paragraph 78,

n

paragraph 80,

o

paragraph 84,

p

paragraph 86, and

q

paragraph 89.

C94107Extension of time limit

1

Where a provision of this Schedule provides that a period may be varied in accordance with this paragraph, the period may be varied in respect of a company—

a

by the court, and

b

on the application of the administrator.

2

A time period may be extended in respect of a company under this paragraph—

a

more than once, and

b

after expiry.

may not be used to extend a period by more than 28 days,

c

may not be used to extend a period which has been extended by the court, and

d

may not be used to extend a period after expiry.

C96109

Where a period is extended under paragraph 107 or 108, a reference to the period shall be taken as a reference to the period as extended.

C97110Amendment of provision about time

1

The Secretary of State may by order amend a provision of this Schedule which—

a

requires anything to be done within a specified period of time,

b

prevents anything from being done after a specified time, or

c

requires a specified minimum period of notice to be given.

2

An order under this paragraph—

a

must be made by statutory instrument, and

b

shall be subject to annulment in pursuance of a resolution of either House of Parliament.

C98111Interpretation

1

In this Schedule—

“administrative receiver” has the meaning given by section 251,
“administrator” has the meaning given by paragraph 1 and, where the context requires, includes a reference to a former administrator,
F122. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F309. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F309. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“enters administration” has the meaning given by paragraph 1,
“floating charge” means a charge which is a floating charge on its creation,
“in administration” has the meaning given by paragraph 1,
“hire-purchase agreement” includes a conditional sale agreement, a chattel leasing agreement and a retention of title agreement,
“holder of a qualifying floating charge” in respect of a company’s property has the meaning given by paragraph 14,
“market value” means the amount which would be realised on a sale of property in the open market by a willing vendor,
“the purpose of administration” means an objective specified in paragraph 3, and
“unable to pay its debts” has the meaning given by section 123.

F1231A

In this Schedule, “company” means—

F186a

a company registered under the Companies Act 2006 in England and Wales or Scotland,

b

a company incorporated in an EEA State other than the United Kingdom, or

c

a company not incorporated in an EEA State but having its centre of main interests in a member State other than Denmark.

1B

In sub-paragraph (1A), in relation to a company, “centre of main interests” has the same meaning as in the EC Regulation and, in the absence of proof to the contrary, is presumed to be the place of its registered office (within the meaning of that Regulation).

2

F195. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

In this Schedule a reference to action includes a reference to inaction.

111AF124Non-UK companies

A company incorporated outside the United Kingdom that has a principal place of business in Northern Ireland may not enter administration under this Schedule unless it also has a principal place of business in England and Wales or Scotland (or both in England and Wales and in Scotland).

C99112Scotland

In the application of this Schedule to Scotland—

a

a reference to filing with the court is a reference to lodging in court, and

b

a reference to a charge is a reference to a right in security.

C100113

Where property in Scotland is disposed of under paragraph 70 or 71, the administrator shall grant to the disponee an appropriate document of transfer or conveyance of the property, and—

a

that document, or

b

recording, intimation or registration of that document (where recording, intimation or registration of the document is a legal requirement for completion of title to the property),

has the effect of disencumbering the property of or, as the case may be, freeing the property from, the security.

C102114

In Scotland, where goods in the possession of a company under a hire-purchase agreement are disposed of under paragraph 72, the disposal has the effect of extinguishing as against the disponee all rights of the owner of the goods under the agreement.

C103115

1

In Scotland, the administrator of a company may make, in or towards the satisfaction of the debt secured by the floating charge, a payment to the holder of a floating charge which has attached to the property subject to the charge.

F4061A

In Scotland, sub-paragraph (1B) applies in connection with the giving by the court of permission as provided for in paragraph 65(3)(b).

1B

On the giving by the court of such permission, any floating charge granted by the company shall, unless it has already so attached, attach to the property which is subject to the charge.

2

In Scotland, where the administrator thinks that the company has insufficient property to enable a distribution to be made to unsecured creditors other than by virtue of section 176A(2)(a), he may file a notice to that effect with the registrar of companies.

3

On delivery of the notice to the registrar of companies, any floating charge granted by the company shall, unless it has already so attached, attach to the property which is subject to the charge F321....

F3454

Attachment of a floating charge under sub-paragraph (1B) or (3) has effect as if the charge is a fixed security over the property to which it has attached.

C101116

In Scotland, the administrator in making any payment in accordance with paragraph 115 shall make such payment subject to the rights of any of the following categories of persons (which rights shall, except to the extent provided in any instrument, have the following order of priority)—

a

the holder of any fixed security which is over property subject to the floating charge and which ranks prior to, or pari passu with, the floating charge,

b

creditors in respect of all liabilities and expenses incurred by or on behalf of the administrator,

c

the administrator in respect of his liabilities, expenses and remuneration and any indemnity to which he is entitled out of the property of the company,

d

the preferential creditors entitled to payment in accordance with paragraph 65,

e

the holder of the floating charge in accordance with the priority of that charge in relation to any other floating charge which has attached, and

f

the holder of a fixed security, other than one referred to in paragraph (a), which is over property subject to the floating charge.

C115 C2 C32SCHEDULE 1 Powers of Administrator or Administrative Receiver

Sections 14, 42.

Annotations:

Modifications etc. (not altering text)

C115

Sch. 1 modified (1.12.1994) by The Insolvent Partnerships Order 1994 (S.I. 1994/2421), Sch. 2 para. 43 (as amended (1.7.2005) by S.I. 2005/1516, art. 7, Sch. 1)

C2

Sch. 1 modified (15.7.2003) by Greater London Authority Act 1999 (c. 29), ss. 220(3), 425, Sch. 14 paras. 11, 19 (with Sch. 12 para. 9(1)); S.I. 2003/1920, art. 2(b)

C32

Sch. 1 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3

1

Power to take possession of, collect and get in the property of the company and, for that purpose, to take such proceedings as may seem to him expedient.

2

Power to sell or otherwise dispose of the property of the company by public auction or private contract or, in Scotland, to sell, ~~F133feu,~~ hire out or otherwise dispose of the property of the company by public roup or private bargain.

3

Power to raise or borrow money and grant security therefor over the property of the company.

4

Power to appoint a solicitor or accountant or other professionally qualified person to assist him in the performance of his functions.

5

Power to bring or defend any action or other legal proceedings in the name and on behalf of the company.

6

Power to refer to arbitration any question affecting the company.

7

Power to effect and maintain insurances in respect of the business and property of the company.

8

Power to use the company’s seal.

9

Power to do all acts and to execute in the name and on behalf of the company any deed, receipt or other document.

10

Power to draw, accept, make and endorse any bill of exchange or promissory note in the name and on behalf of the company.

11

Power to appoint any agent to do any business which he is unable to do himself or which can more conveniently be done by an agent and power to employ and dismiss employees.

12

Power to do all such things (including the carrying out of works) as may be necessary for the realisation of the property of the company.

13

Power to make any payment which is necessary or incidental to the performance of his functions.

14

Power to carry on the business of the company.

15

Power to establish subsidiaries of the company.

16

Power to transfer to subsidiaries of the company the whole or any part of the business and property of the company.

17

Power to grant or accept a surrender of a lease or tenancy of any of the property of the company, and to take a lease or tenancy of any property required or convenient for the business of the company.

18

Power to make any arrangement or compromise on behalf of the company.

19

Power to call up any uncalled capital of the company.

20

Power to rank and claim in the bankruptcy, insolvency, sequestration or liquidation of any person indebted to the company and to receive dividends, and to accede to trust deeds for the creditors of any such person.

21

Power to present or defend a petition for the winding up of the company.

22

Power to change the situation of the company’s registered office.

23

Power to do all other things incidental to the exercise of the foregoing powers.

C3 C4SCHEDULE 2 Powers of a Scottish Receiver (Additional to Those Conferred on him by the Instrument of Charge)

Section 55.

Annotations:

Modifications etc. (not altering text)

C3

Sch. 2 applied (with modifications) (S.) (6.4.2001) by S.S.I. 2001/128, reg. 4(1), Sch. 2

C4

Sch. 10 modified (S.) (6.4.2001) by S.S.I. 2001/128, reg. 4(2), Sch. 3

1

Power to take possession of, collect and get in the property from the company or a liquidator thereof or any other person, and for that purpose, to take such proceedings as may seem to him expedient.

2

Power to sell, F51feu, hire out or otherwise dispose of the property by public roup or private bargain and with or without advertisement.

3

Power to raise or borrow money and grant security therefor over the property.

4

Power to appoint a solicitor or accountant or other professionally qualified person to assist him in the performance of his functions.

5

Power to bring or defend any action or other legal proceedings in the name and on behalf of the company.

6

Power to refer to arbitration all questions affecting the company.

7

Power to effect and maintain insurances in respect of the business and property of the company.

8

Power to use the company’s seal.

9

Power to do all acts and to execute in the name and on behalf of the company any deed, receipt or other document.

10

Power to to draw, accept, make and endorse any bill of exchange or promissory note in the name and on behalf of the company.

11

Power to to appoint any agent to do any business which he is unable to do himself or which can more conveniently be done by an agent, and power to employ and dismiss employees.

12

Power to do all such things (including the carrying out of works), as may be necessary for the realisation of the property.

13

Power to make any payment which is necessary or incidental to the performance of his functions.

14

Power to carry on the business of the company or any part of it.

15

Power to grant or accept a surrender of a lease or tenancy of any of the property, and to take a lease or tenancy of any property required or convenient for the business of the company.

16

Power to make any arrangement or compromise on behalf of the company.

C517

Power to call up any uncalled capital of the company.

18

Power to to establish subsidiaries of the company.

19

Power to to transfer to subsidiaries of the company the business of the company or any part of it and any of the property.

20

Power to rank and claim in the bankruptcy, insolvency, sequestration or liquidation of any person or company indebted to the company and to receive dividends, and to accede to trust deeds for creditors of any such person.

21

Power to present or defend a petition for the winding up of the company.

22

Power to change the situation of the company’s registered office.

23

Power to do all other things incidental to the exercise of the powers mentioned in section 55(1) of this Act or above in this Schedule.

F52 C17SCHEDULE 2A EXCEPTIONS TO PROHIBITION ON APPOINTMENT OF ADMINISTRATIVE RECEIVER: SUPPLEMENTARY PROVISIONS

Annotations:

Amendments (Textual)

F52

Sch. 2A inserted (15.9.2003) by 2002 c. 40, s. 250(2), 279, Sch. 18 (with s. 249(6)); S.I. 2003/2093, art. 2(1), Sch. 1 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))

Modifications etc. (not altering text)

C17

Sch. 2A extended (24.6.2003) by The Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations 2003 (S.I. 2003/1633), regs. 1, 15, Sch. 2 para. 7

is necessary for the purposes of implementing the arrangement.

2Capital market investment

1

For the purposes of section 72B an investment is a capital market investment if it—

a

is within article 77 F187or 77A of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (debt instruments), and

b

is rated, listed or traded or designed to be rated, listed or traded.

2

In sub-paragraph (1)—

“rated” means rated for the purposes of investment by an internationally recognised rating agency,
“listed” means admitted to the official list within the meaning given by section 103(1) of the Financial Services and Markets Act 2000 (c. 8) (interpretation), and
“traded” means admitted to trading on a market established under the rules of a recognised investment exchange or on a foreign market.

3

In sub-paragraph (2)—

“recognised investment exchange” has the meaning given by section 285 of the Financial Services and Markets Act 2000 (recognised investment exchange), and
“foreign market” has the same meaning as “relevant market” in article 67(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (S.I. 2001/1335) (foreign markets).

3

1

An investment is also a capital market investment for the purposes of section 72B if it consists of a bond or commercial paper issued to one or more of the following—

a

an investment professional within the meaning of article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001,

b

a person who is, when the agreement mentioned in section 72B(1) is entered into, a certified high net worth individual in relation to a communication within the meaning of article 48(2) of that order,

c

a person to whom article 49(2) of that order applies (high net worth company, &c.),

d

a person who is, when the agreement mentioned in section 72B(1) is entered into, a certified sophisticated investor in relation to a communication within the meaning of article 50(1) of that order, and

e

a person in a State other than the United Kingdom who under the law of that State is not prohibited from investing in bonds or commercial paper.

