Source: http://www.niassembly.gov.uk/assembly-business/legislation/2011-2016-mandate/primary-legislation-current-bills/insolvency-amendment-bill/insolvency-amendment-bill-as-introduced/
Timestamp: 2017-10-21 06:55:26
Document Index: 290601605

Matched Legal Cases: ['art 2', 'art 2', 'art 8', 'art 1', 'art 8', 'art 12', 'art 12', 'art 8']

Assembly Legislation - Insolvency (Amendment) Bill as Introduced
Insolvency (Amendment) Bill/
Insolvency (Amendment) Bill as Introduced
1. Attendance at meetings and use of websites
2. References to things in writing
3. Removal of requirement for annual meetings in a members’ voluntary and a creditors’ voluntary winding up
4. Requirements in relation to meetings under Articles 81 and 84 of the Insolvency Order
5. Individual voluntary arrangements: removal of requirement to submit a nominee’s report to the High Court
6. Fast-track voluntary arrangements: notification of the Department
7. Powers of liquidator exercisable with or without sanction in a winding up
8. Powers of trustee exercisable with or without sanction in a bankruptcy
9. Definition of debt
10. Treatment of liabilities relating to contracts of employment
11. Deeds of arrangement
12. Bankruptcy: early discharge procedure
13. After-acquired property of bankrupt
14. Authorisation of insolvency practitioners
16. Company arrangement or administration provision to apply to a credit union
17. Disqualification from office: duty to consult the Lord Chief Justice
19. Transitional provisions, minor and consequential amendments and repeals
Amend the law relating to insolvency; and for connected purposes.
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.
(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.
(a) enable those attending the meeting to exercise their rights to speak or vote; and
(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,
(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.
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
(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.”.
345A.—(1) Where—
(b) a voluntary arrangement in relation to an individual is proposed or is approved under Chapter 2 of Part 8,
(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—
(c) that request is made by not less than 10 per cent. in value of the creditors,
345B.—(1) This Article applies where—
(b) in such circumstances as may be prescribed.”.
References to things in writing
2.—(1) After Article 2A of the Insolvency Order (proceedings under EC Regulation: modified definition of property) insert—
2B.—(1) A reference in this Order to a thing in writing includes that thing in electronic form.
(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).”.
“Progress report to company at year’s end
79.—(1) Subject to Articles 82 and 88, in the event of the winding up of a company continuing for more than one year, the liquidator must—
(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—
“Progress report to company and creditors at year’s end
91.—(1) If the winding up of a company continues for more than one year, the liquidator must—
(i) the members and creditors of the company; and
(a) for the entry relating to Article 79(3) substitute—
“79(2)
Liquidator failing to send progress report to members at year’s end.
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 at year’s end.
Individual voluntary arrangements: removal of requirement to submit a nominee’s report to the High Court
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 replacement under 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 Department
6. In Article 237C of the Insolvency Order (result) after “Court” insert “, and notify the Department,”.
(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,
(a) paragraph 6 is repealed; and
(b) in paragraph 8, the words “or by the trustee on any person” are repealed.
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.”.
9.—(1) The Insolvency Order is amended as follows.
(i) in the case of a winding up which was not immediately preceded by an administration, at the date on which the company went into liquidation;
(ii) in the case of a winding up which was immediately preceded by an administration, at the date on which the company entered administration;
(iii) in the case of an administration which was not immediately preceded by a winding up, at the date on which the company entered administration;
(iv) in the case of an administration which was immediately preceded by a winding up, at the date on which the company went into liquidation; or
(b) all the elements necessary to establish the cause of action exist at that date except for actionable damage.”.
(a) for “Article 2(3)” substitute “Article 2(3A)”;
(b) in sub-paragraph (a) for the words from “date” to the end substitute “relevant date;”;
(c) in sub-paragraph (b) for “that date” in the first place it occurs substitute “the relevant date”;
(d) in sub-paragraph (c) for the words from “company” to the end substitute “relevant date;”.
