N.I.
Insolvency (Amendment) Act (Northern Ireland) 2016
2016 CHAPTER 2
An Act to amend the law relating to insolvency; and for connected purposes.
[29th January 2016]
BE IT ENACTED by being passed by the Northern Ireland Assembly and assented to by Her Majesty as follows:
Prospective
Provisions relating to communicationN.I.
Attendance at meetings and use of websitesN.I.
1—(1) In Part 7 of the Insolvency Order, after Article 208 (unenforceability of liens on books, etc.) insert—
“Remote attendance at meetingsN.I.
Remote attendance at meetings: company insolvency
208ZA—(1) This Article applies to—
(a)any meeting of the creditors of a company summoned under this Order or the rules; or
(b)any meeting of the members or contributories of a company summoned by the office-holder under this Order or the rules, other than a meeting of the members of a company in a members' voluntary winding up.
(2) Where the person summoning a meeting (“the convener”) considers it appropriate, the meeting may be conducted and held in such a way that persons who are not present together at the same place may attend it.
(3) Where a meeting is conducted and held in the manner referred to in paragraph (2), a person attends the meeting if that person is able toexercise any rights which that person may have to speak and vote at the meeting.
(4) For the purposes of this Article—
(a)a person is able to exercise the right to speak at a meeting when that person is in a position to communicate to all those attending the meeting, during the meeting, any information or opinions which that person has on the business of the meeting; and
(b)a person is able to exercise the right to vote at a meeting when—
(i)that person is able to vote, during the meeting, on resolutions put to the vote at the meeting; and
(ii)that person's vote can be taken into account in determining whether or not such resolutions are passed at the same time as the votes of all the other persons attending the meeting.
(5) The convener of a meeting which is to be conducted and held in the manner referred to in paragraph (2) shall make whatever arrangements the convener considers appropriate to—
(a)enable those attending the meeting to exercise their rights to speak or vote; and
(b)ensure the identification of those attending the meeting and the security of any electronic means used to enable attendance.
(6) Where in the reasonable opinion of the convener—
(a)a meeting will be attended by persons who will not be present together at the same place, and
(b)it is unnecessary or inexpedient to specify a place for the meeting,
any requirement under this Order or the rules to specify a place for the meeting may be satisfied by specifying the arrangements the convener proposes to enable persons to exercise their rights to speak or vote.
(7) In making the arrangements referred to in paragraph (5) and in forming the opinion referred to in paragraph (6)(b), the convener must have regard to the legitimate interests of the creditors, members or contributories and others attending the meeting in the efficient despatch of the business of the meeting.
(8) If—
(a)the notice of a meeting does not specify a place for the meeting,
(b)the convener is requested in accordance with the rules to specify a place for the meeting, and
(c)that request is made—
(i)in the case of a meeting of creditors or contributories, by not less than 10 per cent. in value of the creditors or contributories, or
(ii)in the case of a meeting of members, by members representing not less than 10 per cent. of the total voting rights of all the members having at the date of the request a right to vote at the meeting,
it shall be the duty of the convener to specify a place for the meeting.
(9) In this Article, “the office-holder”, in relation to a company, means—
(a)its liquidator, provisional liquidator, administrator, or administrative receiver; or
(b)where a voluntary arrangement in relation to the company is proposed or has taken effect under Part 2, the nominee or the supervisor of the voluntary arrangement.
Use of websitesN.I.
Use of websites: company insolvency
208ZB—(1) Where any provision of this Order or the rules requires the office-holder to give, deliver, furnish or send a notice or other document or information to any person, that requirement is satisfied by making the notice, document or information available on a website—
(a)in accordance with the rules; and
(b)in such circumstances as may be prescribed.
(2) In this Article, “the office-holder” means—
(a)the liquidator, provisional liquidator, administrator, or administrative receiver of a company; or
(b)where a voluntary arrangement in relation to a company is proposed or has taken effect under Part 2, the nominee or the supervisor of the voluntary arrangement.”.
(2) In Part 10 of the Insolvency Order, after Article 345 (formal defects) insert—
“Remote attendance at meetingsN.I.
Remote attendance at meetings: individual insolvency
345A—(1) Where—
(a)a bankruptcy order is made against an individual or an interim receiver of an individual's property is appointed, or
(b)a voluntary arrangement in relation to an individual is proposed or is approved under Chapter 2 of Part 8,
this Article applies to any meeting of the individual's creditors summoned under this Order or the rules.
(2) Where the person summoning a meeting (“the convener”) considers it appropriate, the meeting may be conducted and held in such a way that persons who are not present together at the same place may attend it.
(3) Where a meeting is conducted and held in the manner referred to in paragraph (2), a person attends the meeting if that person is able to exercise any rights which that person may have to speak and vote at the meeting.