2

In sub-paragraph (1)—

“bond” shall be construed in accordance with article 77 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 F199, and includes any instrument falling within article 77A of that Order (S.I. 2001/544), and
“commercial paper” has the meaning given by article 9(3) of that order.

b

may be expressed wholly or partly in foreign currency (in which case the sterling equivalent shall be calculated as at the time when the arrangement is entered into or the project begins).

6Step-in rights

1

For the purposes of sections 72C to 72E a project has “step-in rights” if a person who provides finance in connection with the project has a conditional entitlement under an agreement to—

a

assume sole or principal responsibility under an agreement for carrying out all or part of the project, or

b

make arrangements for carrying out all or part of the project.

2

In sub-paragraph (1) a reference to the provision of finance includes a reference to the provision of an indemnity.

the grant of a concession or franchise, and

e

any other commercial resource.

9 “Public body”

1

In section 72C “public body” means—

a

a body which exercises public functions,

b

a body specified for the purposes of this paragraph by the Secretary of State, and

c

a body within a class specified for the purposes of this paragraph by the Secretary of State.

2

A specification under sub-paragraph (1) may be—

a

general, or

b

for the purpose of the application of section 72C to a specified case.

10Regulated business

1

For the purposes of section 72D a business is regulated if it is carried on—

a

~~F112in reliance on a licence granted to a person under section 7 of the Telecommunications Act 1984 (c. 12) (telecommunications service),~~

b

in reliance on a licence under section 7 F405, 7A or 7B of the Gas Act 1986 (c. 44) (transport and supply of gas),

c

in reliance on a licence granted by virtue of section 41C of that Act (power to prescribe additional licensable activity),

d

in reliance on a licence under section 6 of the Electricity Act 1989 (c. 29) (supply of electricity),

e

by a water undertaker,

f

by a sewerage undertaker,

g

by a universal service provider within the meaning F196of Part 3 of the Postal Services Act 2011,

F197h

by a Post Office company within the meaning of Part 1 of that Act,

i

F198. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

j

in reliance on a licence under section 8 of the Railways Act 1993 (c. 43) (railway services),

k

in reliance on a licence exemption under section 7 of that Act (subject to sub-paragraph (2) below),

l

by the operator of a system of transport which is deemed to be a railway for a purpose of Part I of that Act by virtue of section 81(2) of that Act (tramways, &c.), F126. . .

m

by the operator of a vehicle carried on flanged wheels along a system within paragraph (l)F127 or

F313n

in reliance on a European licence granted pursuant to—

i

a provision contained in any instrument made for the purpose of implementing Council Directive 1995/18/EC dated 19th June 1995 on the licensing of railway undertakings or Chapter III of Directive 2012/34/EU of the European Parliament and of the Council of 21st November 2012 establishing a single European railway area (recast), or

ii

any action taken by an EEA State for that purpose.

2

Sub-paragraph (1)(k) does not apply to the operator of a railway asset on a railway unless on some part of the railway there is a permitted line speed exceeding 40 kilometres per hour.

F1112A

For the purposes of section 72D a business is also regulated to the extent that it consists in the provision of a public electronic communications network or a publicelectronic communications service.

F1282B

In sub-paragraph (1)(n), an “EEA State” means a member State, Norway, Iceland or Liechtenstein.

11 “Person”

F363

Sch. 4 Pt. I heading omitted (26.5.2015) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 120(6)(c), 164(3)(i)(i)

Modifications etc. (not altering text)

C9

Sch. 4, Pt. I (paras. 1–3), Pt. II (paras. 4, 5), Pt. III (paras. 6–13) extended by S.I. 1990/1338, art. 2, Sch. 1 para. 2(7)

1

Power to pay any class of creditors in full.

2

Power to make any compromise or arrangement with creditors or persons claiming to be creditors, or having or alleging themselves to have any claim (present or future, certain or contingent, ascertained or sounding only in damages) against the company, or whereby the company may be rendered liable.

3

F390... power to compromise, on such terms as may be agreed—

a

all calls and liabilities to calls, all debts and liabilities capable of resulting in debts, and all claims (present or future, certain or contingent, ascertained or sounding only in damages) subsisting or supposed to subsist between the company and a contributory or alleged contributory or other debtor or person apprehending liability to the company, and

b

all questions in any way relating to or affecting the assets or the winding up of the company,

and take any security for the discharge of any such call, debt, liability or claim and give a complete discharge in respect of it.

F533A

Power to bring legal proceedings under section 213, 214, 238, 239, 242, 243 or 423.

Part II C10F255...

Annotations:

Amendments (Textual)

F255

Sch. 4 Pt. II heading omitted (26.5.2015) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 120(6)(c), 164(3)(i)(i)

Modifications etc. (not altering text)

C10

Sch. 4, Pt. I (paras. 1–3), Pt. II (paras. 4, 5), Pt. III (paras. 6–13) extended by S.I. 1990/1338, art. 2, Sch. 1 para. 2(7)

4

Power to bring or defend any action or other legal proceeding in the name annd on behalf of the company.

5

Power to carry on the business of the company so far as may be necessary for its beneficial winding up.

Part IIIF414... C11

Annotations:

Amendments (Textual)

F414

Sch. 4 Pt. III heading omitted (26.5.2015) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 120(6)(c), 164(3)(i)(i)

Modifications etc. (not altering text)

C11

Sch. 4, Pt. I (paras. 1–3), Pt. II (paras. 4, 5), Pt. III (paras. 6–13) extended by S.I. 1990/1338, art. 2, Sch. 1 para. 2(7)

6

Power to sell any of the company’s property by public auction or private contract with power to transfer the whole of it to any person or to sell the same in parcels.

F4166A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

Power to do all acts and execute, in the name and on behalf of the company, all deeds, receipts and other documents and for that purpose to use, when necessary, the company’s seal.

8

Power to prove, rank and claim in the bankruptcy, insolvency or sequestration of any contributory for any balance against his estate, and to receive dividends in the bankruptcy, insolvency or sequestration in respect of that balance, as a separate debt due from the bankrupt or insolvent, and rateably with the other separate creditors.

9

Power to draw, accept, make and indorse any bill of exchange or promissory note in the name and on behalf of the company, with the same effect with respect to the company’s liability as if the bill or note had been drawn, accepted, made or indorsed by or on behalf of the company in the course of its business.

10

Power to raise on the security of the assets of the company any money requisite.

11

Power to take out in his official name letters of administration to any deceased contributory, and to do in his official name any other act necessary for obtaining payment of any money due from a contributory or his estate which cannot conveniently be done in the name of the company.

In all such cases the money due is deemed, for the purpose of enabling the liquidator to take out the letters of administration or recover the money, to be due to the liquidator himself.

12

Power to appoint an agent to do any business which the liquidator is unable to do himself.

C3413

Power to do all such other things as may be necessary for winding up the company’s affairs and distributing its assets.

F141SCHEDULE 4ZAConditions for making a debt relief order

Annotations:

Amendments (Textual)

F141

Sch. 4ZA inserted (24.2.2009 for certain purposes otherwise 6.4.2009) by Tribunals, Courts and Enforcement Act 2007 (c. 15), ss. 108(2), 148(5), Sch. 18; S.I. 2009/382, art. 2

Part 1Conditions which must be met

Connection with England and Wales

1

The debtor—

a

is domiciled in England and Wales on the application date; or

b

at any time during the period of three years ending with that date—

i

was ordinarily resident, or had a place of residence, in England and Wales; or

ii

carried on business in England and Wales.

2

The reference in sub-paragraph (1)(b)(ii) to the debtor carrying on business includes—

a

the carrying on of business by a firm or partnership of which he is a member;

b

the carrying on of business by an agent or manager for him or for such a firm or partnership.

Debtor's previous insolvency history

The debtor has not given a preference to any person during the period between—

a

the start of the period of two years ending with the application date; and

b

the determination date.

2

For this purpose a debtor gives a preference to a person if—

a

that person is one of the debtor's creditors to whom a qualifying debt is owed or is a surety or guarantor for any such debt, and

b

the debtor does anything or suffers anything to be done which (in either case) has the effect of putting that person into a position which, in the event that a debt relief order is made in relation to the debtor, will be better than the position he would have been in if that thing had not been done.

F142SCHEDULE 4ZBDebt relief restrictions orders and undertakings

Annotations:

Amendments (Textual)

F142

Sch. 4ZB inserted (24.2.2009 for certain purposes otherwise 6.4.2009) by Tribunals, Courts and Enforcement Act 2007 (c. 15), ss. 108(2), 148(5), Sch. 19; S.I. 2009/382, art. 2

Debt relief restrictions order

4

For the purposes of sub-paragraph (2)—

“excessive pension contribution” shall be construed in accordance with section 342A;
“preference” shall be construed in accordance with paragraph 10(2) of Schedule 4ZA;
“undervalue” shall be construed in accordance with paragraph 9(2) of that Schedule.

Timing of application for order

This paragraph applies to a case in which both an interim debt relief restrictions order and a debt relief restrictions order are made.

2

Paragraph 4(2) has effect in relation to the debt relief restrictions order as if a reference to the date of that order were a reference to the date of the interim debt relief restrictions order.

Debt relief restrictions undertaking

7

1

A debtor may offer a debt relief restrictions undertaking to the Secretary of State.

2

In determining whether to accept a debt relief restrictions undertaking the Secretary of State shall have regard to the matters specified in paragraph 2(2) and (3).

8

A reference in an enactment to a person in respect of whom a debt relief restrictions order has effect (or who is “the subject of” a debt relief restrictions order) includes a reference to a person in respect of whom a debt relief restrictions undertaking has effect.

provide for a debt relief restrictions undertaking to cease to have effect before the date specified under sub-paragraph (1)(b).

Effect of revocation of debt relief order

10

Unless the court directs otherwise, the revocation at any time of a debt relief order does not —

a

affect the validity of any debt relief restrictions order, interim debt relief restrictions order or debt relief restrictions undertaking which is in force in respect of the debtor;

b

prevent the determination of any application for a debt relief restrictions order, or an interim debt relief restrictions order, in relation to the debtor that was instituted before that time;

c

prevent the acceptance of a debt relief restrictions undertaking that was offered before that time; or

d

prevent the institution of an application for a debt relief restrictions order or interim debt relief restrictions order in respect of the debtor, or the offer or acceptance of a debt relief restrictions undertaking by the debtor, after that time.

F54SCHEDULE 4A

Annotations:

Amendments (Textual)

F54

Sch. 4A inserted (1.4.2004) by 2002 c. 40, ss. 257(2), 279, Sch. 20 (with s. 249(6)); S.I. 2003/2093, art. 2(2), Sch. 2 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))

Bankruptcy Restrictions Order and Undertaking

1Bankruptcy restrictions order

1

A bankruptcy restrictions order may be made by the court.

2

An order may be made only on the application of—

a

the Secretary of State, or

b

the official receiver acting on a direction of the Secretary of State.

2Grounds for making order

1

The court shall grant an application for a bankruptcy restrictions order if it thinks it appropriate having regard to the conduct of the bankrupt (whether before or after the making of the bankruptcy order).

2

The court shall, in particular, take into account any of the following kinds of behaviour on the part of the bankrupt—

a

failing to keep records which account for a loss of property by the bankrupt, or by a business carried on by him, where the loss occurred in the period beginning 2 years before F206the making of the bankruptcy application or (as the case may be) the presentation of the bankruptcy petition and ending with the date of the application for the bankruptcy restrictions order ;

b

failing to produce records of that kind on demand by the official receiver or the trustee;

c

entering into a transaction at an undervalue;

d

giving a preference;

e

making an excessive pension contribution;

f

a failure to supply goods or services which were wholly or partly paid for which gave rise to a claim provable in the bankruptcy;

g

trading at a time before commencement of the bankruptcy when the bankrupt knew or ought to have known that he was himself to be unable to pay his debts;

h

incurring, before commencement of the bankruptcy, a debt which the bankrupt had no reasonable expectation of being able to pay;

i

failing to account satisfactorily to the court, the official receiver or the trustee for a loss of property or for an insufficiency of property to meet bankruptcy debts;

j

carrying on any gambling, rash and hazardous speculation or unreasonable extravagance which may have materially contributed to or increased the extent of the bankruptcy or which took place between F267the making of the bankruptcy application or (as the case may be) the presentation of the bankruptcy petition and commencement of the bankruptcy;

k

neglect of business affairs of a kind which may have materially contributed to or increased the extent of the bankruptcy;

l

fraud or fraudulent breach of trust;

m

failing to cooperate with the official receiver or the trustee.

3

The court shall also, in particular, consider whether the bankrupt was an undischarged bankrupt at some time during the period of six years ending with the date of the bankruptcy to which the application relates.