(a) in the case of a winding up which was not immediately preceded by an administration, the date on which the company went into liquidation;
(b) in the case of a winding up which was immediately preceded by an administration, the date on which the company entered administration;
(c) in the case of an administration which was not immediately preceded by a winding up, the date on which the company entered administration;
(d) in the case of an administration which was immediately preceded by a winding up, the date on which the company went into liquidation.”.
10.—(1) The Insolvency Order is amended as follows.
11.—(1) Chapter 1 of Part 8 of the Insolvency Order (deeds of arrangement) is repealed.
(3) No order may be made under this section unless a draft of the order has been laid before and approved by resolution of the Assembly.
Bankruptcy: early discharge procedure
12. Article 253(2) of the Insolvency Order (duration of bankruptcy) is repealed.
(a) omit sub-paragraph (b) (provision about bankers) and the preceding “or”;
(b) in the words after sub-paragraph (b)—
(i) omit “or transaction”;
(ii) omit “or banker” (in both places where the words occur).
“(4A) Where a banker enters into a transaction before the service on the banker of a notice under this Article the trustee is not in respect of that transaction entitled by virtue of this Article to any remedy against the banker.
14.—(1) Part 12 of the Insolvency Order (insolvency practitioners and their qualification) is amended as set out in subsections (2) to (5).
“(2) A person is not qualified to act as an insolvency practitioner at any time unless at that time the person is appropriately authorised under Article 349A of this Order or section 390A of the Insolvency Act 1986 (authorisation).”.
349A.—(1) In this Part—
(a) only in relation to companies, or
(b) only in relation to individuals;
(a) by virtue of being a member of a professional body recognised under Article 350(1) and being permitted to act as an insolvency practitioner in relation only to companies or only to individuals by or under the rules of that body, or
(b) by virtue of being a member of a professional body recognised under Article 350(2) and being permitted to act as an insolvency practitioner by or under the rules of that body.
349B.—(1) A person who is partially authorised may not accept an appointment to act as an insolvency practitioner in relation to a company or an individual if at the time of the appointment the person is aware that the company or individual—
(a) is or was a member of a partnership; and
(2) Subject to paragraph (7), a person who is partially authorised may not continue to act as an insolvency practitioner in relation to a company or an individual if the person becomes aware that the company or individual—
(3) The High Court may grant the person permission to continue to act if it is satisfied that the person is competent to do so.
(4) A person who is partially authorised and becomes aware as mentioned in paragraph (2) may alternatively apply to the High Court for an order (a “replacement order”) appointing in his or her place a person who is fully authorised to act as an insolvency practitioner in relation to the company or (as the case may be) the individual.
(5) A person may apply to the High Court for permission to continue to act or for a replacement order under—
(a) where acting in relation to a company, Article 143(5B) or this Article;
(b) where acting in relation to an individual, Article 276(2C) or this Article.
(6) A person who acts as an insolvency practitioner in contravention of paragraph (1) or (2) is guilty of an offence under Article 348 (acting without qualification).
(7) A person does not contravene paragraph (2) by continuing to act as an insolvency practitioner during the permitted period if, within the period of 7 business days beginning with the day after the day on which the person becomes aware as mentioned in paragraph (2), the person—
(a) applies to the High Court for permission to continue to act, or
(b) applies to the High Court for a replacement order.
“permitted period” means the period beginning with the day on which the person became aware as mentioned in paragraph (2) and ending on the earlier of—
(a) the expiry of the period of 6 weeks beginning with the day on which the person applies to the High Court as mentioned in paragraph (7)(a) or (b), and
(b) the day on which the High Court disposes of the application (by granting or refusing it);
“replacement order” has the meaning given by paragraph (4).”.
350.—(1) The Department may by order declare a body which appears to it to meet the requirements of paragraph (4) to be a recognised professional body which is capable of providing its insolvency specialist members with full authorisation or partial authorisation.
(2) The Department may by order declare a body which appears to it to meet the requirements of paragraph (4) to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only.
(3) An order under paragraph (2) must state whether the partial authorisation relates to companies or to individuals.
(4) The requirements are that the body—
(a) regulates the practice of a profession, and
(b) maintains and enforces rules for securing that its insolvency specialist members—
(i) are fit and proper persons to act as insolvency practitioners, and
(ii) meet acceptable requirements as to education and practical training and experience.
