The Insolvent Partnerships (Amendment) Order 2001

Explanatory Note

(This note is not part of the Order)

This Order amends the Insolvent Partnerships Order 1994 (S.I. 1994/2421) (the “1994 Order”). It provides that sections 1, 1A, 8A, 13, 14 and 17, in addition to those sections of the Company Directors Disqualification Act 1986 (c. 46) (the “CDDA”) already applied, are applied to insolvent partnerships, with modifications, where appropriate, as set out in Schedule 8 of the Insolvent Partnerships Order 1994, by virtue of the amendment of article 16 of, and Schedule 8 to, the 1994 Order.

Article 2 amends article 16 of the 1994 Order. The amendment applies sections 1, 1A,8A, 13, 14 and 17 of the CDDA to insolvent partnerships. Section 1A of the CDDA (together with the amendments to sections 6, 7, and 8 of the CDDA) provides for the new disqualification undertaking provisions introduced by the Insolvency Act 2000 (c. 39). These provisions allow the Secretary of State to accept a disqualification undertaking from a person who is or has been an officer of a partnership where an insolvent partnership is wound up as an unregistered company.

Article 3 amends Schedule 8 to the 1994 Order. Article 3(2) provides for an amended definition of the court to which an application for a disqualification order is to be made. Article 3(3) inserts section 7(2A) of the CDDA which allows the Secretary of State to accept a disqualification undertaking if the conditions mentioned in section 6(1) of the CDDA are satisfied and makes minor amendments to section 7 of the CDDA, as applied by the 1994 Order. Article 3(4) inserts section 8(2A) of the CDDA (as modified) which allows the Secretary of State to accept disqualification undertakings under section 8 of the CDDA. Article 3(5) inserts section 9(1A) of the CDDA (as modified) which provides that the Secretary of State in determining whether he may accept a disqualification undertaking must have regard to the matters in Schedule 1 to the CDDA and makes minor amendments to section 9 of the CDDA, as applied by the 1994 Order. Article 3(6) modifies sections 13, 14, 15 and 17 of the CDDA in their application to insolvent partnerships.