4

For the purpose of sub-paragraph (2)—

F297...
“excessive pension contribution” shall be construed in accordance with section 342A,
“preference” shall be construed in accordance with section 340, and
“undervalue” shall be construed in accordance with section 339.

3Timing of application for order

1

An application for a bankruptcy restrictions order in respect of a bankrupt must be made—

a

before the end of the period of one year beginning with the date on which the bankruptcy commences, or

b

with the permission of the court.

2

The period specified in sub-paragraph (1)(a) shall cease to run in respect of a bankrupt while the period set for his discharge is suspended under section 279(3).

4Duration of order

1

A bankruptcy restrictions order—

a

shall come into force when it is made, and

b

shall cease to have effect at the end of a date specified in the order.

2

The date specified in a bankruptcy restrictions order under sub-paragraph (1)(b) must not be—

a

before the end of the period of two years beginning with the date on which the order is made, or

b

after the end of the period of 15 years beginning with that date.

on the acceptance of a bankruptcy restrictions undertaking made by the bankrupt, or

c

if the court discharges the interim order on the application of the person who applied for it or of the bankrupt.

6

1

This paragraph applies to a case in which both an interim bankruptcy restrictions order and a bankruptcy restrictions order are made.

2

Paragraph 4(2) shall have effect in relation to the bankruptcy restrictions order as if a reference to the date of that order were a reference to the date of the interim order.

7Bankruptcy restrictions undertaking

1

A bankrupt may offer a bankruptcy restrictions undertaking to the Secretary of State.

2

In determining whether to accept a bankruptcy restrictions undertaking the Secretary of State shall have regard to the matters specified in paragraph 2(2) and (3).

8

A reference in an enactment to a person in respect of whom a bankruptcy restrictions order has effect (or who is “the subject of” a bankruptcy restrictions order) includes a reference to a person in respect of whom a bankruptcy restrictions undertaking has effect.

Sch. 5 Pt. I heading omitted (26.5.2015) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 121(3), 164(3)(i)(i)

1

Power to carry on any business of the bankrupt so far as may be necessary for winding it up beneficially and so far as the trustee is able to do so without contravening any requirement imposed by or under any enactment.

2

Power to bring, institute or defend any action or legal proceedings relating to the property comprised in the bankrupt’s estate.

F552A

Power to bring legal proceedings under section 339, 340 or 423.

3

Power to accept as the consideration for the sale of any property comprised in the bankrupt’s estate a sum of money payable at a future time subject to such stipulations as to security or otherwise as the creditors’ committee or the court thinks fit.

4

Power to mortgage or pledge any part of the property comprised in the bankrupt’s estate for the purpose of raising money for the payment of his debts.

5

Power, where any right, option or other power forms part of the bankrupt’s estate, to make payments or incur liabilities with a view to obtaining, for the benefit of the creditors, any property which is the subject of the right, option or power.

6

F190Power to refer to arbitration, or compromise on such terms as may be agreed on, any debts, claims or liabilities subsisting or supposed to subsist between the bankrupt and any person who may have incurred any liability to the bankrupt.

7

Power to make such compromise or other arrangement as may be thought expedient with creditors, or persons claiming to be creditors, in respect of bankruptcy debts.

8

Power to make such compromise or other arrangement as ay be thought expedient with respect to any claim arising out of or incidental to the bankrupt’s estate made or capable of being made on the trustee by any person ~~F191or by the trustee on any person~~.

Part IIF221...

Annotations:

Amendments (Textual)

F221

Sch. 5 Pt. II heading omitted (26.5.2015) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 121(3), 164(3)(i)(i)

9

Power to sell any part of the property for the time being comprised in the bankrupt’s estate, including the goodwill and book debts of any business.

F1929A

Power to refer to arbitration, or compromise on such terms as may be agreed, any debts, claims or liabilities subsisting or supposed to subsist between the bankrupt and any person who may have incurred any liability to the bankrupt.

9B

Power to make such compromise or other arrangement as may be thought expedient with respect to any claim arising out of or incidental to the bankrupt's estate made or capable of being made by the trustee on any person.

10

Power to give receipts for any money received by him, being receipts which effectually discharge the person paying the money from all responsibility in respect of its application.

11

Power to prove, rank, claim and draw a dividend in respect of such debts due to the bankrupt as are comprised in his estate.

12

Power to exercise in relation to any property comprised in the bankrupt’s estate any powers the capacity to exercise which is vested in him under Parts VIII to XI of this Act.

13

Power to deal with any property comprised in the estate to which the bankrupt is beneficially entitled as tenant in tail in the same manner as the bankrupt might have dealt with it.

Part IIIF259...

Annotations:

Amendments (Textual)

F259

Sch. 5 Pt. III heading omitted (26.5.2015) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 121(3), 164(3)(i)(i)

14

For the purposes of, or in connection with, the exercise of any of his powers under Parts VIII to XI of this Act, the trustee may, by his official name—

a

hold property of every description,

b

make contracts,

c

sue and be sued,

d

enter into engagements binding on himself and, in respect of the bankrupt’s estate, on his successors in office,

e

employ an agent,

f

execute any power of attorney, deed or other instrument;

and he may do any other act which is necessary or expedient for the purposes of or in connection with the exercise of those powers.

C35 C36SCHEDULE 6 The Categories of Preferential Debts

Section 386.

Annotations:

Modifications etc. (not altering text)

C35

Sch. 6 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 103, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 2

C36

Sch. 6 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3

Category 1: Debts due to Inland Revenue

1

~~F56Sums due at the relevant date from the debtor on account of deductions of income tax from~~ ~~F109taxable earnings (as defined by section 10 of the Income Tax (Earnings and Pensions) Act 2003)~~ ~~paid during the period of 12 months next before that date.~~

where the whole of the accounting period to which any aggregates levy is attributable falls within the 6-month period, the whole amount of that levy is referable to that period; and

b

in any other case the amount of any aggregates levy which is referable to the 6-month period is the proportion of the levy which is equal to such proportion (if any) of the accounting period in question as falls within the 6-month period;

and references here to accounting periods shall be construed in accordance with Part 2 of the Finance Act 2001.

4

~~F136The amount of any car tax which is due at the relevant date from the debtor and which became due within a period of 12 months next before that date.~~

5

~~F137Any amount which is due—~~

a

~~by way of general betting duty~~ ~~F67, bingo duty or gaming duty, or~~

b

~~under section 12(1) of the~~ M9~~Betting and Gaming Duties Act 1981 (general betting duty and pool betting duty recoverable from agent collecting stakes),~~ F68~~. . .~~

F68c

~~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .~~

~~from the debtor at the relevant date and which became due within the period of 12 months next before that date.~~

F69F705A

The amount of any excise duty on beer which is due at the relevant date from the debtor and which became due within a period of 6 months next before that date.

F71F725B

Any amount which is due by way of lottery duty from the debtor at the relevant date and which became due within the period of 12 months next before that date.

F73F745C

Any amount which is due by way of air passenger duty from the debtor at the relevant date and which became due within the period of six months next before that date.

Category 4: Contributions to occupational pension schemes, etc.

8

Any sum which is owed by the debtor and is a sum to which F76Schedule 4 to the Pension Schemes Act 1993applies (contributions to occupational pension schemes and state scheme premiums).

Category 5: Remuneration, etc., of employees

9

So much of any amount which—

a

is owed by the debtor to a person who is or has been an employee of the debtor, and

b

is payable by way of remuneration in respect of the whole or any part of the period of 4 months next before the relevant date,

as does not exceed so much as may be prescribed by order made by the Secretary of State.

10

An amount owed by way of accrued holiday remuneration, in respect of any period of employment before the relevant date, to a person whose employment by the debtor has been terminated, whether before, on or after that date.

11

So much of any sum owed in respect of money advanced for the purpose as has been applied for the payment of a debt which, if it had not been paid, would have been a debt falling within paragraph 9 or 10.

12

So much of any amount which—

a

is ordered (whether before or after the relevant date) to be paid by the debtor under the M11Reserve Forces (Safeguard of Employment) Act 1985, and

b

is so ordered in respect of a default made by the debtor before that date in the discharge of his obligations under that Act,

as does not exceed such amount as may be prescribed by order made by the Secretary of State.

Interpertation for Category 5

13

1

For the purposes of paragraphs 9 to 12, a sum is payable by the debtor to a person by way of remuneration in respect of any period if—

a

it is paid as wages or salary (whether payable for time or for piece work or earned wholly or partly by way of commission) in respect of services rendered to the debtor in that period, or

b

it is an amount falling within the following sub-paragraph and is payable by the debtor in respect of that period.

F772

An amount falls within this sub-paragraph if it is—

a

a guarantee payment under Part III of the Employment Rights Act 1996 (employee without work to do);

b

any payment for time off under section 53 (time off to look for work or arrange training) or section 56 (time off for ante-natal care) of that Act or under section 169 of the Trade Union and Labour Relations (Consolidation) Act 1992 (time off for carrying out trade union duties etc.);

c

remuneration on suspension on medical grounds, or on maternity grounds, under Part VII of the Employment Rights Act 1996; or

d

remuneration under a protective award under section 189 of the Trade Union and Labour Relations (Consolidation) Act 1992 (redundancy dismissal with compensation).

14

1

This paragraph relates to a case in which a person’s employment has been terminated by or in consequence of his employer going into liquidation or being ~~F212adjudged~~F212made bankrupt or (his employer being a company not in liquidation) by or in consequence of—

a

a receiver being appointed as mentioned in section 40 of this Act (debenture-holders secured by floating charge), or

b

the appointment of a receiver under section 53(6) or 54(5) of this Act (Scottish company with property subject to floating charge), or

c

the taking of possession by debenture-holders (so secured), as mentioned in F153section 754 of the Companies Act 2006 .

2

For the purposes of paragraphs 9 to 12, holiday remuneration is deemed to have accrued to that person in respect of any period of employment if, by virtue of his contract of employment or of any enactment that remuneration would have accrued in respect of that period if his employment had continued until he became entitled to be allowed the holiday.

3

The reference in sub-paragraph (2) to any enactment includes an order or direction made under an enactment.

15

Sch. 6 paras. 15B, 15C and cross-headings inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 13(1), 148(5); S.I. 2014/3160, art. 2(1)(a)

15B

So much of any amount owed at the relevant date by the debtor in respect of an eligible deposit as does not exceed the compensation that would be payable in respect of the deposit under the Financial Services Compensation Scheme to the person or persons to whom the amount is owed.

F300Category 8: Other deposits

Annotations:

Amendments (Textual)

F300

Sch. 6 paras. 15BA, 15BB and cross-heading inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 11(2) (with art. 3)

15BA

So much of any amount owed at the relevant date by the debtor to one or more eligible persons in respect of an eligible deposit as exceeds any compensation that would be payable in respect of the deposit under the Financial Services Compensation Scheme to that person or those persons.

15BB

An amount owed at the relevant date by the debtor to one or more eligible persons in respect of a deposit that—

a

was made through a non-EEA branch of a credit institution authorised by the competent authority of an EEA state, and

b

would have been an eligible deposit if it had been made through an EEA branch of that credit institution.

Interpretation for F284categories 6A, 7 and 8.

Annotations:

Amendments (Textual)

F284

Words in Sch. 6 para. 15C heading substituted (26.3.2015) by The Deposit Guarantee Scheme Regulations 2015 (S.I. 2015/486), regs. 1(2), 14(3)(b)

15C

F288A1

shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

F225SCHEDULE 7 Insolvency Practitioners Tribunal

Section 396.

Annotations:

Amendments (Textual)

F225

Sch. 7 omitted (1.10.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(7), Sch. 6 para. 21 (with Sch. 6 para. 23); S.I. 2015/1732, art. 2(e)(vi)

F225 Panels of members

F2251

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F225 Remuneration of members

F2252

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F225 Sittings of Tribunal

F2253

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F225 Procedure of Tribunal

F2254

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C12SCHEDULE 8 Provisions Capable of Inclusion in Company Insolvency Rules

Section 411.

Annotations:

Modifications etc. (not altering text)

C12

Sch. 8 applied (with modifications) (S.) (6.4.2001 to the extent that that Sch. does not apply to voluntary arrangements or administrations within the meaning of Pts. I, II of the Act) by S.S.I. 2001/128, reg. 4(1), Sch. 2

Courts

1

Provision for supplementing, in relation to the insolvency or winding up of companies, any provision made by or under section 117 of this Act (jurisdiction in relation to winding up).

