Part 2U.K.The Board of the Pension Protection Fund

Modifications etc. (not altering text)

C4Pt. 2 applied in part (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 42(1), 53, 57 (with regs. 6, 41, 44(1), 47(1), 69(2), 72(1), 76(1)); coming into force immediately after s. 29 of 2011 c. 19 - see S.I. 2014/1683, art. 2

Chapter 2E+W+SInformation relating to employer’s insolvency etc

Modifications etc. (not altering text)

C5Pt. 2 modified in part (9.3.2005 for specified purposes, 1.4.2005 for specified purposes, 6.4.2005 in so far as not already in force (except ch. 4)) by The Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 (S.I. 2005/441), regs. 1, 2-60, 71, 72

C6Pt. 2 modified (8.3.2005 for specified purposes, 6.4.2005 in so far as not already in force) by The Pension Protection Fund (Partially Guaranteed Schemes) (Modification) Regulations 2005 (S.I. 2005/277), regs. 1(1), 2-11

Insolvency eventsE+W+S

121Insolvency event, insolvency date and insolvency practitionerE+W+S

(1)In this Part each of the following expressions has the meaning given to it by this section—

(2)An insolvency event occurs in relation to an individual where—

(a)he is [F1made] bankrupt or sequestration of his estate has been awarded;

(b)the nominee in relation to a proposal for a voluntary arrangement under Part 8 of the Insolvency Act 1986 (c. 45) submits a report to the court under section 256(1) or 256A(3) of that Act which states that in his opinion [F2the individual’s creditors should] consider the debtor’s proposal;

F3(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)he executes a trust deed for his creditors or enters into a composition contract;

(e)he has died and—

(i)an insolvency administration order is made in respect of his estate in accordance with an order under section 421 of the Insolvency Act 1986, or

(ii)a judicial factor appointed under section 11A of the Judicial Factors (Scotland) Act 1889 (c. 39) is required by that section to divide the individual’s estate among his creditors.

(3)An insolvency event occurs in relation to a company where—

(a)the nominee in relation to a proposal for a voluntary arrangement under Part 1 of the Insolvency Act 1986 submits a report to the court under section 2 of that Act (procedure where nominee is not the liquidator or administrator) which states that in his opinion [F4the proposal should be considered by a meeting of the company and by the company’s creditors;]

(b)the directors of the company file (or in Scotland lodge) with the court documents and statements in accordance with paragraph 7(1) of Schedule A1 to that Act (moratorium where directors propose voluntary arrangement);

(c)an administrative receiver within the meaning of section 251 of that Act is appointed in relation to the company;

(d)the company enters administration within the meaning of paragraph 1(2)(b) of Schedule B1 to that Act;

(e)a resolution is passed for a voluntary winding up of the company without a declaration of solvency under section 89 of that Act;

[F5(f)a winding up becomes a creditors’ voluntary winding up under section 96 of that Act (conversion to creditors’ voluntary winding up);]

(g)an order for the winding up of the company is made by the court under Part 4 or 5 of that Act.

(4)An insolvency event occurs in relation to a partnership where—

(a)an order for the winding up of the partnership is made by the court under any provision of the Insolvency Act 1986 (c. 45) (as applied by an order under section 420 of that Act (insolvent partnerships));

(b)sequestration is awarded on the estate of the partnership under section [F622 of the Bankruptcy (Scotland) Act 2016] or the partnership grants a trust deed for its creditors;

(c)the nominee in relation to a proposal for a voluntary arrangement under Part 1 of the Insolvency Act 1986 (as applied by an order under section 420 of that Act) submits a report to the court under section 2 of that Act (procedure where nominee is not the liquidator or administrator) which states that in his opinion [F7the proposal should be considered by a meeting of the members of the partnership and by the partnership’s creditors;]

(d)the members of the partnership file with the court documents and statements in accordance with paragraph 7(1) of Schedule A1 to that Act (moratorium where directors propose voluntary arrangement) (as applied by an order under section 420 of that Act);

[F8(e)the partnership enters administration within the meaning of paragraph 1(2)(b) of Schedule B1 to that Act (as applied by an order under section 420 of that Act).]

(5)An insolvency event also occurs in relation to a person where an event occurs which is a prescribed event in relation to such a person.

(6)Except as provided by subsections (2) to (5), for the purposes of this Part an event is not to be regarded as an insolvency event in relation to a person.

(7)The Secretary of State may by order amend subsection (4)(e) to make provision consequential upon any order under section 420 of the Insolvency Act 1986 (insolvent partnerships) applying the provisions of Part 2 of that Act (administration) as amended by the Enterprise Act 2002 (c. 40).

(8)“Insolvency date”, in relation to an insolvency event, means the date on which the event occurs.

(9)“Insolvency practitioner”, in relation to a person, means—

(a)a person acting as an insolvency practitioner, in relation to that person, in accordance with section 388 of the Insolvency Act 1986;

(b)in such circumstances as may be prescribed, a person of a prescribed description.

(10)In this section—

(11)In applying section 388 of the Insolvency Act 1986 under subsection (9) above—

F10(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)section 388(5) (which includes provision that nothing in the section applies to anything done by the official receiver or the Accountant in Bankruptcy) must be ignored.

Textual Amendments

Modifications etc. (not altering text)

C8S. 121(3)(d) applied (with modifications) (8.2.2011) by The Investment Bank Special Administration Regulations 2011 (S.I. 2011/245), reg. 1, Sch. 6 para. 4 (with reg. 27(a))

Commencement Information

I1S. 121(1)-(4)(6)(8)(9)(a)(10)(11) in force at 6.4.2005 by S.I. 2005/275, art. 2(7), Sch. Pt. 7

I2S. 121(5) in force for the purpose only of conferring power to make regulations, orders or rules, as the case may be, 10.2.2005; and for all other purposes at 6.4.2005 in so far as not already in force by S.I. 2005/275, art. 2(3), Sch. Pt. 3

I3S. 121(7) in force at 30.6.2005 by S.I. 2005/1720, art. 2(2)

I4S. 121(9)(b) in force at 25.6.2014 by S.I. 2014/1636, art. 2