Part 1Commonhold
Termination: winding-up by court
50Introduction
1
Section 51 applies where a petition is presented under section 124 of the Insolvency Act 1986 for the winding up of a commonhold association by the court.
2
For the purposes of this Part—
a
an “insolvent commonhold association” is one in relation to which a winding-up petition has been presented under section 124 of the Insolvency Act 1986,
b
a commonhold association is the “successor commonhold association” to an insolvent commonhold association if the land specified for the purpose of section 34(1)(a) is the same for both associations, and
c
a “winding-up order” is an order under section 125 of the Insolvency Act 1986 for the winding up of a commonhold association.
51Succession order
1
At the hearing of the winding-up petition an application may be made to the court for an order under this section (a “succession order”) in relation to the insolvent commonhold association.
2
An application under subsection (1) may be made only by—
a
the insolvent commonhold association,
b
one or more members of the insolvent commonhold association, or
c
a provisional liquidator for the insolvent commonhold association appointed under section 135 of the Insolvency Act 1986.
3
An application under subsection (1) must be accompanied by—
a
prescribed evidence of the formation of a successor commonhold association, and
b
a certificate given by the directors of the successor commonhold association that its memorandum and articles of association comply with regulations under paragraph 2(1) of Schedule 3.
4
The court shall grant an application under subsection (1) unless it thinks that the circumstances of the insolvent commonhold association make a succession order inappropriate.
52Assets and liabilities
1
Where a succession order is made in relation to an insolvent commonhold association this section applies on the making of a winding-up order in respect of the association.
2
The successor commonhold association shall be entitled to be registered as the proprietor of the freehold estate in the common parts.
3
The insolvent commonhold association shall for all purposes cease to be treated as the proprietor of the freehold estate in the common parts.
4
The succession order—
a
shall make provision as to the treatment of any charge over all or any part of the common parts;
b
may require the Registrar to take action of a specified kind;
c
may enable the liquidator to require the Registrar to take action of a specified kind;
d
may make supplemental or incidental provision.
53Transfer of responsibility
1
Where a succession order is made in relation to an insolvent commonhold association this section applies on the making of a winding-up order in respect of the association.
2
The successor commonhold association shall be treated as the commonhold association for the commonhold in respect of any matter which relates to a time after the making of the winding-up order.
3
On the making of the winding-up order the court may make an order requiring the liquidator to make available to the successor commonhold association specified—
a
records;
b
copies of records;
c
information.
4
An order under subsection (3) may include terms as to—
a
timing;
b
payment.
54Termination of commonhold
1
This section applies where the court—
a
makes a winding-up order in respect of a commonhold association, and
b
has not made a succession order in respect of the commonhold association.
2
The liquidator of a commonhold association shall as soon as possible notify the Registrar of—
a
the fact that this section applies,
b
any directions given under section 168 of the Insolvency Act 1986 (c. 45) (liquidator: supplementary powers),
c
any notice given to the court and the registrar of companies in accordance with section 172(8) of that Act (liquidator vacating office after final meeting),
d
any notice given to the Secretary of State under section 174(3) of that Act (completion of winding-up),
e
any application made to the registrar of companies under section 202(2) of that Act (insufficient assets: early dissolution),
f
any notice given to the registrar of companies under section 205(1)(b) of that Act (completion of winding-up), and
g
any other matter which in the liquidator’s opinion is relevant to the Registrar.
3
Notification under subsection (2)(b) to (f) must be accompanied by a copy of the directions, notice or application concerned.
4
The Registrar shall—
a
make such arrangements as appear to him to be appropriate for ensuring that the freehold estate in land in respect of which a commonhold association exercises functions ceases to be registered as a freehold estate in commonhold land as soon as is reasonably practicable after he receives notification under subsection (2)(c) to (f), and
b
take such action as appears to him to be appropriate for the purpose of giving effect to a determination made by the liquidator in the exercise of his functions.