2

1

Provision for regulating the practice and procedure of any court exercising jurisdiction for the purposes of Parts I to VII of this Act or F173the Companies Acts so far as relating to, and to matters connected with or arising out of, the insolvency or winding up of companies, being any provision that could be made by rules of court.

F792

Rules made by virtue of this paragraph about the consequence of failure to comply with practice or procedure may, in particular, include provision about the termination of administration.

Notices, etc.

3

Provision requiring notice of any proceedings in connection with or arising out of the insolvency or winding up of a company to be given or published in the manner prescribed by the rules.

4

Provision with respect to the form, manner of serving, contents and proof of any petition, application, order, notice, statement or other document required to be presented, made, given, published or prepared under any enactment or subordinate legislation relating to, or to matters connected with or arising out of, the insolvency or winding up of companies.

5

Provision specifying the persons to whom any notice is to be given.

F3385A

Provision for enabling a creditor of a company to elect to be, or to cease to be, an opted-out creditor in relation to an office-holder of the company (within the meaning of section 248A), including, in particular, provision—

a

for requiring an office-holder to provide information to creditors about how they may elect to be, or cease to be, opted-out creditors;

b

for deeming an election to be, or cease to be, an opted-out creditor in relation to a particular office-holder of a company to be such an election also in relation to any other office-holder of the company.

Registration of voluntary arrangements

6

Provision for the registration of voluntary arrangements approved under Part I of this Act, including provision for the keeping and inspection of a register.

Provisional liquidator

7

Provision as to the manner in which a provisional liquidator appointed under section 135 is to carry out his functions.

Conduct of insolvency

8

Provision with respect to the certification of any person as, and as to the proof that a person is, the liquidator, administrator or administrative receiver of a company.

provision as to the manner of proving the decisions of a meeting.

F3879A

Provision about how a company's creditors may nominate a person to be liquidator, including in the case of a voluntary winding up provision conferring functions on the directors of the company.

10

b

serves a purpose in relation to administration similar to a purpose that may be served by the rules in relation to winding up by virtue of a provision of this Schedule.

Financial provisions

15

Provision as to the amount, or manner of determining the amount, payable to the liquidator, administrator or administrative receiver of a company or a special manager appointed under section 177, by way of remuneration for the carrying out of functions in connection with or arising out of the insolvency or winding up of a company.

16

Provision with respect to the manner in which moneys received by the liquidator of a company in the course of carrying out his functions as such are to be invested or otherwise handled and with respect to the payment of interest on sums which, in pursuance of rules made by virtue of this paragraph, have been paid into the Insolvency Services Account.

F8316A

Provision enabling the Secretary of State to set the rate of interest paid on sums which have been paid into the Insolvency Services Account.

17

Provision as to the fees, costs, charges and other expenses that may be treated as the expenses of a winding up.

18

Provision as to the fees, costs, charges and other expenses that may be treated as properly incurred by the administrator or administrative receiver of a company.

19

Provision as to the fees, costs, charges and other expenses that may be incurred for any of the purposes of Part I of this Act or in the administration of any voluntary arrangement approved under that Part.

Provision imposing requirements in connection with the carrying out of functions under section F3357A of the M13Company Directors Disqualification Act 1986 (including, in particular, requirements with respect to the making of periodic returns).

General

27

Provision conferring power on the Secretary of State F172or the Treasury to make regulations with respect to so much of any matter that may be provided for in the rules as relates to the carrying out of the functions of the liquidator, administrator or administrative receiver of a company.

28

Provision conferring a discretion on the court.

29

Provision conferring power on the court to make orders for the purpose of securing compliance with obligations imposed by or under F84section 47, 66, 131, 143(2) or 235 of, or paragraph 47 of Schedule B1 to, this Act or section 7(4) of the Company Directors Disqualification Act 1986.

30

Provision making non-compliance with any of the rules a criminal offence.

31

Provision making different provision for different cases or descriptions of cases, including different provisions for different areas.

SCHEDULE 9 Provisions Capable of Inclusion in Individual Insolvency Rules

Section 412.

Courts

1

Provision with respect to the arrangement and disposition of the business under F144Parts 7A to 11 of this Act of courts having jurisdiction for the purpose of those Parts, including provision for the allocation of proceedings under those Parts to particular courts and for the transfer of such proceedings from one court to another.

2

Provision for enabling a registrar in bankruptcy of the High Court F261... to exercise such of the jurisdiction conferred for those purposes on the High Court F230... as may be prescribed.

3

Provision for regulating the practice and procedure of any court exercising jurisdiction for the purposes of those Parts, being any provision that could be made by rules of court.

4

Provision conferring rights of audience, in courts exercising jurisdiction for the purposes of those Parts, on the official receiver and on solicitors.

F276Adjudicators

Annotations:

Amendments (Textual)

F276

Sch. 9 para. 4A 4B and crossheading inserted (25.4.2013 for specified purposes, 6.4.2016 in so far as not already in force) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(1)(i)(3), Sch. 19 para. 65(2); S.I. 2016/191, art. 2 (with art. 3)

4A

Provision for regulating the practice and procedure of adjudicators in the discharge of functions for the purposes of Part 9 of this Act.

4B

Provision about the form and content of a bankruptcy application (including an application for a review of an adjudicator's determination).

F264Appeals against determinations by adjudicators

Annotations:

Amendments (Textual)

F264

Sch. 9 para. 4C and crossheading inserted (25.4.2013 for specified purposes, 6.4.2016 in so far as not already in force) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(1)(i)(3), Sch. 19 para. 65(3); S.I. 2016/191, art. 2 (with art. 3)

4C

Provision about the making and determining of appeals to the court against a determination by an adjudicator, including provision—

a

enabling the court to make a bankruptcy order on such an appeal, and

b

about where such appeals lie.

Notices, etc.

5

Provision requiring notice of any proceedings under F145Parts 7A to 11 of this Act or of any matter relating to or arising out of a proposal under Part VIII or a bankruptcy to be given or published in the prescribed manner.

6

Provision with respect to the form, manner of serving, contents and proof of any petition, application, order, notice, statement or other document required to be presented, made, given, published or prepared under any enactment contained in F146Parts 7A to 11 or subordinate legislation under those Parts or Part XV (including provision requiring prescribed matters to be verified by affidavit).

7

Provision specifying the persons to whom any notice under Parts VIII to XI is to be given.

F4317A

Provision for enabling a creditor of an individual to elect to be, or to cease to be, an opted-out creditor in relation to an office-holder for the individual (within the meaning of section 383A), including, in particular, provision—

a

for requiring an office-holder to provide information to creditors about how they may elect to be, or cease to be, opted-out creditors;

b

for deeming an election to be, or cease to be, an opted-out creditor in relation to a particular office-holder for an individual to be such an election also in relation to any other office-holder for the individual.

F143Debt relief orders

Annotations:

Amendments (Textual)

F143

Sch. 9 paras. 7A-7E and cross-headings inserted (24.2.2009 for certain purposes otherwise 6.4.2009) by Tribunals, Courts and Enforcement Act 2007 (c. 15), ss. 108(3), 148(5), Sch. 20 para. 14(5); S.I. 2009/382, art. 2

F4317A

Provision as to the manner in which the official receiver is to carry out his functions under Part 7A.

7B

Provision as to the manner in which any requirement that may be imposed by the official receiver on a person under Part 7A is to take effect.

7C

Provision modifying the application of Part 7A in relation to an individual who has died at a time when a moratorium period under a debt relief order applies in relation to him.

Debt relief restrictions orders and undertakings

7D

Provision about debt relief restrictions orders, interim orders and undertakings, including provision about evidence.

Register of debt relief orders and debt relief restrictions orders etc

7E

Provision about the register required to be maintained by section 251W and the information to be contained in it, including provision—

a

enabling the amalgamation of the register with another register;

b

enabling inspection of the register by the public.

Registration of voluntary arrangements

8

Provision for the registration of voluntary arrangements approved under Part VIII of this Act, including provision for the keeping and inspection of a register.

F858AOfficial receiver acting on voluntary arrangement

Provision about the official receiver acting as nominee or supervisor in relation to a voluntary arrangement under Part VIII of this Act, including—

a

provision requiring the official receiver to act in specified circumstances;

b

provision about remuneration;

c

provision prescribing terms or conditions to be treated as forming part of a voluntary arrangement in relation to which the official receiver acts as nominee or supervisor;

d

provision enabling those terms or conditions to be varied or excluded, in specified circumstances or subject to specified conditions, by express provision in an arrangement.

Interim receiver

9

Provision as to the manner in which an interim receiver appointed under section 286 is to carry out his functions, including any such provision as is specified in relation to the trustee of a bankrupt’s estate in paragraph 21 or 27 below.

Receiver or manager

F39910

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Administration of individual insolvency

11

Provision with respect to the certification of the appointment of any person as trustee of a bankrupt’s estate and as to the proof of that appointment.

F37111A

1

Provision about the making of decisions by creditors, including provision—

a

prescribing particular procedures by which creditors may make decisions;

b

authorising the use of other procedures for creditors to make decisions, if those procedures comply with prescribed requirements.

2

Provision under sub-paragraph (1) may in particular include provision about—

a

how creditors may request that a creditors' meeting be held,

b

the rights of creditors and others to be given notice of, and participate in, procedures,

c

creditors' rights to vote in procedures,

d

the period within which any right to participate or vote is to be exercised,

e

the proportion of creditors that must vote for a proposal for it to be approved,

f

how the value of any debt should be determined,

g

the time at which decisions taken by a procedure are to be treated as having been made.

12

The following provision with respect to meetings of creditors—

a

provision as to the manner of summoning a meeting (including provision as to how any power to require a meeting is to be exercised, provision as to the manner of determining the value of any debt for the purposes of any such power and provision making the exercise of any such power subject to the deposit of a sum sufficient to cover the expenses likely to be incurred in summoning and holding a meeting);

b

provision specifying the time and place at which a meeting may be held and the period of notice required for a meeting;

c

provision as to the procedure to be followed at such a meeting (including the manner in which decisions may be reached by a meeting and the manner in which the value of any vote at a meeting is to be determined);

d

provision for requiring a bankrupt or debtor to attend a meeting;

e

provision creating, in the prescribed circumstances, a presumption that a meeting has been duly summoned and held; and

f

provision as to the manner of proving the decisions of a meeting.

F21812A

Provision about how a bankrupt's creditors may appoint a person as trustee.

13

Provision as to the F306establishment, functions, membership and proceedings of a creditors’ committee F394provided for by section 301.

14

Provision as to the manner in which any requirement that may be imposed on a person under Parts VIII to XI of this Act by the official receiver, the trustee of a bankrupt’s estate or a special manager appointed under section 370 is to be so imposed and, in the case of any requirement imposed under section 305(3) (information etc. to be given by the trustee to the official receiver), provision conferring power on the court to make orders for the purpose of securing compliance with that requirement.

15

Provision as to the manner in which any requirement imposed by virtue of section 310(3) (compliance with income payments order) is to take effect.

16

Provision as to the terms and conditions that may be included in a charge under section 313 (dwelling house forming part of bankrupt’s estate).

17

Provision as to the debts that may be proved in any bankruptcy, as to the manner and conditions of proving a debt and as to the manner and expenses of establishing the value of any debt or security.

18

Provision with respect to the manner of the distribution of a bankrupt’s estate, including provision with respect to unclaimed funds and dividends.

F27718A

Provision for a creditor who has not proved a small debt to be treated as having done so for purposes relating to the distribution of a bankrupt's estate (and for provisions of, or contained in legislation made under, this Act to apply accordingly).

19

Provision modifying the application of Parts VIII to XI of this Act in relation to a debtor or bankrupt who has died.

Financial provisions

20

Provision as to the amount, or manner of determining the amount, payable to an interim receiver, the trustee of a bankrupt’s estate or a special manager appointed under section 370 by way of remuneration for the performance of functions in connection with or arising out of the bankruptcy of any person.

21

Provision with respect to the manner in which moneys received by the trustee of a bankrupt’s estate in the course of carrying out his functions as such are to be F86invested or otherwise handled and with respect to the payment of interest on sums which, in pursuance of rules made by virtue of this paragraph, have been paid into the Insolvency Services Account.

F8721A

Provision enabling the Secretary of State to set the rate of interest paid on sums which have been paid into the Insolvency Services Account.

