Part XXIV Insolvency

Voluntary winding up

365F1Powers of FCA and PRA to participate in proceedings.

(1)

This section applies in relation to a company which—

(a)

is being wound up voluntarily;

(b)

is an authorised person F2or recognised investment exchange; and

(c)

is not an insurer effecting or carrying out contracts of long-term insurance.

(2)

The F3appropriate regulator may apply to the court under section 112 of the 1986 Act (or Article 98 of the 1989 Order) in respect of the company.

(3)

The F3appropriate regulator is entitled to be heard at any hearing of the court in relation to the voluntary winding up of the company.

(4)

Any notice or other document required to be sent to a creditor of the company must also be sent to the F3appropriate regulator.

(5)

A person appointed for the purpose by the F3appropriate regulator is entitled—

(a)

to attend any meeting of creditors of the company summoned under any enactment;

(b)

to attend any meeting of a committee established under section 101 of the 1986 Act (or Article 87 of the 1989 Order); and

(c)

to make representations as to any matter for decision at such a meeting.

(6)

The voluntary winding up of the company does not bar the right of the F3appropriate regulator to have it wound up by the court.

(7)

If, during the course of the winding up of the company, a compromise or arrangement is proposed between the company and its creditors, or any class of them, the F3appropriate regulator may apply to the court under F4section 896 or 899 of the Companies Act 2006.

F5(8)

"The appropriate regulator” means—

(a)

for the purposes of subsections (2) to (4), (6) and (7)—

(i)

where the company is a PRA-authorised person, each of the FCA and the PRA, and

(ii)

in any other case, the FCA;

(b)

for the purposes of subsection (5)—

(i)

where the company is a PRA-authorised person, the FCA or the PRA, and

(ii)

in any other case, the FCA.

366 Insurers effecting or carrying out long-term contracts or insurance.

(1)

An insurer effecting or carrying out contracts of long-term insurance may not be wound up voluntarily without the consent of the F6PRA.

(2)

If notice of a general meeting of such an insurer is given, specifying the intention to propose a resolution for voluntary winding up of the insurer, a director of the insurer must notify the F7PRA as soon as practicable after he becomes aware of it.

(3)

A person who fails to comply with subsection (2) is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

F8(4)

A winding up resolution may not be passed—

(a)

as a written resolution (in accordance with Chapter 2 of Part 13 of the Companies Act 2006), or

(b)

at a meeting called in accordance with section 307(4) to (6) or 337(2) of that Act (agreement of members to calling of meeting at short notice).

(5)

A copy of a winding-up resolution forwarded to the registrar of companies in accordance with F9section 30 of the Companies Act 2006 must be accompanied by a certificate issued by the F10PRA stating that it consents to the voluntary winding up of the insurer.

(6)

If subsection (5) is complied with, the voluntary winding up is to be treated as having commenced at the time the resolution was passed.

(7)

If subsection (5) is not complied with, the resolution has no effect.

(8)

“Winding-up resolution” means a resolution for voluntary winding up of an insurer effecting or carrying out contracts of long-term insurance.

F11(9)

Before giving or refusing consent under subsection (1), the PRA must consult the FCA.

(10)

In the event that the activity of effecting or carrying out long-term contracts of insurance as principal is not to any extent a PRA-regulated activity—

(a)

references to the PRA in subsections (1), (2) and (5) are to be read as references to the FCA, and

(b)

subsection (9) does not apply.