(4) For the purposes of this Article—
(a)a person exercises the right to speak at a meeting when that person is in a position to communicate to all those attending the meeting, during the meeting, any information or opinions which that person has on the business of the meeting; and
(b)a person exercises the right to vote at a meeting when—
(i)that person is able to vote, during the meeting, on resolutions put to the vote at the meeting; and
(ii)that person's vote can be taken into account in determining whether or not such resolutions are passed at the same time as the votes of all the other persons attending the meeting.
(5) The convener of a meeting which is to be conducted and held in the manner referred to in paragraph (2) shall make whatever arrangements the convener considers appropriate to—
(a)enable those attending the meeting to exercise their rights to speak or vote; and
(b)ensure the identification of those attending the meeting and the security of any electronic means used to enable attendance.
(6) Where in the reasonable opinion of the convener—
(a)a meeting will be attended by persons who will not be present together at the same place, and
(b)it is unnecessary or inexpedient to specify a place for the meeting,
any requirement under this Order or the rules to specify a place for the meeting may be satisfied by specifying the arrangements the convener proposes to enable persons to exercise their rights to speak or vote.
(7) In making the arrangements referred to in paragraph (5) and in forming the opinion referred to in paragraph (6)(b), the convener must have regard to the legitimate interests of the creditors and others attending the meeting in the efficient despatch of the business of the meeting.
(8) If—
(a)the notice of a meeting does not specify a place for the meeting,
(b)the convener is requested in accordance with the rules to specify a place for the meeting, and
(c)that request is made by not less than 10 per cent. in value of the creditors,
it shall be the duty of the convener to specify a place for the meeting.
Use of websitesN.I.
Use of websites: individual insolvency
345B—(1) This Article applies where—
(a)a bankruptcy order is made against an individual or an interim receiver of an individual's property is appointed, or
(b)a voluntary arrangement in relation to an individual is proposed or is approved under Chapter 2 of Part 8,
and “the office-holder” means the official receiver, the trustee in bankruptcy, the interim receiver, the nominee or the supervisor of the voluntary arrangement, as the case may be.
(2) Where any provision of this Order or the rules requires the office-holder to give, deliver, furnish or send a notice or other document or information to any person, that requirement is satisfied by making the notice, document or information available on a website—
(a)in accordance with the rules; and
(b)in such circumstances as may be prescribed.”.
References to things in writingN.I.
2—(1) After Article 2A of the Insolvency Order (proceedings under EC Regulation: modified definition of property) insert—
“References to things in writing
2B—(1) A reference in this Order to a thing in writing includes that thing in electronic form.
(2) Paragraph (1) does not apply to the following provisions—
(a)Article 97(2) (dissent from arrangement under Article 96);
(b)Article 103(1) (definition of inability to pay debts; the statutory demand);
(c)Article 186(1) (inability to pay debts: unpaid creditor for £750 or more);
(d)Article 187 (inability to pay debts: debt remaining unsatisfied after action brought); and
(e)Article 242(1) and (2) (definition of “inability to pay”, etc.; the statutory demand).”.
(2) Paragraph 1(2) of Schedule B1 to the Insolvency Order (interpretation) is repealed.
Prospective
Requirements relating to meetingsN.I.
Removal of requirement for annual meetings in a members' voluntary and a creditors' voluntary winding upN.I.
3—(1) For Article 79 of the Insolvency Order (general company meeting at each year's end) substitute—
“Progress report to company
79—(1) Subject to Articles 82 and 88,the liquidator must—
(a)for each prescribed period produce a progress report relating to the prescribed matters; and
(b)within such period commencing with the end of the period referred to in sub-paragraph (a) as may be prescribed send a copy of the progress report to—
(i)the members of the company; and
(ii)such other persons as may be prescribed.
(2) A liquidator who fails to comply with this Article shall be guilty of an offence.”.
(2) For Article 91 of the Insolvency Order (meetings of company and creditors at each year's end) substitute—
“Progress report to company and creditors
91—(1) The liquidator must—
(a)for each prescribed period produce a progress report relating to the prescribed matters; and
(b)within such period commencing with the end of the period referred to in sub-paragraph (a) as may be prescribed send a copy of the progress report to—
(i)the members and creditors of the company; and
(ii)such other persons as may be prescribed.
(2) A liquidator who fails to comply with this Article shall be guilty of an offence.”.
(3) In Schedule 7 to the Insolvency Order (punishment of offences)—
(a)for the entry relating to Article 79(3) substitute—
“79(2) | Liquidator failing to send progress report to members. | Summary. | Level 3 on the standard scale.”. |
(b)for the entry relating to Article 91(3) substitute—
“91(2) | Liquidator failing to send progress report to members and creditors. | Summary. | Level 3 on the standard scale.”. |
Requirements in relation to meetings under Articles 81 and 84 of the Insolvency OrderN.I.