22

Provision as to the fees, costs, charges and other expenses that may be treated as the expenses of a bankruptcy.

23

Provision as to the fees, costs, charges and other expenses that may be incurred for any of the purposes of Part VIII of this Act or in the administration of any voluntary arrangement approved under that Part.

provision enabling inspection of that register by the public.

General

30

Provision conferring power on the Secretary of State to make regulations with respect to so much of any matter that may be provided for in the rules as relates to the carrying out of the functions of an interim receiver appointed under section 286F307... or of a trustee of a bankrupt’s estate.

31

Provision conferring a discretion on the court.

32

Provision making non-compliance with any of the rule a criminal offence.

33

Provision making different provision for different cases including different provision for different areas.

C13 C14 C37 C38 C39 C114 SCHEDULE 10 Punishment of Offences under this Act

Section 430.

Annotations:

Modifications etc. (not altering text)

C13

Sch. 10 modified by Building Societies Act 1986 (c. 53, SIF 16), ss. 54(3)(a)(5)(a), 90, 126(3), Sch. 15 (as amended (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 2(2))

Sch. 10 modified (1.2.1993) by Friendly Societies Act 1992 (c. 40), s. 23, Sch. 10, Pt. I para.1 (with ss. 7(5), 93(4)); S.I. 1993/16, art. 2, Sch.3

Sch. 10 applied (1.2.1993) by Friendly Societies Act 1992 (c. 40), ss. 21(1), 22, 23, Sch. 10, Pt. I para.1 (with ss. 7(5), 93(4)); S.I. 1993/16, art. 2, Sch.3

C14

Sch. 10 applied (with modifications) (1.12.1997) by 1986 c. 53, Sch. 15A, para. 1(2) (as inserted by 1997 c. 32, s. 39(2), Sch. 6); S.I. 1997/2668, art. 2, Sch. Pt. I)

Sch. 10 applied (with modifications) (S.) (6.4.2001 to the extent as mentioned) by S.S.I. 2001/128, reg. 4, Sch. 2, Sch. 3

C37

Sch. 10 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 103, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 2

C38

Sch. 10 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3 (as amended (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5))

C39

Sch. 10 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), {ss. 145 table 2}, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3

C114

Sch. 10 applied (with modifications) (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), Pt. 3reg. 1, Sch. 2 paras. 3, 5 Table (with reg. 24)

C114

F89Note:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section of Act creating offence	General nature of offence	Mode of prosecution	Punishment	Daily default fine (where applicable)
F90 6A(1).	False representation or fraud for purpose of obtaining members’ or creditors’ approval of proposed voluntary arrangement.	1. On indictment. 2. Summary. 7 years or a fine, or both. 6 months or the statutory maximum, or both.
F91. . .	F91. . .	F91. . .	F91. . .
F91. . .	F91. . .	F91. . .	F91. . .	F91. . .
F91. . .	F91. . .	F91. . .	F91. . .	F91. . .
F91. . .	F91. . .	F91. . .	F91. . .	F91. . .
F91. . .	F91. . .	F91. . .	F91. . .	F91. . .
F91. . .	F91. . .	F91. . .	F91. . .	F91. . .
F91. . .	F91. . .	F91. . .	F91. . .	F91. . .
F91. . .	F91. . .	F91. . .	F91. . .	F91. . .
30	Body corporate acting as receiver.	1.On indictment 2.Summary.	A fine. The statutory maximum.
31	F92. . . bankrupt F147or person in respect of whom a debt relief order is made acting as receiver or manager.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
38(5)	Receiver failing to deliver accounts to registrar.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
39(2)	Company and others failing to state in correspondence that receiver appointed.	Summary.	One-fifth of the statutory maximum.
43(6)	Administrative receiver failing to file F182copy of order permitting disposal of charged property.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
45(5)	Administrative receiver failing to file notice of vacation of office.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
46(4)	Administrative receiver failing to give notice of his appointment.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
47(6)	Failure to comply with provisions relating to statement of affairs, where administrative receiver appointed.	1.On indictment 2.Summary.	A fine. The statutory maximum.	One-tenth of the statutory maximum.
48(8)	Administrative receiver failing to comply with requirements as to his report.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
51(4)	Body corporate or Scottish firm acting as receiver.	1.On indictment 2.Summary.	A fine. The statutory maximum.
51(5)	Undischarged bankrupt acting as receiver (Scotland).	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
53(2)	Failing to deliver to registrar copy of instrument of appointment of receiver.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
54(3)	Failing to deliver to registrar the court’s interlocutor appointing receiver.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
61(7)	Receiver failing to send to registrar certified copy of court order authorising disposal of charged property.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
62(5)	Failing to give notice to registrar of cessation or removal of receiver.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
64(2)	Company and others failing to state on correspondence etc. that receiver appointed.	Summary.	One-fifth of the statutory maximum.
65(4)	Receiver failing to send or publish notice of his appointment.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
66(6)	Failing to comply with provisions concerning statement of affairs, where receiver appointed.	1.On indictment 2.Summary.	A fine. Thestatutory maximum.	One-tenth of the statutory maximum.
67(8)	Receiver failing to comply with requirements as to his report.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
85(2)	Company failing to give notice in Gazette of resolution for voluntary winding up.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
89(4)	Director making statutory declaration of company’s solvency without reasonable grounds for his opinion.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum.
89(6)	Declaration under section 89 not delivered to registrar within prescribed time.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
F193 92A(2)	Liquidator failing to send progress report to members F337...	Summary	Level 3 on the standard scale
C15~~F39393(3)~~	~~F393Liquidator failing to summon general meeting of company at each year’s end.~~	~~F393Summary.~~	~~F393One-fifth of the statutory maximum.~~
F32494(4)	Liquidator failing to send to company members a copy of account of winding up	Summary.	Level 3 on the standard scale
F32494(5)	Liquidator failing to send to registrar a copy of account of winding up	Summary.	Level 3 on the standard scale	One tenth of level 3 on the standard scale
95(8)	Liquidator failing to comply with F354s. 95(1) to (4A), where company insolvent.	Summary.	The statutory maximum.
F356. . .	F356. . .	F356. . .	F356. . .
99(3)	Directors failing to F388send statement in prescribed form to creditors.	1.On indictment 2.Summary.	A fine. Thestatutory maximum.
F194104A(2)	Liquidator failing to send progress report to members and creditors F376...	Summary	Level 3 on the standard scale
C16~~F415105(3)~~	~~F415Liquidator failing to summon company general meeting and creditors’ meeting at each year’s end.~~	~~F415Summary.~~	~~F415One-fifth of the statutory maximum.~~
F427106(5)	Liquidator failing to send to company members and creditors a copy of account of winding up	Summary	Level 3 on the standard scale
F427106(6)	Liquidator failing to send to registrar a copy of account of winding up	Summary	Level 3 on the standard scale	One tenth of level 3 on the standard scale.
109(2)	Liquidator failing to publish notice of his appointment.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
114(4)	Directors exercising powers in breach of s. 114, where no liquidator.	Summary.	The statutory maximum.
131(7)	Failing to comply with requirements as to statement of affairs, where liquidator appointed.	1.On indictment 2.Summary.	A fine. The statutory maximum.	One-tenth of the statutory maximum.
164	Giving, offering etc. corrupt inducement affecting appointment of liquidator.	1.On indictment 2.Summary.	A fine. The statutory maximum.
166(7)	Liquidator failing to comply with requirements of s. 166 in creditors’ voluntary winding up.	Summary.	The statutory maximum.
188(2)	Default in compliance with s. 188 as to notification that company being wound up.	Summary.	One-fifth of the statutory maximum.
192(2)	Liquidator failing to notify registrar as to progress of winding up.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
201(4)	Failing to deliver to registrar F182copy of court order deferring dissolution.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
203(6)	Failing to deliver to registrar copy of directions or result of appeal under s. 203.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
204(7)	Liquidator failing to deliver to registrar copy of court order for early dissolution.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
204(8)	Failing to deliver to registrar copy of court order deferring early dissolution.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
205(7)	Failing to deliver to registrar copy of Secretary of State’s directions or court order deferring dissolution.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
206(1)	Fraud etc. in anticipation of winding up.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
206(2)	Privity to fraud in anticipation of winding up; fraud, or privity to fraud, after commmencement of winding up.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
206(5)	Knowingly taking in pawn or pledge, or otherwise receiving, company property.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
207	Officer of company entering into transaction in fraud of company’s creditors.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
208	Officer of company misconducting himself in course of winding up.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
209	Officer or contributory destroying, falsifying, etc. company’s books.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
210	Officer of company making material omission from statement relating to company’s affairs.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
211	False representation or fraud for purpose of obtaining creditors’ consent to an agreement in connection with winding up.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
216(4)	Contravening restrictions on re-use of name of company in insolvent liquadation.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
235(5)	Failing to co-operate with office-holder.	1.On indictment 2.Summary.	A fine. Thestatutory maximum	One-tenth of the statutory maximum.
F148251O(1)	False representations or omissions in making an application for a debt relief order.	1. On indictment 2. Summary	7 years or a fine, or both. 12 months or the statutory maximum, or both.
251O(2)(a)	Failing to comply with duty in connection with an application for a debt relief order.	1. On indictment 2. Summary	2 years or a fine, or both. 12 months or the statutory maximum, or both.
251O(2)(b)	False representations or omissions in connection with duty in relation to an application for a debt relief order.	1. On indictment 2. Summary	7 years or a fine, or both. 12 months or the statutory maximum, or both.
251O(4)(a)	Failing to comply with duty in connection with a debt relief order.	1. On indictment 2. Summary	2 years or a fine, or both. 12 months or the statutory maximum, or both.
251O(4)(b)	False representations or omissions in connection with a duty in relation to a debt relief order.	1. On indictment 2. Summary	7 years or a fine, or both. 12 months or the statutory maximum, or both.
251P(1)	Failing to deliver books, records and papers to official receiver, concealing or destroying them or making false entries in them by person in respect of whom a debt relief order is made.	1. On indictment 2. Summary	7 years or a fine, or both. 12 months or the statutory maximum, or both.
251P(2)	Person in respect of whom debt relief order is made doing anything falling within paragraphs (c) to (e) of section 251P(1) during the period of 12 months ending with the application date or doing anything falling within paragraphs (b) to (e) of section 251P(1) after that date but before the effective date.	1. On indictment 2. Summary	7 years or a fine, or both. 12 months or the statutory maximum, or both.
251Q(1)	Fraudulent disposal of property by person in respect of whom a debt relief order is made.	1. On indictment 2. Summary	2 years or a fine, or both. 12 months or the statutory maximum, or both.
251R(1)	Disposal of property that is not paid for by person in respect of whom a debt relief order is made.	1. On indictment 2. Summary	7 years or a fine, or both. 12 months or the statutory maximum, or both.
251R(2)	Obtaining property in respect of which money is owed by a person in respect of whom a debt relief order is made.	1. On indictment 2. Summary	7 years or a fine, or both. 12 months or the statutory maximum, or both.
251S(1)	Person in respect of whom a debt relief order is made obtaining credit or engaging in business without disclosing his status or name.	1. On indictment 2. Summary	2 years or a fine, or both. 12 months or the statutory maximum, or both.
F93 262A(1).	False representation or fraud for purpose of obtaining creditors’ approval of proposed voluntary arrangement.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
F398263O	False representations or omissions in connection with a bankruptcy application.	1 On indictment 2 Summary	1 7 years or a fine, or both. 2 12 months or the statutory maximum, or both.
353(1)	Bankrupt failing to disclose property or disposals to official receiver or trustee.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
354(1)	Bankrupt failing to deliver property to, or concealing property from, official receiver or trustee.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
354(2)	Bankrupt removing property which he is required to deliver to official receiver or trustee.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
354(3)	Bankrupt failing to account for loss of substantial part of property.	1.On indictment 2.Summary.	2years or a fine, or both. 6 months or the statutory maximum, or both.
355(1)	Bankrupt failing to deliver books, papers and records to official receiver or trustee.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
355(2)	Bankrupt concealing, destroying etc. books, papers or records, or making false entries in them.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
355(3)	Bankrupt disposing of, or altering, books, papers or records relating to his estate or affairs.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
356(1)	Bankrupt making material omission in statement relating to his affairs.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
356(2)	Bankrupt making false statement, or failing to inform trustee, where false debt proved.	1.On indictment 2.Summary.	7 ears or a fine, or both. 6 months or the statutory maximum, or both.
357	Bankrupt fraudulently disposing of property.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
358	Bankrupt absconding with property he is required to deliver to official receiver or trustee.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
359(1)	Bankrupt disposing of property obtained on credit and not paid for.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
359(2)	Obtaining property in respect of which money is owed by a bankrupt.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
360(1)	Bankrupt obtaining credit or engaging in business without disclosing his status or name in which he was made bankrupt.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
360(3)	Person made bankrupt in Scotland or Northern Ireland obtaining credit, etc. in England and Wales.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
F94. . .	F94. . .	F94. . .	F94. . .
F94. . .	F94. . .	F94. . .	F94. . .
389	Acting as insolvency practitioner when not qualified.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
429(5)	Contravening s. 429 in respect of disabilities imposed by county court on revocation of administration order.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
F95Sch. A1, para. 9(2) .	Directors failing to notify nominee of beginning of moratorium.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
F95Sch. A1, para. 10(3).	Nominee failing to advertise or notify beginning of moratorium.	Summary.	One-fifth of the statutory maximum.
F95Sch. A1, para. 11(2).	Nominee failing to advertise or notify end of moratorium.	Summary.	One-fifth of the statutory maximum.
F95Sch. A1, para. 16(2).	Company and officers failing to state in correspondence etc. that moratorium in force.	Summary.	One-fifth of the statutory maximum.
F95Sch. A1, para. 17(3)(a).	Company obtaining credit without disclosing existence of moratorium.	1.On indictment 2.Summary.	A fine. The statutory maximum.
F95Sch. A1, para. 17(3)(b).	Obtaining credit for company without disclosing existence of moratorium.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
F95Sch. A1, para. 18(3)(a).	Company disposing of property otherwise than in ordinary way of business.	1.On indictment 2.Summary.	A fine. The statutory maximum.
F95Sch. A1, para. 18(3)(b).	Authorising or permitting disposal of company property.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
F95Sch. A1, para. 19(3)(a).	Company making payments in respect of liabilities existing before beginning of moratorium.	1.On indictment 2.Summary.	A fine. Thestatutory maximum.
F95Sch. A1, para. 19(3)(b).	Authorising or permitting such a payment.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
F95Sch. A1, para. 20(9).	Directors failing to send to registrar F182copy of court order permitting disposal of charged property.	Summary.	One-fifth of the statutory maximum.
F95Sch. A1, para. 22(1).	Company disposing of charged property.	1.On indictment 2.Summary.	A fine. Thestatutory maximum.
F95Sch. A1, para. 22(2).	Authorising or permitting such a disposal.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
F95Sch. A1, para. 23(1)(a).	Company entering into market contract, etc.	1.On indictment 2.Summary.	A fine. Thestatutory maximum.
F95Sch. A1, para. 23(1)(b).	Authorising or permitting company to do so.	1.On indictment 2.Summary.	2 years or a fine, or both. 6 months or the statutory maximum, or both.
F95Sch. A1, para. 25(6).	Nominee failing to give notice of withdrawal of consent to act.	Summary.	One-fifth of the statutory maximum.
F95Sch. A1, para. 34(3).	Nominee failing to give notice of extension of moratorium.	Summary.	One-fifth of the statutory maximum.
F95Sch. A1, para. 41(2).	Fraud or privity to fraud in anticipation of moratorium.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
F95Sch. A1, para. 41(3).	Fraud or privity to fraud in anticipation of moratorium.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
F95Sch. A1, para. 41(7).	Knowingly taking in pawn or pledge, or otherwise receiving, company property.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
F95Sch. A1, para. 42(1).	False representation or fraud for purpose of obtaining or extending moratorium.	1.On indictment 2.Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.
F96Sch. B1, para. 18(7).	Making false statement in statutory declaration where administrator appointed by holder of floating charge.	1. On indictment. 2. Summary.	2 years, or a fine or both. 6 months, or the statutory maximum or both.
F96Sch. B1, para. 20.	Holder of floating charge failing to notify administrator or others of commencement of appointment.	1. On indictment. 2. Summary.	2 years, or a fine or both. 6 months, or the statutory maximum or both.	One-tenth of the statutory maximum.
F96Sch. B1, para. 27(4).	Making false statement in statutory declaration where appointment of administrator proposed by company or directors.	1. On indictment. 2. Summary.	2 years, or a fine or both. 6 months, or the statutory maximum or both.
F96Sch. B1, para. 29(7).	Making false statement in statutory declaration where administrator appointed by company or directors.	1. On indictment. 2. Summary.	2 years, or a fine or both. 6 months, or the statutory maximum or both.
F96Sch. B1, para. 32.	Company or directors failing to notify administrator or others of commencement of appointment.	1. On indictment. 2. Summary.	2 years, or a fine or both. 6 months, or the statutory maximum or both.	One-tenth of the statutory maximum.
F96Sch. B1, para. 45(2).	Administrator, company or officer failing to state in business document that administrator appointed.	Summary.	One-fifth of the statutory maximum.
F96Sch. B1, para. 46(9).	Administrator failing to give notice of his appointment.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
F96Sch. B1, para. 48(4).	Failing to comply with provisions about statement of affairs where administrator appointed.	1. On indictment. 2. Summary.	A fine. The statutory maximum.	One-tenth of the statutory maximum.
F96Sch. B1, para. 49(7).	Administrator failing to send out statement of his proposals.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
F96Sch. B1, para. 51(5).	Administrator failing to F408seek creditors' decision.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
F96Sch. B1, para. 53(3).	Administrator failing to report decision taken F347by creditors.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
F96Sch. B1, para. 54(7).	Administrator failing to report F348creditors' decision on revised proposal.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
F96Sch. B1, para. 56(2).	Administrator failing to F274seek creditors' decision.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
F96Sch. B1, para. 71(6).	Administrator failing to file court order enabling disposal of charged property.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
F96Sch. B1, para. 72(5).	Administrator failing to file court order enabling disposal of hire-purchase property.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
F96Sch. B1, para. 77(3).	Administrator failing to notify Registrar of Companies of automatic end of administration.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
F96Sch. B1, para. 78(6).	Administrator failing to give notice of extension by consent of term of office.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
F96Sch. B1, para. 80(6).	Administrator failing to give notice of termination of administration where objective achieved.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
F96Sch. B1, para. 84(9).	Administrator failing to comply with provisions where company moves to dissolution.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
F96Sch. B1, para. 86(3).	Administrator failing to notify Registrar of Companies where court terminates administration.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
F96Sch. B1, para. 89(3).	Administrator failing to give notice on ceasing to be qualified.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
F409. . .	F409. . .	F409. . .	F409. . .

