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Part VIIE+W+S Insolvency of employers

Chapter IIE+W+S Payment by Secretary of State of unpaid scheme contributions

123 Interpretation of Chapter II.E+W+S

(1)For the purposes of this Chapter, an employer shall be taken to be insolvent if, but only if, in England and Wales—

(a)he has been [F1made] bankrupt or has made a composition or arrangement with his creditors;

(b)he has died and his estate falls to be administered in accordance with an order under section 421 of the M1Insolvency Act 1986; or

(c)where the employer is a company—

(i)a winding-up order F2... is made or a resolution for voluntary winding up is passed with respect to it [F3or the company enters administration],

(ii)a receiver or manager of its undertaking is duly appointed,

(iii)possession is taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the company comprised in or subject to the charge, or

(iv)a voluntary arrangement proposed for the purpose of Part I of the M1Insolvency Act 1986 is approved under that Part.

(2)For the purposes of this Chapter, an employer shall be taken to be insolvent if, but only if, in Scotland—

(a)sequestration of his estate is awarded or he executes a trust deed for his creditors or enters into a composition contract;

(b)he has died and a judicial factor appointed under section 11A of the M2Judicial Factors (Scotland) Act 1889 is required by that section to divide his insolvent estate among his creditors; or

(c)where the employer is a company—

(i)a winding-up order F4... is made or a resolution for voluntary winding up is passed with respect to it [F5or the company enters administration],

(ii)a receiver of its undertaking is duly appointed, or

(iii)a voluntary arrangement proposed for the purpose of Part I of the M1Insolvency Act 1986 is approved under that Part.

(3)In this Chapter—

[F9(3A)Section 89 of the Pensions Act 2008 (agency workers) applies for the purposes of this Chapter as it applies for the purposes of Part 1 of that Act.

(3B)References in this Chapter to a worker include references to an individual to whom Part 1 of the Pensions Act 2008 applies as if the individual were a worker because of regulations made under section 98 of that Act; and related expressions are to be read accordingly.]

F10(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)Any reference in this Chapter to the resources of a scheme is a reference to the funds out of which the benefits provided by the scheme are from time to time payable.

Textual Amendments

Modifications etc. (not altering text)

C1S. 123 applied (6.4.1997) by Pensions Act 1995 (c. 26), ss. 81(8), 180(1) (with s. 121(5)); S.I. 1997/664, art. 2(3), Sch. Pt. 2

Commencement Information

I1Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

Marginal Citations