4 In Articles 81(2)(b)(i) and 84(1)(b)(i) of the Insolvency Order (notice of meeting of creditors), the words “by post” are repealed.
Reports in individual voluntary arrangementsN.I.
Prospective
Individual voluntary arrangements: removal of requirement to submit a nominee's report to the High CourtN.I.
5—(1) In Article 230A of the Insolvency Order (debtor's proposal and nominee's report)—
(a)in paragraph (2), for “to the High Court” substitute “ under paragraph (3) ”;
(b)in paragraph (3), for “report to the Court” substitute “ report to the debtor's creditors ”.
(2) In Article 231 of the Insolvency Order (summoning of creditors' meeting), for paragraph (1) substitute—
“(1) Where it has been reported to the High Court under Article 230 or to the debtor's creditors under Article 230A that a meeting of the debtor's creditors should be summoned, the nominee (or the nominee's replacementunder Article 230(3) or 230A(4)) shall summon that meeting for the time, date and place proposed in the nominee's report unless, in the case of a report to which Article 230 applies, the High Court otherwise directs.”.
(3) In Article 233(2) of the Insolvency Order (report of decisions to court), for “the debtor's proposal” substitute “ a voluntary arrangement proposed under Article 230 ”.
Fast-track voluntary arrangements: notification of the DepartmentN.I.
6 In Article 237C of the Insolvency Order (result) after “Court” insert “ , and notify the Department, ”.
Powers of liquidator and trusteeN.I.
Powers of liquidator exercisable with or without sanction in a winding upN.I.
7—(1) Schedule 2 to the Insolvency Order is amended as follows.
(2) In Part 1 (powers exercisable with sanction), paragraph 3 is repealed.
(3) In Part 3 (powers exercisable without sanction in any winding up), after paragraph 7, insert—
“7A Power to compromise, on such terms as may be agreed—
(a)all calls and liabilities to calls, all debts and liabilities capable of resulting in debts, and all claims (present or future, certain or contingent, ascertained or sounding only in damages) subsisting or supposed to subsist between the company and a contributory or alleged contributory or other debtor or person apprehending liability to the company, and
(b)subject to paragraph 2 in Part 1 of this Schedule, all questions in any way relating to or affecting the assets or the winding up of the company,
and take any security for the discharge of any such call, debt, liability or claim and give a complete discharge in respect of it.”.
Powers of trustee exercisable with or without sanction in a bankruptcyN.I.
8—(1) Schedule 3 to the Insolvency Order is amended as follows.
(2) In Part 1 (powers exercisable with sanction)—
(a)paragraph 6 is repealed; and
(b)in paragraph 8, the words “or by the trustee on any person” are repealed.
(3) In Part 2 (powers exercisable without sanction), after paragraph 10, insert—
“10A Power to refer to arbitration, or compromise on such terms as may be agreed, any debts, claims or liabilities subsisting or supposed to subsist between the bankrupt and any person who may have incurred any liability to the bankrupt.
10B Power to make such compromise or other arrangement as may be thought expedient with respect to any claim arising out of or incidental to the bankrupt's estate made or capable of being made by the trustee on any person”.
MiscellaneousN.I.
Definition of debtN.I.
Treatment of liabilities relating to contracts of employmentN.I.
Deeds of arrangementN.I.
Bankruptcy: early discharge procedureN.I.
After-acquired property of bankruptN.I.
Authorisation of insolvency practitionersN.I.
Regulatory objectivesN.I.
Oversight of recognised professional bodiesN.I.
Recognised professional bodies: revocation of recognitionN.I.
Court sanction of insolvency practitioners in public interest casesN.I.
Power for Department to obtain informationN.I.
Compliance ordersN.I.
Power to establish single regulator of insolvency practitionersN.I.
Power to establish single regulator of insolvency practitionersN.I.
21—(1) The Department may by regulations designate a body for the purposes of—
(a)authorising persons to act as insolvency practitioners; and
(b)regulating persons acting as such.
(2) The designated body may be either—
(a)a body corporate established by the regulations; or
(b)a body (whether a body corporate or an unincorporated association) already in existence when the regulations are made (an “existing body”).
(3) The regulations may, in particular, confer the following functions on the designated body—
(a)establishing criteria for determining whether a person is a fit and proper person to act as an insolvency practitioner;
(b)establishing the requirements as to education, practical training and experience which a person must meet in order to act as an insolvency practitioner;
(c)establishing and maintaining a system for providing full authorisation or partial authorisation to persons who meet those criteria and requirements;
(d)imposing technical standards for persons so authorised and enforcing compliance with those standards;
(e)imposing professional and ethical standards for persons so authorised and enforcing compliance with those standards;
(f)monitoring the performance and conduct of persons so authorised;
(g)investigating complaints made against, and other matters concerning the performance or conduct of, persons so authorised.