SCHEDULE 11 Transitional Provisions and Savings

Section 437.

Part I Company Insolvency and Winding Up

Administration orders

1

Where any right to appoint an administrative receiver of a company is conferred by any debentures or floating charge created before the appointed day, the conditions precedent to the exercise of that right are deemed to include the presentation of a petition applying for an administration order to be made in relation to the company.

2

“Administrative receiver” here has the meaning assigned by section 251.

5

The liquidator may employ a solicitor to assist him in the carrying out of his functions without the permission of the committee of inspection; but if he does so employ a solicitor he shall inform the committee of inspection that he has done so.

Winding up under supervision of the court

Subject to the following provisions of this Part of this Schedule, so much of this Act as replaces Part III of the M17Insolvency Act 1985 does not apply in relation to any case in which a petition in bankruptcy was presented, or a receiving order or adjudication in bankruptcy was made, before the appointed day.

2

In relation to any such case as is mentioned above, the enactments specified in Schedule 8 to that Act, so far as they relate to bankruptcy, and those specified in Parts III and IV of Schedule 10 to that Act, so far as they so relate, have effect without the amendments and repeals specified in those Schedules.

3

Where any subordinate legislation made under an enactment referred to in sub-paragraph (2) is in force immediately before the appointed day, that subordinate legislation continues to have effect on and after that day in relation to any such case as is mentioned in sub-paragraph (1).

11

1

In relation to any such case as is mentioned in paragraph 10(1) the references in any enactment or subordinate legislation to a petition, order or other matter which is provided for under the M18Bankruptcy Act 1914 and corresponds to a petition, order or other matter provided for under provisions of this Act replacing Part III of the Insolvency Act 1985 continue on and after the appointed day to have effect as references to the petition, order or matter provided for by the Act of 1914; but otherwise those references have effect on and after that day as references to the petition, order or matter provided for by those provisions of this Act.

2

Without prejudice to sub-paragraph (1), in determining for the purposes of section 279 of this Act (period of bankruptcy) or paragraph 13 below whether any person was an undischarged bankrupt at a time before the appointed day, an adjudication in bankruptcy and an annulment of a bankruptcy under the Act of 1914 are to be taken into account in the same way, respectively, as a bankruptcy order under the provisions of this Act replacing Part III of the Insolvency Act 1985 and the annulment under section 282 of this Act of such an order.

12

Transactions entered into before the appointed day have effect on and after that day as if references to acts of bankruptcy in the provisions for giving effect to those transactions continued to be references to acts of bankruptcy within the meaning of the Bankruptcy Act 1914, but as if such acts included failure to comply with a statutory demand served under section 268 of this Act.

Discharge from old bankruptcy

13

1

Where a person—

a

was adjudged bankrupt before the appointed day or is adjudged bankrupt on or after that day on a petition presented before that day, and

b

that person was not an undischarged bankrupt at any time in the period of 15 years ending with the adjudication,

2

References above to setting aside a transaction include the making of any order which varies or reverses any effect of a transaction.

Part IV Insolvency Practitioners

21

Where an individual began to act as an insolvency practitioner in relation to any person before the appointed day, nothing in section 390(2) or (3) prevents that individual from being qualified to act as an insolvency practitioner in relation to that person.

Part V General Transitional Provisions and Savings

Interpretation for this Part

22

In this Part of this Schedule, “the former enactments” means so much of F181the Companies Act 1985 as is repealed and replaced by this Act, the M23Insolvency Act 1985 and the other enactments repealed by this Act.

General saving for past acts and events

23

So far as anything done or treated as done under or for the purposes of any provision of the former enactments could have been done under or for the purposes of the corresponding provision of this Act, it is not invalidated by the repeal of that provision by has effect as if done under or for the purposes of the corresponding provision; and any order, regulation, rule or other instrument made or having effect under any provision of the former enactments shall, insofar as its effect is preserved by this paragraph, be treated for all purposes as made and having effect under the corresponding provision.

Periods of time

24

Where any period of time specified in a provision of the former enactments is current immediately before the appointed day, this Act has effect as if the corresponding provision had been in force when the period began to run; and (without prejudice to the foregoing) any period of time so specified and current is deemed for the purposes of this Act—

a

to run from the date or event from which it was running immediately before the appointed day, and

b

to expire (subject to any provision of this Act for its extension) whenever it would have expired if this Act had not been passed;

and any rights, priorities, liabilities, reliefs, obligations, requirements, powers, duties or exemptions dependent on the beginning, duration or end of such period as above mentioned shall be under this Act as they were or would have been under the former enactments.

Internal cross-references in this Act

25

Where in any provision of this Act there is a reference to another such provision, and the first-mentioned provision operates, or is capable of operating, in relation to things done or omitted, or events occurring or not occurring, in the past (including in particular past act of compliance with any enactment, failures of compliance, contraventions, offences and convictions of offences), the reference to the other provision is to be read as including a reference to the corresponding provision of the former enactments.

Punishment of offences

26

1

Offences committed before the appointed day under any provision of the former enactments may, notwithstanding any repeal by this Act, be prosecuted and punished after that day as if this Act had not passed.

2

A contravention of any provision of the former enactments committed before the appointed day shall not be visited with any severer punishment under or by virtue of this Act than would have been applicable under that provision at the time of the contravention; but where an offence for the continuance of which a penalty was provided has been comitted under any provision of the former enactments, proceedings may be taken under this Act in respect of the continuance of the offence on and after the appointed day in the like manner as if the offence had been committed under the corresponding provision of this Act.

References elsewhere to the former enactments

27

1

A reference in any enactment, instrument or document (whether express or implied, and in whatever phraseology) to a provision of the former enactments (including the corresponding provision of any yet earlier enactment) is to be read, where necessary to retain for the enactment, instrument or document the same force and effect as it would have had but for the passing of this Act, as, or as including, a reference to the corresponding provision by which it is replaced in this Act.

2

The generality of the preceding sub-paragraph is not affected by any specific conversion of references made by this Act, nor by the inclusion in any provision of this Act of a reference (whether express or implied, and in whatever phraseology) to the provision of the former enactments corresponding to that provision, or to a provision of the former enactments which is replaced by a corresponding provision of this Act.

