The Pension Protection Fund (Moratorium and Arrangements and Reconstructions for Companies in Financial Difficulty) Regulations 2020

Board of the Pension Protection Fund rights when arrangement or reconstruction for company in financial difficulty is proposed

3.—(1) This regulation applies where—

(a) a company or LLP in respect of which a compromise or arrangement (within the meaning of section 901A of the 2006 Act (application of this part)(1)) is proposed is an employer in respect of an eligible scheme; and

(b) the trustees or managers of the scheme are a creditor of the company or LLP to whom the compromise or arrangement is proposed.

(2) The Board may exercise those rights exercisable under Part 26A of the 2006 Act (arrangements and reconstructions: companies in financial difficulty)(2) by the trustees or managers of the scheme as a creditor of the company or LLP as if the Board is a creditor of the company.

(3) The Board may exercise the rights mentioned in paragraph (2) in addition to the exercise of those rights by the trustees or managers of the scheme.

(4) But the rights which are exercisable by the trustees or managers of the scheme as a creditor of the company or LLP to vote in a meeting summoned under section 901C(1) of the 2006 Act (court order for holding of meeting)(3) are instead to be exercised by the Board to the exclusion of the trustees or managers of the scheme.

(5) Before exercising the right under paragraph (4) the Board must consult the trustees or managers of the scheme.

(1)

Section 901A was inserted by section 7 of, and schedule 9 to, the Corporate Insolvency and Governance Act 2020 (c. 12).

(2)

Part 26A was inserted by section 7 of, and schedule 9 to, the Corporate Insolvency and Governance Act 2020 (c. 12).

(3)

Section 901C was inserted by section 7 of, and schedule 9 to, the Corporate Insolvency and Governance Act 2020 (c. 12).