(4) The regulations may require the designated body, in discharging regulatory functions, so far as is reasonably practicable, to act in a way—
(a)which is compatible with the regulatory objectives; and
(b)which the body considers most appropriate for the purpose of meeting those objectives.
(5) Provision made under subsection (3)(d) or (3)(e) for the enforcement of the standards concerned may include provision enabling the designated body to impose a financial penalty on a person who is or has been authorised to act as an insolvency practitioner.
(6) The regulations may, in particular, include provision for the purpose of treating a person authorised to act as an insolvency practitioner by virtue of being a member of a professional body recognised under Article 350 of the Insolvency Order immediately before the regulations come into force as authorised to act as an insolvency practitioner by the body designated by the regulations after that time.
(7) Expressions used in this section which are defined for the purposes of Part 12 of the Insolvency Order have the same meaning in this section as in that Part.
(8) Regulations under this section shall not be made unless a draft of the regulations has been laid before and approved by resolution of the Assembly.
(9) Section 22 makes further provision about regulations under this section which designate an existing body.
(10) Schedule 1 makes supplementary provision in relation to the designation of a body by regulations under this section.
Regulations under section 21: designation of existing bodyN.I.
22—(1) The Department may make regulations under section 21 designating an existing body only if it appears to the Department that—
(a)the body is able and willing to exercise the functions that would be conferred by the regulations; and
(b)the body has arrangements in place relating to the exercise of those functions which are such as to be likely to ensure that the conditions in subsection (2) are met.
(2) The conditions are—
(a)that the functions in question will be exercised effectively; and
(b)where the regulations are to contain any requirements or other provisions prescribed under subsection (3), that those functions will be exercised in accordance with any such requirements or provisions.
(3) Regulations which designate an existing body may contain such requirements or other provisions relating to the exercise of the functions by the designated body as appear to the Department to be appropriate.
Power to make regulationsN.I.
23—(1) Article 363 of the Insolvency Order (regulations for purposes of Part 12) is amended as follows.
(2) The existing provision becomes paragraph (2) of that Article.
(3) In that paragraph—
(a)after “generality of” insert “ paragraph (1) or ”;
(b)for “regulations may contain” substitute “ regulations under this Article may contain ”.
(4) Before that paragraph insert—
“(1) The Department may make regulations for the purpose of giving effect to Part 12 of this Order.”.
(5) After that paragraph insert—
“(3) In making regulations under this Article, the Department must have regard to the regulatory objectives (as defined by Article 350C(3)).”.
Company arrangement or administration provision to apply to a credit unionN.I.
24 In Article 10(2) of the Insolvency (Northern Ireland) Order 2005 (societies to whom a company arrangement or administration provision may apply) at the end add “ or the Credit Unions (Northern Ireland) Order 1985. ”.
Disqualification from office: duty to consult the Lord Chief JusticeN.I.
25 In Article 24(7) of the Insolvency (Northern Ireland) Order 2005, at the end add “ ; but any such order may only be made after consultation with the Lord Chief Justice where the appeal is to a specified court. ”.
SupplementaryN.I.
InterpretationN.I.
26 In this Act—
“the Department” means the Department of Enterprise, Trade and Investment;
“the Insolvency Order” means the Insolvency (Northern Ireland) Order 1989;
“statutory provision” has the meaning given by section 1(f) of the Interpretation Act (Northern Ireland) 1954.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .CommencementN.I.
28—(1) This section and sections 26 and 29 come into operation on the day after the day on which this Act receives Royal Assent.
(2) The other provisions of this Act come into operation on such day or days as the Department may by order appoint.
(3) An order under subsection (2) may contain such transitional or saving provisions as the Department considers appropriate.
Short titleN.I.
29 This Act may be cited as the Insolvency (Amendment) Act (Northern Ireland) 2016.
SCHEDULES
Section 21(10).
SCHEDULE 1N.I.SINGLE REGULATOR OF INSOLVENCY PRACTITIONERS: SUPPLEMENTARY PROVISION
Operation of this ScheduleN.I.
1—(1) This Schedule has effect in relation to regulations under section 21 designating a body (referred to in this Schedule as “the Regulations”) as follows—N.I.
(a)paragraphs 2 to 13 have effect where the Regulations establish the body;
(b)paragraphs 6, 7 and 9 to 13 have effect where the Regulations designate an existing body (see section 21(2)(b));
(c)paragraph 14 also has effect where the Regulations designate an existing body that is an unincorporated association.