(5) The Department must make an order revoking an order under paragraph (1) or (2) in relation to a professional body if it appears to the Department that the body no longer meets the requirements of paragraph (4).
(6) The Department must make an order revoking an order under paragraph (1) and replacing it with an order under paragraph (2) in relation to a professional body if it appears to the Department that the body is capable of providing its insolvency specialist members with partial authorisation only.
(7) An order of the Department under this Article—
(a) shall be subject to negative resolution; and
(b) shall have effect from such date as is specified in the order.
(8) An order revoking an order made under paragraph (1) or (2) may make provision whereby members of the body in question continue to be treated as fully or partially authorised to act as insolvency practitioners (as the case may be) for a specified period after the revocation takes effect.
(a) references to members of a recognised professional body are to persons who, whether members of that body or not, are subject to its rules in the practice of the profession in question (and the references in Article 349A to members of a recognised professional body are to be read accordingly);
(b) references to insolvency specialist members of a professional body are to members who are permitted by or under the rules of the body to act as insolvency practitioners.”.
(a) in paragraph (1)(b) after “Article 350(1)” insert “or (2)”;
(b) after paragraph (1) (fees for grant or maintenance of recognition of professional body) insert—
15.—(1) Article 363 of the Insolvency Order (regulations for purposes of Part 12) is amended as follows.
(a) after “generality of” insert “paragraph (1) or”;
(b) for “regulations may contain” substitute “regulations under this Article may contain”.
16. 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.”.
17. 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.”.
Transitional provisions, minor and consequential amendments and repeals
19.—(1) Schedule 1 (which makes provision with respect to transition) has effect.
(2) Schedule 2 (which makes minor and consequential amendments) has effect.
20.—(1) This section and sections 18 and 21 come into operation on the day after the day on which this Act receives Royal Assent.
21. This Act may be cited as the Insolvency (Amendment) Act (Northern Ireland) 2014.
Section 19 (1) .
(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.
(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.
(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.
(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.
(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.
(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.
(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).
“(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”.
4. In Article 103(1)(a), for “a demand” substitute “a written demand”.
5. In Article 185, after paragraph (2) insert—
6. In Article 186(1)(a) after “written demand” insert “(known as “the statutory demand”)”.
7. In Article 242(1)(a) for “a demand” substitute “a written demand”.
8. In Article 242(2)(a) for “a demand” substitute “a written demand”.
9. In Article 343(1), after “the interim receiver” insert “or”.
10. Omit Article 348(1A).
11. Omit Article 348A.
12. Omit Article 361A(2).
13. In Schedule B1, in paragraph 1A, for “outside Northern Ireland” substitute “outside the United Kingdom”.
14. In Schedule 1, in paragraph 3, at the beginning insert “Without prejudice to Article 28 or 30 of the Property (Northern Ireland) Order 1997,”.
15. 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)”.
16. Omit Article 26(3).
Section 19 (3) .
In Article 15(8)—
(a) in sub-paragraph (a), the words from “or becomes” to “creditors,”;
(b) the words “trustee under the deed,”.
In Article 40(4)—
In Article 66(7)—
In Article 86(7)—
In Article 114(7)—
In Article 143(5)—
(b) the words “trustee under the deed”.
In Article 160(7)—
In Article 2(2), in the definition of “prescribed”, the words “, 212(h) and 222”.
(a) paragraph (4)(b) and the preceding “or”;
(b) in paragraph (4) the words “or transaction”;
(c) in paragraph (4), the words “or banker” in both places where they occur.
(a) sub-paragraph (c) and the preceding “or”;
(b) the words “or the trustee under the deed of arrangement”.
(a) paragraph 1(2);
(b) paragraph 100(6)(d) but not the “and” following it.
(a) paragraph 6;
(b) in paragraph 8, the words “or by the trustee on any person”.
(a) the words from “for endorsement” to “Article 211 and”;
(b) the word “other”.
(a) in sub-paragraph (a), the words from “or a trustee” to “creditors,”;
The Insolvency (Northern Ireland) Order 2002 (NI 6)
Article 6(2) and (3).
Article 105(2)(c).
Article 26(3).