Contents
- Introductory
- Companies etc.
- Individuals
- Money
- Miscellaneous
- Schedule 1 Schedule B1 to the 1989 order
- Schedule 2 Administration: minor and consequential amendments
- Schedule 3 Schedule 1A to the 1989 order
- Schedule 4 Duration of bankruptcy: transitional provisions
- Schedule 5 Schedule 2A to the 1989 order
- Schedule 6 Effect of bankruptcy restrictions order and undertaking
- Schedule 7 Individual voluntary arrangement
- Schedule 8 Individual insolvency: minor and consequential amendments
- Schedule 9 Repeals
Introductory
Article 1Title and commencement#
This Order may be cited as the Companies (Public Sector Audit) Order (Northern Ireland) 2008 and shall come into operation on 1st July 2008.
(1)This Order may be cited as the Insolvency (Northern Ireland) Order 2005.
(2)This Article and Article 2 shall come into operation on the expiration of 7 days from the day on which this Order is made.
(3)The other provisions of this Order shall come into operation on such day or days as the Department may by order appoint.
Article 2Interpretation#
(1)The Interpretation Act (Northern Ireland) 1954 (c. 33) applies to this Order as it applies to an Act of the Assembly.
(2)In this Order—
• “the Department” means the Department of Enterprise, Trade and Investment;• “the 1989 Order” means the Insolvency (Northern Ireland) Order 1989 (NI 19);• “statutory provision” has the meaning given in section 1(f) of the Interpretation Act (Northern Ireland) 1954.•
Companies etc.
Article 3Replacement of Part III of the 1989 Order#
(1)The following shall be substituted for Part III of the 1989 Order (administration orders)—“21 Schedule B1 (which makes provision about the administration of companies) shall have effect.”
(2)The Schedule B1 set out in Schedule 1 to this Order shall be inserted after Schedule A1 to the 1989 Order.
(3)Schedule 2 (minor and consequential amendments relating to administration) shall have effect.
(4)The Department may by order amend any statutory provision in consequence of this Article.
(5)An order under paragraph (4) shall be subject to negative resolution.
Article 4Special administration regimes#
(1)Article 3 shall have no effect in relation to—
(a)a licence company within the meaning of section 26 of the Transport Act 2000 (c. 38) (air traffic services), or
(2)A reference in an Act listed in paragraph (1) to a provision of Part III of the 1989 Order (or to a provision which has effect in relation to a provision of that Part of that Order) shall, in so far as it relates to a licence company or a building society, continue to have effect as if it referred to Part III as it had effect immediately before the coming into operation of Article 3.
(3)But the effect of paragraph (2) in respect of a particular class of licence company or building society may be modified by order of—
(a)the Department, in the case of a licence company, or
(b)the Treasury, in the case of a building society.
(4)An order under paragraph (3) may make consequential amendment of a statutory provision.
(5)An order under paragraph (3) shall—
(a)where it is made by the Department, be subject to negative resolution, and
(b)where it is made by the Treasury, be subject to annulment in like manner as a statutory instrument and section 5 of the Statutory Instruments Act 1946 (c. 36) shall apply accordingly.
(6)An amendment of the 1989 Order made by this Order is without prejudice to any power conferred by Part V of the Companies (No. 2) (Northern Ireland) Order 1990 (NI 10) (financial markets) to modify the law of insolvency.
