Amendment to Schedule 4 to the Insolvent Partnerships Order 19949.

(1)

Schedule 4 to the 1994 Order (modified provisions of the Act applying for purposes of Article 8) is amended as follows.

(2)

In paragraph 3 of Part I (section 221: winding up of unregistered companies), for modified section 221(8) substitute—

“(8)

The circumstances in which an insolvent partnership may be wound up as an unregistered company are as follows—

(a)

the partnership is unable to pay its debts,

(b)

at the time at which a moratorium for the insolvent partnership under section 1A comes to an end, no voluntary arrangement approved under Part I of this Act has effect in relation to the insolvent partnership.”.

(3)

In paragraph 6(a) of Part II (circumstances in which members of insolvent partnerships may be wound up or made bankrupt by the court), for modified section 122 substitute—

“122.

A corporate member or former corporate member of an insolvent partnership may be wound up by the court if—

(a)

it is unable to pay its debts,

(b)

there is a creditor, by assignment or otherwise, to whom the insolvent partnership is indebted and the corporate member or former corporate member is liable in relation to that debt and at the time at which a moratorium for the insolvent partnership under section 1A comes to an end, no voluntary arrangement approved under Part I of this Act has effect in relation to the insolvent partnership.”.

(4)

In paragraph 6(b) of Part II (circumstances in which members of insolvent partnerships may be wound up or made bankrupt by the court),

(a)

in modified section 267(2) after “Subject to”, insert “subsection (2A) below and”,

(b)

after modified section 267(2) insert—

“(2A)

A creditor’s petition may be presented to the court in respect of a joint debt or debts if at the time at which a moratorium for the insolvent partnership under section 1A comes to an end, no voluntary arrangement approved under Part I of this Act has effect in relation to the insolvent partnership.”.