(2) Provision made in the Regulations by virtue of paragraph 6 or 12, where that paragraph has effect as mentioned in sub-paragraph (1)(b), may only apply in relation to—
(a)things done by or in relation to the body in or in connection with the exercise of functions conferred on it by the Regulations; and
(b)functions of the body which are functions so conferred.
Name, members and chairN.I.
2—(1) The Regulations must prescribe the name by which the body is to be known.N.I.
(2) The Regulations must provide that the members of the body must be appointed by the Department after such consultation as the Department thinks appropriate.
(3) The Regulations must provide that the Department must appoint one of the members as the chair of the body.
(4) The Regulations may include provision about—
(a)the terms on which the members of the body hold and vacate office;
(b)the terms on which the person appointed as the chair holds and vacates that office.
Remuneration etc.N.I.
3—(1) The Regulations must provide that the body must pay to its chair and members such remuneration and allowances in respect of expenses properly incurred by them in the exercise of their functions as the Department may determine.N.I.
(2) The Regulations must provide that, as regards any member (including the chair) in whose case the Department so determines, the body must pay or make provision for the payment of—
(a)such pension, allowance or gratuity to or in respect of that person on retirement or death as the Department may determine; or
(b)such contributions or other payment towards the provision of such a pension, allowance or gratuity as the Department may determine.
(3) The Regulations must provide that where—
(a)a person ceases to be a member of the body otherwise than on the expiry of the term of office; and
(b)it appears to the Department that there are special circumstances which make it right for that person to be compensated,
the body must make a payment to the person by way of compensation of such amount as the Department may determine.
StaffN.I.
4 The Regulations must provide that—N.I.
(a)the body may appoint such persons to be its employees as the body considers appropriate; and
(b)the employees are to be appointed on such terms and conditions as the body may determine.
ProceedingsN.I.
5—(1) The Regulations may make provision about the proceedings of the body.N.I.
(2) The Regulations may, in particular—
(a)authorise the body to exercise any function by means of committees consisting wholly or partly of members of the body;
(b)provide that the validity of proceedings of the body, or of any such committee, is not affected by any vacancy among the members or any defect in the appointment of a member.
FeesN.I.
6—(1) The Regulations may make provision—N.I.
(a)about the setting and charging of fees by the body in connection with the exercise of its functions;
(b)for the retention by the body of any such fees payable to it;
(c)about the application by the body of such fees.
(2) The Regulations may, in particular, make provision—
(a)for the body to be able to set such fees as appear to it to be sufficient to defray the expenses of the body exercising its functions, taking one year with another;
(b)for the setting of fees by the body to be subject to the approval of the Department.
(3) The expenses referred to in sub-paragraph (2)(a) include any expenses incurred by the body on such staff, accommodation, services and other facilities as appear to it to be necessary or expedient for the proper exercise of its functions.
ConsultationN.I.
7 The Regulations may make provision as to the circumstances and manner in which the body must consult others before exercising any function conferred on it by the Regulations.N.I.
Training and other servicesN.I.
8—(1) The Regulations may make provision authorising the body to provide training or other services to any person.N.I.
(2) The Regulations may make provision authorising the body—
(a)to charge for the provision of any such training or other services; and
(b)to calculate any such charge on the basis that it considers to be the appropriate commercial basis.
Report and accountsN.I.
9—(1) The Regulations must require the body, at least once in each 12 month period, to report to the Department on—N.I.
(a)the exercise of the functions conferred on it by the Regulations; and
(b)such other matters as may be prescribed in the Regulations.
(2) The Regulations must require the Department to lay before the Assembly a copy of each report received under this paragraph.
(3) Unless section 394 of the Companies Act 2006 applies to the body (duty on every company to prepare individual accounts), the Regulations must provide that the Department may give directions to the body with respect to the preparation of its accounts.
(4) Unless the body falls within sub-paragraph (5), the Regulations must provide that the Department may give directions to the body with respect to the audit of its accounts.
(5) The body falls within this sub-paragraph if it is a company whose accounts—
(a)are required to be audited in accordance with Part 16 of the Companies Act 2006 (see section 475 of that Act); or
(b)are exempt from the requirements of that Part under section 482 of that Act (non-profit making companies subject to public sector audit).
(6) The Regulations may provide that, whether or not section 394 of the Companies Act 2006 applies to the body, the Department may direct that any provisions of that Act specified in the directions are to apply to the body with or without modifications.
FundingN.I.
10 The Regulations may provide that the Department may make grants to the body.N.I.
Financial penaltiesN.I.
11—(1) This paragraph applies where the Regulations include provision enabling the body to impose a financial penalty on a person who is, or has been, authorised to act as an insolvency practitioner (see section 21(5)).N.I.
