PART 10Insolvency
Administration
129Administration: sales to connected persons
1
Schedule B1 to the Insolvency Act 1986 (administration) is amended as follows.
2
Paragraph 60 (power of administrators) becomes sub-paragraph (1) of that paragraph.
3
After that sub-paragraph insert—
2
But the power to sell, hire out or otherwise dispose of property is subject to any regulations that may be made under paragraph 60A.
4
After paragraph 60 insert—
60A
1
The Secretary of State may by regulations make provision for—
a
prohibiting, or
b
imposing requirements or conditions in relation to,
the disposal, hiring out or sale of property of a company by the administrator to a connected person in circumstances specified in the regulations.
2
Regulations under this paragraph may in particular require the approval of, or provide for the imposition of requirements or conditions by—
a
creditors of the company,
b
the court, or
c
a person of a description specified in the regulations.
3
In sub-paragraph (1), “connected person”, in relation to a company, means—
a
a relevant person in relation to the company, or
b
a company connected with the company.
4
For the purposes of sub-paragraph (3)—
a
“relevant person”, in relation to a company, means—
i
a director or other officer, or shadow director, of the company;
ii
a non-employee associate of such a person;
iii
a non-employee associate of the company;
b
a company is connected with another if any relevant person of one is or has been a relevant person of the other.
5
In sub-paragraph (4), “non-employee associate” of a person means a person who is an associate of that person otherwise than by virtue of employing or being employed by that person.
6
Subsection (10) of section 435 (extended definition of company) applies for the purposes of sub-paragraphs (3) to (5) as it applies for the purposes of that section.
7
Regulations under this paragraph may—
a
make different provision for different purposes;
b
make incidental, consequential, supplemental and transitional provision.
8
Regulations under this paragraph are to be made by statutory instrument.
9
Regulations under this paragraph may not be made unless a draft of the statutory instrument containing the regulations has been laid before Parliament and approved by a resolution of each House of Parliament.
10
This paragraph expires at the end of the period of 5 years beginning with the day on which it comes into force unless the power conferred by it is exercised during that period.