Article 5Prohibition on appointment of administrative receiver#
(1)The following shall be inserted at the end of Part IV of the 1989 Order (receivership)—“59A 1 The holder of a qualifying floating charge in respect of a company's property may not appoint an administrative receiver of the company.2 In paragraph (1) “holder of a qualifying floating charge in respect of a company's property” has the same meaning as in paragraph 15 of Schedule B1.3 This Article applies—a to a floating charge created on or after a date appointed by the Department by order, andb in spite of any provision of an agreement or instrument which purports to empower a person to appoint an administrative receiver (by whatever name).4 An order under paragraph (3)(a) may—a make provision which applies generally or only for a specified purpose;b make different provision for different purposes;c make transitional provision.5 This Article is subject to the exceptions specified in Articles 59B to 59I.59B 1 Article 59A does not prevent the appointment of an administrative receiver in pursuance of an agreement which is or forms part of a capital market arrangement if—a a party incurs or, when the agreement was entered into was expected to incur, a debt of at least £50 million under the arrangement, andb the arrangement involves the issue of a capital market investment.2 In paragraph (1)—• “capital market arrangement” means an arrangement of a kind described in paragraph 1 of Schedule 1A, and• “capital market investment” means an investment of a kind described in paragraph 2 or 3 of that Schedule.59C 1 Article 59A does not prevent the appointment of an administrative receiver of a project company of a project which—a is a public-private partnership project, andb includes step-in rights.2 In this Article “public-private partnership project” means a project—a the resources for which are provided partly by one or more public bodies and partly by one or more private persons, orb which is designed wholly or mainly for the purpose of assisting a public body to discharge a function.3 In this Article—• “step-in rights” has the meaning given by paragraph 6 of Schedule 1A, and• “project company” has the meaning given by paragraph 7 of that Schedule.59D 1 Article 59A does not prevent the appointment of an administrative receiver of a project company of a project which—a is a utility project, andb includes step-in rights.2 In this Article—a “utility project” means a project designed wholly or mainly for the purpose of a regulated business,b “regulated business” means a business of a kind listed in paragraph 10 of Schedule 1A,c “step-in rights” has the meaning given by paragraph 6 of that Schedule, andd “project company” has the meaning given by paragraph 7 of that Schedule.59E 1 Article 59A does not prevent the appointment of an administrative receiver of a project company of a project which—a is designed wholly or mainly to develop land which at the commencement of the project is wholly or partly in a designated disadvantaged area in Northern Ireland, andb includes step-in rights.2 In paragraph (1) “develop” means to carry out—a building operations,b any operation for the removal of substances or waste from land and the levelling of the surface of the land, orc engineering operations in connection with the activities mentioned in sub-paragraph (a) or (b).3 In this Article—• “building” includes any structure or erection, and any part of a building as so defined, but does not include plant and machinery comprised in a building,• “building operations” includes—(a) demolition of buildings,(b) filling in of trenches,(c) rebuilding,(d) structural alterations of, or additions to, buildings and(e) other operations normally undertaken by a person carrying on business as a builder,• “designated disadvantaged area” means an area designated as a disadvantaged area under section 92 of the Finance Act 2001 (c. 9),• “engineering operations” includes the formation and laying out of means of access to highways,• “project company” has the meaning given by paragraph 7 of Schedule 1A,• “step-in rights” has the meaning given by paragraph 6 of that Schedule,• “substance” means any natural or artificial substance whether in solid or liquid form or in the form of a gas or vapour, and• “waste” includes any waste materials, spoil, refuse or other matter deposited on land.59F 1 Article 59A does not prevent the appointment of an administrative receiver of a project company of a project which—a is a financed project, andb includes step-in rights.2 In this Article—a a project is “financed” if under an agreement relating to the project a project company incurs, or when the agreement is entered into is expected to incur, a debt of at least £50 million for the purposes of carrying out the project,b “project company” has the meaning given by paragraph 7 of Schedule 1A, andc “step-in rights” has the meaning given by paragraph 6 of that Schedule.59G Article 59A does not prevent the appointment of an administrative receiver of a company by virtue of—a a market charge within the meaning of Article 95 of the Companies (No. 2) (Northern Ireland) Order 1990 (NI 10),b a system-charge within the meaning of the Financial Markets and Insolvency Regulations (Northern Ireland) 1996 (SR 1996 No. 252).59H Article 59A does not prevent the appointment of an administrative receiver of a housing association which is registered as such under Chapter II of Part II of the Housing (Northern Ireland) Order 1992 (NI 15).59I Article 59A does not prevent the appointment of an administrative receiver of a licence company within the meaning of section 26 of the Transport Act 2000 (c. 38).59J 1 Schedule 1A (which supplements Articles 59A to 59I) shall have effect.2 The Department may by order—a insert into this Order provision creating an additional exception to Article 59A(1);b provide for a provision of this Order which creates an exception to Article 59A(1) to cease to have effect;c amend Article 59A in consequence of provision made under sub-paragraph (a) or (b);d amend any of Articles 59B to 59I;e amend Schedule 1A.3 An order under paragraph (2) may make—a provision which applies generally or only for a specified purpose;b different provision for different purposes;c consequential or supplementary provision;d transitional provision.4 An order under paragraph (2)—a in the case of an order under paragraph (2)(e), shall be subject to negative resolution,b in the case of an order under paragraph (2)(d) varying the sum specified in Article 59B(1)(a) or 59F(2)(a) (whether or not the order also makes consequential or transitional provision), shall be subject to negative resolution, andc in the case of any other order under paragraph (2)(a) to (d), shall be subject to affirmative resolution.”