(2) The Regulations—
(a)must include provision about how the body is to determine the amount of a penalty; and
(b)may, in particular, prescribe a minimum or maximum amount.
(3) The Regulations must provide that, unless the Department (with the consent of the Department of Finance and Personnel) otherwise directs, income from penalties imposed by the body is to be paid into the Consolidated Fund.
(4) The Regulations may also, in particular—
(a)include provision for a penalty imposed by the body to be enforced as a debt;
(b)prescribe conditions that must be met before any action to enforce a penalty may be taken.
Status etc.N.I.
12 The Regulations must provide that—N.I.
(a)the body is not to be regarded as acting on behalf of the Crown; and
(b)its members, officers and employees are not to be regarded as Crown servants.
Transfer schemesN.I.
13—(1) This paragraph applies if the Regulations make provision designating a body (whether one established by the Regulations or one already in existence) in place of a body designated by earlier regulations under section 21; and those bodies are referred to as the “new body” and the “former body” respectively.N.I.
(2) The Regulations may make provision authorising the Department to make a scheme (a “transfer scheme”) for the transfer of property, rights and liabilities from the former body to the new body.
(3) The Regulations may provide that a transfer scheme may include provision—
(a)about the transfer of property, rights and liabilities that could not otherwise be transferred;
(b)about the transfer of property acquired, and rights and liabilities arising, after the making of the scheme.
(4) The Regulations may provide that a transfer scheme may make consequential, supplementary, incidental or transitional provision and may in particular—
(a)create rights, or impose liabilities, in relation to property or rights transferred;
(b)make provision about the continuing effect of things done by the former body in respect of anything transferred;
(c)make provision about the continuation of things (including legal proceedings) in the process of being done by, on behalf of or in relation to the former body in respect of anything transferred;
(d)make provision for references to the former body in an instrument or other document in respect of anything transferred to be treated as references to the new body;
(e)make provision for the shared ownership or use of property;
(f)if the TUPE regulations do not apply to in relation to the transfer, make provision which is the same or similar.
(5) The Regulations must provide that, where the former body is an existing body, a transfer scheme may only make provision in relation to—
(a)things done by or in relation to the former body in or in connection with the exercise of functions conferred on it by previous regulations under section 21; and
(b)functions of the body which are functions so conferred.
(6) In sub-paragraph (4)(f), “TUPE regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246).
(7) In this paragraph—
(a)references to rights and liabilities include rights and liabilities relating to a contract of employment;
(b)references to the transfer of property include the grant of a lease.
Additional provision where body is unincorporated associationN.I.
14—(1) This paragraph applies where the body is an unincorporated association.N.I.
(2) The Regulations must provide that any relevant proceedings may be brought by or against the body in the name of any body corporate whose constitution provides for the establishment of the body.
(3) In sub-paragraph (2) “relevant proceedings” means proceedings brought in or in connection with the exercise of any function conferred on the body by the Regulations.
Section 27(1).
SCHEDULE 2N.I.TRANSITIONAL PROVISIONS
Prospective
Requirements relating to meetingsN.I.
1 The amendments made to Articles 79 and 91 of the Insolvency Order (progress reports in a winding up) by section 3 do not apply in respect of a company in voluntary winding up where the resolution for voluntary winding up was passed before the day on which section 3 comes into operation.N.I.
2 The amendments made to Articles 81 and 84 of the Insolvency Order by section 4 (notice of creditors' meeting) do not apply in respect of a company in voluntary winding up where the resolution for voluntary winding up was passed before the day on which section 4 comes into operation.N.I.
Prospective
Reports in individual voluntary arrangementsN.I.
3 The amendments made to the Insolvency Order by section 5 do not apply in respect of a proposal for a voluntary arrangement under Part 8 of the Insolvency Order where—N.I.
(a)Article 230A of that Order applies; and
(b)a person agrees to act as nominee in respect of the proposal before the day on which section 5 comes into operation.
Powers of liquidatorN.I.
4 The amendments made to Schedule 2 to the Insolvency Order (powers of liquidator in a winding up) by section 7 do not apply in respect of any proceedings under the Insolvency Order where—N.I.
(a)in the case of a company in voluntary winding up, the resolution for voluntary winding up was passed before the day on which section 7 comes into operation;
(b)in the case of a company in voluntary winding up pursuant to paragraph 84 of Schedule B1 to the Insolvency Order (moving from administration to creditors' voluntary liquidation), the company entered the preceding administration before the day on which section 7 comes into operation;
(c)in the case of a company in winding up following an order for the conversion of administration or a voluntary arrangement into winding up by virtue of Article 37 of Council Regulation (EC) No. 1346/2000 on insolvency proceedings, the order for conversion was made before the day on which section 7 comes into operation; and
(d)in the case of a company being wound up by the High Court, the winding up order was made before the day on which section 7 comes into operation.
