Corporate Insolvency and Governance Act 2020

Modifications of 1986 Act E+W+S

8 (1) Paragraphs 9 to 18 apply where— E+W+S

(a) a creditor presents a petition under section 124 of the 1986 Act during the relevant period in relation to a registered or unregistered company, and

(b) the court to which it is presented makes an order under section 122(1)(f) or 221(5)(b) of that Act (“the winding-up order”).

(2) Paragraphs 9 to 18 are to be regarded as having come into force on 27 April 2020.

9 E+W+S If the winding up would by virtue of section 129(2) of the 1986 Act be deemed to commence at the time of the presentation of the petition, the winding up is instead for the purposes of that Act to be deemed to commence on the making of the winding-up order.

10 E+W+S In section 74 of the 1986 Act (liability as contributories of present and past members), subsection (2)(a) has effect as if the reference to one year or more before the commencement of the winding up were to—

(a) one year or more before the day on which the petition was presented, or

(b) if the winding-up order was made more than 6 months after the day on which the petition was presented, 18 months or more before the day on which the winding-up order was made.

11 E+W+S In section 206 of the 1986 Act (fraud etc in anticipation of winding up), subsection (1) has effect as if the reference to 12 months immediately preceding the commencement of the winding up were to a period which—

(a) begins with whichever is the later of—

(i) the day 12 months before the day on which the petition was presented, and

(ii) the day 18 months before the day on which the winding-up order was made, and

(b) ends with the day on which the winding-up order was made.

12 E+W+S In section 207 of the 1986 Act (transactions in fraud of creditors), subsection (2)(a) has effect as if the reference to conduct occurring more than 5 years before the commencement of the winding up were to conduct occurring—

(a) more than 5 years before the day on which the petition was presented, or

(b) if the winding-up order was made more than 6 months after the day on which the petition was presented, more than 5 years and 6 months before the day on which the winding-up order was made.

13 E+W+S In section 208 of the 1986 Act (misconduct in course of winding up), subsection (2) has effect as if the reference to 12 months immediately preceding the commencement of the winding up were to a period which—

(a) begins with whichever is the later of—

(i) the day 12 months before the day on which the petition was presented, and

(ii) the day 18 months before the day on which the winding-up order was made, and

(b) ends with the day on which the winding-up order was made.

14 (1) Section 214A of the 1986 Act (as inserted for the purposes of limited liability partnerships by the Limited Liability Partnership Regulations 2001 (S.I. 2001/1090) and the Limited Liability Partnership (Scotland) Regulations 2001 (S.S.I. 2001/128)) has effect as follows. E+W+S

(2) Subsection (2) has effect as if the reference to 2 years ending with the commencement of the winding up were to a period which—

(a) begins with whichever is the later of—

(i) the day 2 years before the day on which the petition was presented, and

(ii) the day 2 years and 6 months before the day on which the winding-up order was made, and

(b) ends with the day on which the winding-up order was made.

15 (1) Section 240 of the 1986 Act (definition of “relevant time”) has effect as follows. E+W+S

(2) Subsection (1)(a) has effect as if the reference to the period of 2 years ending with the onset of insolvency were to the period which—

(a) begins with whichever is the later of—

(i) the day 2 years before the day on which the petition was presented, and

(ii) the day 2 years and 6 months before the day on which the winding-up order was made, and

(b) ends with the day on which the winding-up order was made.

(3) Subsection (1)(b) has effect as if the reference to the period of 6 months ending with the onset of insolvency were to the period which—

(a) begins with whichever is the later of—

(i) the day 6 months before the day on which the petition was presented, and

(ii) the day 12 months before the day on which the winding-up order was made, and

(b) ends with the day on which the winding-up order was made.

16 (1) Section 242 of the 1986 Act (gratuitous alienations (Scotland)) has effect as follows. E+W+S

(2) Subsection (3)(a) has effect as if the reference to a day not earlier than 5 years before the date on which the winding up of the company commences were to—

(a) a day not earlier than 5 years before the day on which the petition was presented, or

(b) if the winding-up order was made more than 6 months after the day on which the petition was presented, a day not more than 5 years and 6 months before the day on which the winding-up order was made.

(3) Subsection (3)(b) has effect as if the reference to a day not earlier than 2 years before the date on which the winding up of the company commences were to—

(a) a day not earlier than 2 years before the day on which the petition was presented, or

(b) if the winding-up order was made more than 6 months after the day on which the petition was presented, a day not more than 2 years and 6 months before the day on which the winding-up order was made.

17 E+W+S In section 243 of the 1986 Act (unfair preferences (Scotland)), subsection (1) has effect as if the reference to a preference created not earlier than 6 months before the commencement of the winding up were to a preference created—

(a) not earlier than 6 months before the day on which the petition was presented, or

(b) if the winding-up order was made more than 6 months after the day on which the petition was presented, not earlier than 12 months before the day on which the winding-up order was made.

18 (1) Section 245 of the 1986 Act (avoidance of certain floating charges) has effect as follows. E+W+S

(2) Subsection (3)(a) has effect as if the reference to the period of 2 years ending with the onset of insolvency were to the period which—

(a) begins with whichever is the later of—

(i) the day 2 years before the day on which the petition was presented, and

(ii) the day 2 years and 6 months before the day on which the winding-up order was made, and

(b) ends with the day on which the winding-up order was made.

(3) Subsection (3)(b) has effect as if the reference to the period of 12 months ending with the onset of insolvency were to the period which—

(a) begins with whichever is the later of—

(i) the day 12 months before the day on which the petition was presented, and

(ii) the day 18 months before the day on which the winding-up order was made, and

(b) ends with the day on which the winding-up order was made.