(2)The Schedule 1A set out in Schedule 3 to this Order shall be inserted after Schedule 1 to the 1989 Order.
Article 6Abolition of Crown preference#
(1)The following paragraphs of Schedule 4 to the 1989 Order (categories of preferential debts) shall cease to have effect—
(a)paragraphs 1 and 2 (debts due to Inland Revenue),
(b)paragraphs 3 to 5C (debts due to Customs and Excise), and
(c)paragraphs 6 and 7 (social security contributions).
(2)In Article 346 of the 1989 Order (categories of preferential debts) in paragraph (1) for the parenthetical words after “Schedule 4” there shall be substituted “ (contributions to occupational pension schemes; remuneration, &c. of employees; levies on coal and steel production) ”.
Article 7Unsecured creditors#
(1)The following shall be inserted after Article 150 of the 1989 Order (winding up: preferential debt)—“150A 1 This Article applies where a floating charge relates to property of a company—a which has gone into liquidation,b which is in administration,c of which there is a provisional liquidator, ord of which there is a receiver.2 The liquidator, administrator or receiver—a shall make a prescribed part of the company's net property available for the satisfaction of unsecured debts, andb shall not distribute that part to the proprietor of a floating charge except in so far as it exceeds the amount required for the satisfaction of unsecured debts.3 Paragraph (2) shall not apply to a company if—a the company's net property is less than the prescribed minimum, andb the liquidator, administrator or receiver thinks that the cost of making a distribution to unsecured creditors would be disproportionate to the benefits.4 Paragraph (2) shall also not apply to a company if or in so far as it is disapplied by—a a voluntary arrangement in respect of the company, orb a compromise or arrangement agreed under Article 418 of the Companies Order (compromise with creditors and members).5 Paragraph (2) shall also not apply to a company if—a the liquidator, administrator or receiver applies to the High Court for an order under this paragraph on the ground that the cost of making a distribution to unsecured creditors would be disproportionate to the benefits, andb the Court orders that paragraph (2) shall not apply.6 In paragraphs (2) and (3) a company's net property is the amount of its property which would, but for this Article, be available for satisfaction of claims of holders of debentures secured by, or holders of, any floating charge created by the company.7 An order under paragraph (2) prescribing part of a company's net property may, in particular, provide for its calculation—a as a percentage of the company's net property, orb as an aggregate of different percentages of different parts of the company's net property.8 An order under this Article shall be subject to negative resolution.9 In this Article—• “floating charge” means a charge which is a floating charge on its creation and which is created after the first order under paragraph (2)(a) comes into operation, and• “prescribed” means prescribed by order by the Department.10 An order under this Article may include transitional or incidental provision.”
(2)In Article 2(2) of the 1989 Order (general interpretation), in paragraph (b) in the definition of “prescribed” after “sub-paragraph (a)” there shall be inserted “ in Article 150A(9) ”.
Article 8Liquidator's powers#
The following shall be inserted in Part I of Schedule 2 to the 1989 Order (liquidator's powers in winding up: powers exercisable only with sanction) after paragraph 3—“3A Power to bring legal proceedings under Article 177, 178, 202, 203 or 367.”
Article 9Application of insolvency law to company incorporated outside Northern Ireland#
(1)The Department may by order provide for a provision of the 1989 Order to apply (with or without modification) in relation to a company incorporated outside Northern Ireland.
(2)An order under this Article—
(a)may make provision generally or for a specified purpose only,
(b)may make different provision for different purposes, and
(c)may make transitional, consequential or incidental provision.
(3)An order under this Article shall be subject to negative resolution.