Powers of trusteeN.I.
5 The amendments made to Schedule 3 to the Insolvency Order (powers of trustee in bankruptcy) by section 8 do not apply in respect of any proceedings under the Insolvency Order where—N.I.
(a)the debtor was adjudged bankrupt before the day on which section 8 comes into operation; and
(b)in the case of a bankruptcy following an order for the conversion of a voluntary arrangement into a bankruptcy by virtue of Article 37 of Council Regulation (EC) No. 1346/2000, the order for conversion was made before the day on which section 8 comes into operation.
Definition of debtN.I.
6 The amendments made to the Insolvency Order by section 9 apply where a company enters administration on or after the relevant day, except where—N.I.
(a)the company enters administration by virtue of an administration order under paragraph 11 of Schedule B1 to the Insolvency Order on an application made before the relevant day;
(b)the administration is immediately preceded by a voluntary liquidation in respect of which the resolution to wind up was passed before the relevant day;
(c)the administration is immediately preceded by a liquidation on the making of a winding up order on a petition which was presented before the relevant day.
7 The amendments made to the Insolvency Order by section 9 apply where a company goes into liquidation upon the passing on or after the relevant day of a resolution to wind up.N.I.
8 The amendments made to the Insolvency Order by section 9 apply where a company goes into voluntary liquidation under paragraph 84 of Schedule B1 to the Insolvency Order, except where—N.I.
(a)the company entered the preceding administration before the relevant day; or
(b)the company entered the preceding administration by virtue of an administration order under paragraph 11 of Schedule B1 to the Insolvency Order on an application which was made before the relevant day.
9 The amendments made to the Insolvency Order by section 9 apply where a company goes into liquidation on the making of a winding up order on a petition presented on or after the relevant day, except where the liquidation is immediately preceded by—N.I.
(a)an administration under paragraph 11 of Schedule B1 to the Insolvency Order where the administration order was made on an application made before the relevant day;
(b)an administration in respect of which the appointment of an administrator under paragraph 15 or 23 of Schedule B1 to the Insolvency Order took effect before the relevant day; or
(c)a voluntary liquidation in respect of which the resolution to wind up was passed before the relevant day.
10 In paragraphs 6 to 9, “the relevant day” means the day on which section 9 comes into operation.N.I.
Authorisation of insolvency practitionersN.I.
11 For the purposes of this paragraph and paragraphs 12 to 16—N.I.
-
“the commencement date” is the date on which section 14(5) comes into operation;
-
“the transitional period” is the period of 1 year beginning with the commencement date.
12 Where, immediately before the commencement date, a person holds an authorisation granted under Article 352 of the Insolvency Order, Article 352(3A) to (6) of that Order together with, for the purposes of this paragraph, sub-paragraphs (a) and (b) of Article 352(2) of that Order (which are repealed by section 14(5)) continue to have effect in relation to the person and the authorisation during the transitional period.N.I.
13 During the transitional period, a person to whom paragraph 12 applies is to be treated for the purposes of Part 12 of the Insolvency Order as fully authorised under Article 349A of that Order (as inserted by section 14(3) of this Act) to act as an insolvency practitioner unless and until the person's authorisation is (by virtue of paragraph 12) withdrawn.N.I.
14 Where, immediately before the commencement date, a person has applied under Article 351 of the Insolvency Order for authorisation to act as an insolvency practitioner and the application has not been granted, refused or withdrawn, Article 351(4) to (7) and 352(1) and (2) of that Order (which are repealed by section 14(5)) continue to have effect in relation to the person and the application during the transitional period.N.I.
15 Where, during the transitional period, an authorisation is (by virtue of paragraph 14) granted under Article 352 of the Insolvency Order, paragraphs 12 and 13 apply as if—N.I.
(a)the authorisation had been granted immediately before the commencement date;
(b)in paragraph 12, the reference to Article 352(3A) to (6) were a reference to Article 352(4) to (6).
16 For the purposes of paragraphs 12 and 14, Articles 353 and 354 of the Insolvency Order (which are repealed by section 14(5)) continue to have effect during the transitional period.N.I.
Section 27(2).
SCHEDULE 3N.I.MINOR AND CONSEQUENTIAL AMENDMENTS
The Solicitors (Northern Ireland) Order 1976 (NI 12)N.I.
1 In Article 13(1)(k), for the words from “has entered” to the end substitute “ a composition or scheme proposed by the solicitor has been approved under Chapter 2 of Part 8 of the Insolvency (Northern Ireland) Order 1989. ”.N.I.
2 In Article 14A(2)(b), for paragraph (b) substitute—N.I.
“(b)a composition or scheme proposed by the solicitor has been approved under Chapter 2 of Part 8 of the Insolvency (Northern Ireland) Order 1989; or”.