Saving for power to repeal provisions in section 51

28

The Secretary of State may by order in a statutory instrument repeal subsections (3) to (5) of section 51 of this Act and the entries in Schedule 10 relating to subsections (4) and (5) of that section.

Saving for Interpretation Act 1978 ss. 16, 17

29

Nothing in this Schedule is to be taken as prejudicing sections 16 and 17 of the M24Interpretation Act 1978 (savings from, and effect of, repeals); and for the purposes of section 17(2) of that Act (construction of references to enactments repealed and replaced, etc.), so much of section 18 of the M25Insolvency Act 1985 as is replaced by a provision of this Act is deemed to have been repealed by this Act and not by the M26Company Directors Disqualification Act 1986.

SCHEDULE 12 Enactments Repealed

Section 438

Chapter	Short title	Extent of repeal
1970 c. 8.	The Insolvency Services (Accounting and Investment) Act 1970.	The whole Act.
1976 c. 60	The Insolvency Act 1976.	Section 3.
1985 c. 6.	The Companies Act 1985.	In section 463(4), the words “Subject to section 617”.
		Sections 467 to 485.
		In section 486, in the definition of “company” the words “other than in Chapter II of this Part”; and the definitions of “instrument of appointment”, “prescribed”, “receiver” and “register of charges”.
		Sections 488 to 650.
		Sections 659 to 664.
		Sections 665 to 674.
		Section 709(4).
		Section 710(4).
		Section 724.
		Schedule 16.
		In Schedule 24, the entries relating to section 467; all entries thereafter up to and including section 641(2); and the entry relating to section 710(4).
1985 c. 65.	The Insolvency Act 1985.	Sections 1 to 11.
		Section 15.
		Section 17.
		Section 19.
		Sections 20 to 107.
		Section 108(1) and (3) to (7).
		Sections 109 to 211.
		Sections 212 to 214.
		Section 216.
		Section 217(1) to (3).
		Sections 221 to 234.
		In section 235, subsections (2) to (5).
		In section 236, subsections (3) to (5).
		In Schedule 1, paragraphs 1 to 4, and sub-paragraph (4) of paragraph 5.
		Schedules 3 to 5.
		In Schedule 6, paragraphs 5, 6, 9, 15 to 17, 20 to 22, 25 to 44 and 48 to 52.
		Schedule 7.
		In Schedule 9, paragraphs 1 and 4 to 24.
		Schedule 10.
1985 c. 66.	The Bankruptcy (Scotland) Act 1985.	In Schedule 7, paragraphs 19 to 22.
1986 c. 44.	The Gas Act 1986.	In Schedule 7, paragraph 31.

SCHEDULE 13 Consequential Amendments of Companies Act 1985

Section 439(1)

Part I Internal and Other Section References Amended or Re-amended

Annotations:

Amendments (Textual)

F164

Sch. 13 Pt. 1: entry repealed (1.10.2009) by Companies Act 2006 (c. 46), ss. 1295, 1300(2), Sch. 16; S.I. 2008/2860, art. 4, Sch. 1 Pt. 1

F165

Sch. 13 Pt. 1: entry repealed (1.10.2009) by Companies Act 2006 (c. 46), ss. 1295, 1300(2), Sch. 16; S.I. 2008/2860, art. 4, Sch. 1 Pt. 1

F166

Sch. 13 Pt. 1: entry repealed (1.10.2009) by Companies Act 2006 (c. 46), ss. 1295, 1300(2), Sch. 16; S.I. 2008/2860, art. 4, Sch. 1 Pt. 1

F167

Sch. 13 Pt. 1: entry repealed (1.10.2009) by Companies Act 2006 (c. 46), ss. 1295, 1300(2), Sch. 16; S.I. 2008/2860, art. 4, Sch. 1 Pt. 1

F168

Sch. 13 Pt. 1: entry repealed (1.10.2009) by Companies Act 2006 (c. 46), ss. 1295, 1300(2), Sch. 16; S.I. 2008/2860, art. 4, Sch. 1 Pt. 1

F169

Sch. 13 Pt. 1: entry repealed (1.10.2009) by Companies Act 2006 (c. 46), ss. 1295, 1300(2), Sch. 16; S.I. 2008/2860, art. 4, Sch. 1 Pt. 1

F97

Entries in Pt. I of Sch. 13, relating to sections 222(4), 225 and 733(3) repealed by Companies Act 1989 (c. 40, SIF 27), ss. 212, 213(2), Sch. 24

F140

Sch. 13 Pt. 1: entries repealed (1.10.2007) by Companies Act 2006 (c. 46), ss. 1295, 1300(2), Sch. 16; S.I. 2007/2194, arts. 1(3)(a), 8, Sch 2 Pt. 1

F121

Sch. 13 Pt. 1: entry repealed (6.4.2005) by Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27), ss. 64, 65, Sch. 8; S.I. 2004/3322, art. 2(2), Sch. 2 (subject to arts. 3-13)

F170

Sch. 13 Pt. 1: entry repealed (1.10.2009) by Companies Act 2006 (c. 46), ss. 1295, 1300(2), Sch. 16; S.I. 2008/2860, art. 4, Sch. 1 Pt. 1

F171

Sch. 13 Pt. 1: entry repealed (1.10.2009) by Companies Act 2006 (c. 46), ss. 1295, 1300(2), Sch. 16; S.I. 2008/2860, art. 4, Sch. 1 Pt. 1

Section of Act	Consequential amendment or re-amendment
F164. . .	F164. . .
F165. . .	F165. . .
F166. . .	F166. . .
F167. . .	F167. . .
F168. . .	F168. . .
Section 153(3)	In paragraph (f), for “section 582” substitute “section 110 of the Insolvency Act”.
	In paragraph (g), for “Chapter II of Part II of the Insolvency Act 1985” substitute “Part I of the Insolvency Act”.
Section 156(3)	For “section 517” substitute “section 122 of the Insolvency Act”.
F169. . .	F169. . .
Section 196	For this section substitute—“196.—(1) The following applies in the case of a company registered in England and Wales, where debentures of the company are secured by a charge which, as created, was a floating charge.(2) If possession is taken, by or on behalf of the holders of any of the debentures, of any property comprised in or subject to charge, and the company is not at that time in course of being wound up, the company’s preferential debts shall be paid out of assets coming to the hands of the person taking possession in priority to any claims for princpipal or interest in respect of the debentures.(3) “Preferential debts" means the categories of debts listed in Schedule 6 to the Insolvency Act; and for the purposes of that Schedule “the relevant date” is the date of possession being taken as above mentioned.(4) Payments made under this section shall be recouped, as far as may be, out of the assets of the company available for payment of general creditors.”
F97. . .	F97. . .
F97. . .	F97. . .
F140. . .	F140. . .
Section 441(1)	For “section 13 of the Insolvency Act 1985” substitute “section 8 of the Company Directors Disqualification Act 1986”.
F121. . .	F121. . .
F140. . .	F140. . .
Section 462(5)	After “this Part” insert “and Part III of the Insolvency Act 1986”.
Section 463(2)	For “Part XX (except section 623(4))” substitute “Part IV of the Insolvency Act (except section 185)”.
Section 463(3)	For this subsection substitute—“(3) Nothing in this section derogates from the provisions of sections 53(7) and 54(6) of the Insolvency Act (attachment of floating charge on appointment of receiver), or prejudices the operation of sections 175 and 176 of that Act (payment of preferential debts in winding up)".
Section 464(6)	For “section 89 of the Insolvency Act 1985” substitute “sections 175 and 176 of the Insolvency Act”.
F170. . .	F170. . .
F171. . .	F171. . .
Section 711(2)	In paragraph (b), for “section 600” substitute “section 109 of the Insolvency Act”.
Section 733	In subsection (1), omit “295(7)”.
	F97. . .

Part II Amendement of Part XXVI (Interpretation)

In Part XXVI of the Companies Act, after section 735, insert the following section—

735A Relationship of this Act to Insolvency Act.
1
In this Act “the Insolvency Act” means the Insolvency Act 1986; and in the following provisions of this Act, namely, sections 375(1)(b), 425(6)(a), 440, 449(1)(a) and (d), 460(2), 675, 676, 677, 699(1), 728 and Schedule 21, paragraph 6(1), the words “this Act” are to be read as including Part I to VII of that Act, sections 411, 413, 414, 416 and 417 in Part XV of that Act, and also the Company Directors Disqualification Act 1986.
2
In sections 704(5), 706(1), 707(1), 708(1)(a) and (4), 710(5), 713(1), 729 and 732(3) references to the Companies Acts include Parts I to VII of the Insolvency Act, sections 411, 413, 414, 416 and 417 in Part XV of that Act, and also the Company Directors Disqualification Act 1986.
3
Subsections (1) and (2) apply unless the contrary intention appears.

SCHEDULE 14 Consequential Amendments of other Enactments

Section 439(2)

Annotations:

Amendments (Textual)

F269

Words in Sch. 14 omitted (1.10.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(7), Sch. 6 para. 2(11)(h) (with Sch. 6 para. 3); S.I. 2015/1732, art. 2(e)(i)

F98

Sch. 14: entries relating to Land Registration Act 1925 repealed (13.10.2003) by 2002 c. 9, ss. 135, 136, Sch. 13 (with s. 129, Sch. 12 para. 1); S.I. 2003/1725, art. 2

F401

Sch. 14 entries repealed (1.8.2016) by Third Parties (Rights against Insurers) Act 2010 (c. 10), s. 21(2), Sch. 4; S.I. 2016/550, art. 2

F99

Sch. 14 the entry relating to the Exchange Control Act 1947 repealed by Finance Act 1987 (c. 16, SIF 99:6), s. 72, Sch. 16 Pt. XI

F100

Sch. 14: the entries relating to the Arbitration Act 1950 repealed (31.1.1997) by 1996 c. 23, s. 107(2), Sch. 4 (with s. 81(2)); S.I. 1996/3146, arts. 3, 4, Sch. 2

F125

Sch. 14: entries relating to Licensing Act 1964 repealed (24.11.2005) by Licensing Act 2003 (c. 17), ss. 199, 201, Sch. 7 (with ss. 2(3), 15(2), 195); S.I. 2005/3056, arts. 1(2), 2(2) (with saving in art. 4)

F101

Sch. 14 the entries relating to the Income and Corporation Taxes Act 1970 repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 31

F102

Sch. 14: the entry relating to the Tribunals and Inquiries Act 1971 repealed (1.10.1992) by Tribunals and Inquiries Act 1992 (c. 53), ss. 18(2), 19(2), Sch. 4 Pt. I

F103

Sch. 14 the entry relating to the Road Traffic Act 1972 repealed by Road Traffic (Consequential Provisions) Act 1988 (c. 54, SIF 107:1), ss. 3, 5, Sch. 1 Pt. I, Sch. 4 paras. 1, 2

F104

Sch. 14 the entry relating to the Finance Act 1972 repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63: 1), s. 844, Sch. 31

F105

Sch. 14: the entries relating to the Social Security Pensions Act 1975 repealed (7.2.1994) by 1993 c. 48, ss. 188, 193(2), Sch. 5 Pt. I; S.I. 1994/86, art. 2

F106

Sch. 14: the entries relating to the Employment Protection (Consolidation) Act 1998 repealed (22.8.1996) by 1996 c. 18, ss. 242, 243, Sch. 3 Pt. I (with ss. 191-195, 202)

F107

Sch. 14 the entry relating to s.125(2) of the Employment Protection (Consolidation) Act 1978 repealed by Employment Act 1989 (c.38, SIF 43: 1), s. 29(4) Sch.7 Pt.II

F108

Sch. 14 the entries relating to the Finance Act 1981 and the Finance Act 1983 repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63: 1), s. 844, Sch. 31

