C2. InsolvencyU.K.
Section C2.
In relation to business associations—
(a)the modes of, the grounds for and the general legal effect of winding up, and the persons who may initiate winding up,
(b)liability to contribute to assets on winding up,
(c)powers of courts in relation to proceedings for winding up, other than the power to sist proceedings,
(d)arrangements with creditors, and
(e)procedures giving protection from creditors.
Preferred or preferential debts for the purposes of the Bankruptcy (Scotland) Act 1985, the Insolvency Act 1986, and any other enactment relating to the sequestration of the estate of any person or to the winding up of business associations, the preference of such debts against other such debts and the extent of their preference over other types of debt.
Regulation of insolvency practitioners.
Co-operation of insolvency courts.
Exceptions
In relation to business associations—
(a)the process of winding up, including the person having responsibility for the conduct of a winding up or any part of it, and his conduct of it or of that part,
(b)the effect of winding up on diligence, and
(c)avoidance and adjustment of prior transactions on winding up.
[F1In relation to business associations which are social landlords, the following additional exceptions–
(a)the general legal effect of winding up,
(b)procedures for the initiation of winding up,
(c)powers of courts in relation to proceedings for winding up, and
(d)procedures giving protection from creditors,
but only in so far as they relate to a moratorium on the disposal of property held by a social landlord and the management and disposal of such property.]
Floating charges and receivers, except in relation to preferential debts, regulation of insolvency practitioners and co-operation of insolvency courts.
Interpretation
“Business association” has the meaning given in Section C1 of this Part of this Schedule, but does not include any person whose estate may be sequestrated under the Bankruptcy (Scotland) Act 1985 or any public body established by or under an enactment.
[F2“Social landlord” means a body which is–
(a)[F3a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014] which has its registered office for the purposes of that Act in Scotland and satisfies the relevant conditions, or
(b)a company registered under the Companies Act 1985 which has its registered office for the purposes of that Act in Scotland and satisfies the relevant conditions.
“The relevant conditions” are that the body does not trade for profit and is established for the purpose of, or has among its objects and powers, the provision, construction, improvement or management of–
(a)houses to be kept available for letting,
(b)houses for occupation by members of the body, where the rules of the body restrict membership to persons entitled or prospectively entitled (as tenants or otherwise) to occupy a house provided or managed by the body, or
(c)hostels,
“house” and “hostel” having the meanings given in section 338(1) of the Housing (Scotland) Act 1987.]
“Winding up”, in relation to business associations, includes winding up of solvent, as well as insolvent, business associations.
Textual Amendments
F1 Words in Sch. 5 Pt. 2 Section C2 inserted (12.4.2001) by S.I. 2001/1456 , art. 2(1)
F2 Definitions of "Social landlord", "The relevant conditions", "house" and "hostel" in Sch. 5 Pt. II Section C2 inserted (12.4.2001) by S.I. 2001/1456 , art. 2(2)
F3 Words in Sch. 5 Pt. 2 substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14) , s. 154 , Sch. 4 para. 66 (with Sch. 5 )