3 In Article 41(3)(a), for the words from “or enters” to “dies” substitute “ , or a composition or scheme proposed by the solicitor has been approved under Chapter 2 of Part 8 of the Insolvency (Northern Ireland) Order 1989 or the solicitor dies ”.N.I.
The Insolvency (Northern Ireland) Order 1989 (NI 19)N.I.
4 In Article 14(2), omit “or authorised to act as nominee,”.N.I.
5 In Article 15(4), omit “, or authorised to act as nominee,”.N.I.
6 In Article 17(2), omit “or authorised to act as nominee,”.N.I.
7 In Article 20(5), omit “or authorised to act as supervisor,”.N.I.
8 In Article 103(1)(a), for “a demand” substitute “ a written demand ”.N.I.
9 In Article 185, after paragraph (2) insert—N.I.
“(2A) For all purposes of winding up, the principal place of business in Northern Ireland of the unregistered company is deemed to be the registered office of the company.”.
10 In Article 186(1)(a) after “written demand” insert “ (known as “the statutory demand”) ”.N.I.
11 In Article 242(1)(a) for “a demand” substitute “ a written demand ”.N.I.
12 In Article 242(2)(a) for “a demand” substitute “ a written demand ”.N.I.
13 In Article 343(1), after “the interim receiver” insert “ or ”.N.I.
14 Omit Article 348(1A).N.I.
15 Omit Article 348A.N.I.
Prospective
16 Omit Article 361A(2).N.I.
17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.
18 In Schedule B1, in paragraph 1A, for “outside Northern Ireland” substitute “ outside the United Kingdom ”.N.I.
19 In Schedule 1, in paragraph 3, at the beginning insert “ Without prejudice to Article 28 or 30 of the Property (Northern Ireland) Order 1997, ”.N.I.
Prospective
The Pensions (Northern Ireland) Order 2005 (NI 1)N.I.
20 In Article 105(2)(b), for “or 230A(3)” substitute “ of that Order or a report to the individual's creditors under Article 230A(3) ”.N.I.
Prospective
The Insolvency (Northern Ireland) Order 2005 (NI 10)N.I.
21 Omit Article 26(3).N.I.
Section 27(3).
SCHEDULE 4N.I.REPEALS
Short Title | Extent of Repeal |
---|---|
The Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 (NI 11) | |
The Insolvency (Northern Ireland) Order 1989 (NI 19) | In Article 2(2), in the definition of “prescribed”, the words “, 212(h) and 222”. |
Article 3(2)(b). | |
In Article 4(5)(a), the words “(other than Chapter 1 of Part 8)”. | |
In Article 5(1), the definition of “nominee”. | |
In Article 9(1), the definitions of “creditors generally”, “deed of arrangement”, “nominee” and “the registrar”. | |
Article 9(3). | |
In Article 14(2), the words “or authorised to act as nominee,”. | |
In Article 15(4), the words “, or authorised to act as nominee,”. | |
In Article 17(2), the words “or authorised to act as nominee,”. | |
In Article 20(5), the words “or authorised to act as supervisor,”. | |
Article 31(10). | |
Article 54(2D). | |
In Article 81(2)(b)(i), the words “by post”. | |
In Article 84(1)(b)(i), the words “by post”. | |
In Article 185(2), the words from “, and the principal” to the end. | |
In Part 8, Chapter 1. | |
Article 234(3). | |
Article 237D(6). | |
Article 253(2). | |
In Article 344, the words “(other than Chapter 1 of Part 8)”. | |
Article 348(1A). | |
Article 348A. | |
Articles 351 to 354. | |
Article 361A(2). | |
In Article 362(1)(a), the entries relating to Articles 215(5) and 221(4). | |
In Part 1 of Schedule 2, paragraph 3. | |
In Schedule 4, paragraph 15(b) and the preceding “and”. | |
In Schedule 6, in the cross-heading preceding paragraph 6, the words “Deeds of arrangement and”. | |
In Schedule 6, in paragraph 25(a) and (c), the words “, the trustee of a deed of arrangement”. | |
In Schedule 6, in paragraph 28, the words “deeds of arrangement,”. | |
In Schedule 7, the entry relating to Article 218(1). | |
In Schedule 8, paragraph 17 and the preceding cross-heading. | |
The Licensing (Northern Ireland) Order 1996 (NI 22) | |
The Insolvency (Northern Ireland) Order 2002 (NI 6) | Article 6(2) and (3). |
The Pensions (Northern Ireland) Order 2005 (NI 1) | Article 105(2)(c). |
The Insolvency (Northern Ireland) Order 2005 (NI 10) | Article 26(3). |