Enactment	Amendment
F269. . .
Section 3(1)	For “Part III of the Insolvency Act 1985” substitute “Parts VIII to XI of the Insolvency Act 1986”.
Section 3(4)	The same amendment.
Section 11(1) and (2)	In each subsection, the same amendment.
Section 15(1)	For “section 207 of the Insolvency Act 1985” substitute “section 412 of the Insolvency Act 1986”.
Section 16	The same amendment as of section 3(1).
Section 23	The same amendment.
Section 30(1)	For the definition of “property” substitute—“"property’ has the meaning given by section 436 of the Insolvency Act 1986".
Law of Property Act 1925 (c. 20):
Section 52(2)(b)	For “section 91 or 161 of the Insolvency Act 1985” substitute “sections 178 to 180 or sections 315 to 319 of the Insolvency Act 1986”.
F98. . .
F98. . .	F98. . .
F98. . .	F98. . .
F401. . .
F401. . .	F401. . .
F401. . .	F401. . .
F401. . .	F401. . .
F99. . .
F99. . .	F99. . .
F100. . .
F100. . .	F100. . ..
Agricultural Marketing Act 1958 (c. 47):
Schedule 2	For paragraph 4 substitute—“4.—(1) A scheme shall provide for the winding up of the board, and for that purpose may apply Part V of the Insolvency Act 1986 (winding up of unregistered companies), subject to the following modifications. (2) For the purpose of sections 221, 222 and 224 of the Act of 1986, the principal place of business of the board is deemed to be the office of the board the address of which is registered by the Minister under paragraph 3 above. (3) Section 223 does not apply. (4) Section 224 applies as if the words “or any member of it as such” were omitted. (5) A petition for winding up the board may be presented by the Minister as well as by any person authorised under Part IV of the Insolvency Act 1986 to present a petition for winding up a company".
Charities Act 1960 (c. 58):
Section 30(1)	For “Companies Act 1985” substitute “Insolvency Act 1986”.
F125. . .
F125. . .	F125. . .
F125. . .	F125. . .
Industrial and Provident Societies Act 1965 (c. 12):
Section 55	For “Companies Act 1985” substitute “Insolvency Act 1986”.
Medicines Act 1968 (c. 67):
Section 72(4)	For the words from “composition or scheme” to the end of the subsection substitute “voluntary arrangement proposed for the purposes of, and approved under, Part VIII of the Insolvency Act 1986”.
F101. . .
F101. . .	F101. . .
F101. . .	F101. . .
Conveyancing and Feudal Reform (Scotland) Act 1970 (c. 35):
Schedule 3	In Standard Condition 9(2)(b), for “228 of the Insolvency Act 1985” substitute “421 of the Insolvency Act 1986”.
F102. . .
F102. . .	F102. . .
Superannuation Act 1972 (c. 11):
Section 5(2)	For “156 of the Insolvency Act 1985” substitute “310 of the Insolvency Act 1986”; and for “the said section 156” substitute “the said section 310”.
F103. . .
F103. . .	F103. . .
F104. . .
F104. . .	F104. . .
Land Charges Act 1972 (c. 61):
Section 16(2)	For “207 of the Insolvency Act 1985” substitute “412 of the Insolvency Act 1986”; and for “Part III” substitute “Parts VIII to XI”.
Matrimonial Causes Act 1973 (c. 18):
Section 39	For “section 174 of the Insolvency Act 1985” substitute “section 339 or 340 of the Insolvency Act 1986”.
Powers of Criminal Courts Act 1973 (c. 62):
Section 39(3)	In paragraph (d), for “174(10) of the Insolvency Act 1985” substitute “341(4) of the Insolvency Act 1986”.
Friendly Societies Act 1974 (c. 46):
Section 87(2)	For “Companies Act 1985” substitute “Insolvency Act 1986”.
F105. . .
Recess Elections Act 1975 (c. 66):
Section 1(2)	In the definition of “certificate of vacancy”, for “214(6)(a) of the Insolvency Act 1985” substitute “427(6)(a) of the Insolvency Act 1986”.
Policyholders Protection Act 1975 (c. 75):
Section 5(1)(a)	For “Companies Act 1985” substitute “Insolvency Act 1986”.
Section 15(1)	For “532 of the Companies Act 1985” substitute “Insolvency Act 1986”.
Section 16(1)(b)	The same amendment as of section 5(1)(a).
Development Land Tax Act 1976 (c. 24):
Section 33(1)	For “538 of the Companies Act 1985” substitute “145 of the Insolvency Act 1986”.
Restrictive Trade Practices Act 1976 (c. 34):
Schedule 1	For paragraph 9A (inserted by Insolvency Act 1985, section 217(4)) substitute—“9A. Insolvency services within the meaning of section 428 of the Insolvency Act 1986”.
F106. . .
F106. . .	F106. . .
	F106. . .
F106. . .	F106. . .
F106. . .	F106. . .
	F106. . .
F106. . .	F106. . .
F107. . .	F107. . .
F106. . .	F106. . .
	F106. . .
F106. . .	F106. . .
Credit Unions Act 1979 (c. 34):
Section 6(1)	For “517(1)(e) of the Companies Act 1985” substitute “122(1)(e) of the Insolvency Act 1986”; and for “517(1)(e) of the Act of 1985” substitute “122(1)(e) of the Act of 1986”.
Banking Act 1979 (c. 37):
Section 6(3)	In paragraph (b), for “Part XXI of the Companies Act 1985” substitute “Part V of the Insolvency Act 1986”.
Section 18	In subsection (1), for “Companies Act 1985” substitute “Insolvency Act 1986”; and in paragraph (a) of the subsection for “518” substitute “123”.
	In subsection (2), for “Companies Act 1985” substitute “Insolvency Act 1986”; and for “Part XXI” substitute “Part V”.
	In subsection (4)—in paragraph (a), for “Companies Act 1985” substitute “Insolvency Act 1986”;in paragraph (b), for “518 of the said Act of 1985” substitute “123 of the said Act 1986”; andin paragraph (c), for “Part XXI of the said Act of 1985” substitute “Part V of the said Act 1986”.
Enactment	Amendment
Section 19	In subsection (2), for paragraph (ba) substitute— “(ba) in connection with any proceedings under any provision of— (i)Part XVIII or XX of the Companies Act 1985, or (ii)Parts I to VII of the Insolvancy Act 1986 (other than sections 236 and 237)".
	In subsection (8), for paragraphs (a) and (aa) substitute— “(a) for the references in subsection (2) to Part XVIII or XX of the Companies Act 1985 and Parts I to VII of the Insolvency Act 1986, there shall be substituted references to Parts V, VI and IX of the Companies Act (Northern Ireland) 1960 (the reference to sections 236 and 237 of the Act of 1986 being disregarded)".
Section 28
	In subsection (3), in paragraph (c), for “83 of the Insolvency Act 1985” substitute “95 of the Insolvency Act 1986”.
	In subsectuion (4), in paragraph (a), for “Part XXI of the Companies Act 1985” substitute “Part V of the Insolvency Act 1986”.
	In subsection (6)(b), for sub-paragraphs (ii) to (iv) substitute— “(ii)to be a member of a liquidation committee established under Part IV or V of the Insolvency Act 1986; (iii)to be a member of a creditors committee appointed under section 301 of that Act; and (iv)to be a commissioner under section 30 or the Bankruptcy (Scotland) Act 1985"; (v)to be a member of a committee of inspection appointed for the purposes of Part V or Part IX of the Companies Act (Northern Ireland) 1960;
	and (in the passage following sub-paragraph (iv)) for “such a commitee as is mentioned in paragraph (b)(ii) or (iv) above” substitute “a liquidation committee, creditors’ committee or committee of inspection”.
	In subsection (7), in paragraph (b), for the words from “section 116(4)” to the end of the paragraph substitute “section 261(1) of the Insolvency Act 1986 to any person in whom the property of the firm is vested under section 282(4) of that Act”.
Section 31(7)	For paragraph (a) substitute - “(a) for England and Wales, under sections 411 and 412 of the Insolvency Act 1986";
	and in paragraph (b) for “the said section 106” substitute “section 411 of that Act”.
British Aerospace Act 1980 (c. 26):
Section 9(1)	In paragraph (a), for “Companies Act 1985” substitute “Insolvency Act 1986”.
Public Passenger Vehicles Act 1981 (c. 14):
Section 19(3)	In paragraph (a), for “Chapter III of Part II of the Insolvency Act 1985” substitute “Part II of the Insolvency Act 1986”.
F108. . .
F108. . .	F108. . .
Supreme Court Act 1981 (c. 54):
Section 40A(2)	For “section 179 of the Insolvency Act 1985” substitute “section 346 of the Insolvency Act 1986”; and for “621 of the Companies Act 1985” substitute “183 of the Insolvency Act 1986”.
Trustee Savings Banks Act 1981 (c. 65):
Section 31	In paragraph (b), for “666 to 669 of the Companies Act 1985” substitute “221 to 224 of the Insolvency Act 1986”.
Section 54(2)	For “666(6) of the Companies Act 1985” substitute “221(6) of the Insolvency Act 1986”.
Iron and Steel Act 1982 (c. 25):
Schedule 4	In paragraph 3(3) after “Companies Act 1985” insert “or the Insolvency Act 1986”.
Civil Jurisdiction and Judgments Act 1982 (c. 27):
Section 18(3)	In paragraph (ba), for “213 of the Insolvency Act 1985” substitute “426 of the Insolvency Act 1986”.
Schedule 5	In paragraph (1), for “Companies Act 1985” substitute “Insolvency Act 1986”.
Insurance Companies Act 1982 (c. 50):
Section 53	For “Companies Act” (the first time) substitute “Insolvency Act 1986”; and for “Companies Act” (the second time) substitute “that Act of 1986”.
Section 54	In subsection (1), for “the Companies Act” (the first time) substitute “Part IV or V of the Insolvency Act 1986”; and in paragraph (a), for “518 or sections 667 to 669” substitute “123 or sections 222 to 224”. In subsection (4) for “Companies Act” (the first time) substitute “Insolvency Act 1986”.
Section 55	In subsection (5) for “subsection (3) of section 540 of the Companies Act” substitute “section 168(2) of the Insolvency Act 1986”.
	In subsection (6), for “631 of the Companies Act” substitute “212 of the Insolvency Act 1986”.
Section 56	In subsection (4), for “Section 90(5) of the Insolvency Act 1985” substitute “Section 177(5) of the Insolvency Act 1986”; and for “section 90 of the said Act of 1985” substitute “section 177 of the said Act of 1986”.
	In subsection (7), for “section 539(1) of the Companies Act” substitute “section 167 of, and Schedule 4 to, the Insolvency Act 1986”.
Section 59	In subsection (1), for “106 of the Insolvency Act 1985” substitute “411 of the Insolvency Act 1986”.
	In subsection (2), for “106 of the Insolvency Act 1985” substitute “411 of the Insolvency Act 1986”; and for “section 89 of, and Schedule 4 to, the Insolvency Act 1985” substitute “sections 175 and 176 of, and Schedule 6 to, the Insolvency Act 1986”.
Section 96(1)	In the definition of “insolvent”, for “517 and 518 or section 666 of the Companies Act” substitute “122 and 123 or section 221 of the Insolvency Act 1986”.
F108. . .
F108. . .	F108. . .
Telecommunications Act 1984 (c. 12):
Section 68(1)	In paragraph (a), for “Companies Act 1985” substitute “Insolvency Act 1986”.
County Courts Act 1984 (c. 28):
Section 98	For subsection (3) substitute— “(3) The provisions of this section have effect subject to those of sections 183, 184 and 346 of the Insolvency Act 1986".
Section 102	For subsection (8) substitute— “(8) Nothing in this section affects section 346 of the Insolvency Act 1986".
Section 109(2)	For “179 of the Insolvency Act 1985” substitute “346 of the Insolvency Act 1986”
Finance Act 1985 (c. 54):
Section 79	Omit the word “altogether”; and afer “Companies Act 1985” insert “sections 110 and 111 of the Insolvency Act 1986”.
Housing Act 1985 (c. 68):
Schedule 18	In paragraphs 3(4) and 5(3), for “228 of the Insolvency Act 1985” substitute “421 of the Insolvency Act 1986”.

SCHEDULES

C120C18F1SCHEDULE A1 Moratorium where directors propose voluntary arrangement

Part I Introductory

Interpretation

F21

Eligible companies

F42

1

a

b

2

F5a

b

bb

c

d

F73

a

b

c

F83

1

a

b

2

a

b

3

F94

F1585

a

b

F1836

F104

1

F11a

b

c

d

e

f

i

ii

F12fa

g

2

F134ACapital market arrangement

i

ii

F144BPublic private partnership

i

ii

F154CLiability under an arrangement

1

2

3

a

b

F164DInterpretation of capital market arrangement

1

a

b

c

d

2

a

b

c

3

F174ECapital market investment

1

a

b

2

3

F184F

1

a

b

c

C120 C18F1SCHEDULE A1 Moratorium where directors propose voluntary arrangement