Article 10Application of law about company arrangement or administration to non-company etc#
(1)The Treasury may with the concurrence of the Secretary of State by order provide for a company arrangement or administration provision to apply (with or without modification) in relation to—
(a)a society registered under section 7(1)(b), (c), (d), (e) or (f) of the Friendly Societies Act 1974 (c. 46),
(b)a friendly society within the meaning of the Friendly Societies Act 1992 (c. 40), or
(c)an unregistered friendly society.
(2)The Department may by order provide for —
(i)Part 1A of the 1989 Order (moratorium), or
(a)a registered society within the meaning of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969, or
(b)a credit union within the meaning of the Credit Unions (Northern Ireland) Order 1985.
to apply (with or without modification) in relation to —
(3)In paragraphs (1) and (2) “company arrangement or administration provision” means—
(a)a provision of Part II of the 1989 Order (company voluntary arrangements),
(b)a provision of Part III of that Order (administration), note...
(c)Part 26 of the Companies Act 2006 (compromise or arrangement with creditors) , and
(d)Part 26A of that Act (compromise or arrangement with creditors where company in financial difficulty).
(4)An order under paragraph (1) or (2) may not provide for a company arrangement or administration provision to apply in relation to a society which is registered as a housing association under Part II of the Housing (Northern Ireland) Order 1992 (NI 15).
(5)An order under paragraph (1) or (2)—
(a)may make provision generally or for a specified purpose only,
(b)may make different provision for different purposes, and
(c)may make transitional, consequential or incidental provision.
(6)Provision by virtue of paragraph (5)(c) may, in particular—
(a)apply a statutory provision (with or without modification);
(b)amend a statutory provision.
(7)An order under paragraph (1) shall be subject to annulment in pursuance of a resolution of either House of Parliament in like manner as a statutory instrument and section 5 of the Statutory Instruments Act 1946 (c. 36) shall apply accordingly.
(8)An order under paragraph (2) shall be subject to negative resolution.
Article 11Voluntary arrangements: minor amendments#
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Individuals
Article 12Duration of, and discharge from, bankruptcy#
(1)The following shall be substituted for Article 253 of the 1989 Order (duration of bankruptcy)—“253 1 A bankrupt is discharged from bankruptcy at the end of the period of one year beginning with the date on which the bankruptcy commences.2 If before the end of that period the official receiver files with the High Court a notice stating that investigation of the conduct and affairs of the bankrupt under Article 262 is unnecessary or concluded, the bankrupt is discharged when the notice is filed.3 On the application of the official receiver or the trustee of a bankrupt's estate, the High Court may order that the period specified in paragraph (1) shall cease to run until—a the end of a specified period, orb the fulfilment of a specified condition.4 The High Court may make an order under paragraph (3) only if satisfied that the bankrupt has failed or is failing to comply with an obligation under this Part.5 In paragraph (3)(b) “condition” includes a condition requiring that the High Court be satisfied of something.6 This Article is without prejudice to any power of the High Court to annul a bankruptcy order.7 Nothing in this Article applies to a bankrupt who is a solicitor.”
(2)In Article 254 of the 1989 Order (discharge by order of the High Court)—
(a)the following shall be substituted for the heading of the Article—“Discharge where bankrupt is a solicitor”
(b)the following shall be substituted for paragraph (1)—“1 A bankrupt who is a solicitor is discharged from bankruptcy by an order of the High Court under this Article.1A An application for an order under this Article may be made at any time.”
(3)Schedule 4 (which makes transitional provision in relation to this Article)—
(a)shall have effect, and
(b)is without prejudice to the generality of Article 250.
Article 13Post-discharge restrictions#
(1)The following shall be inserted after Article 255 of the 1989 Order (bankruptcy: effect of discharge)—“255A Schedule 2A (bankruptcy restrictions order and bankruptcy restrictions undertaking) shall have effect.”
(2)The Schedule 2A set out in Schedule 5 to this Order shall be inserted after Schedule 2 to the 1989 Order.
(3)The amendments set out in Schedule 6 (which specify the effect of a bankruptcy restrictions order or undertaking) shall have effect.
Article 14Investigation by official receiver#
The following shall be substituted for Article 262 of the 1989 Order (official receiver's duty to investigate)—“262 1 The official receiver shall—a investigate the conduct and affairs of each bankrupt (including his conduct and affairs before the making of the bankruptcy order), andb make such report (if any) to the High Court as the official receiver thinks fit.2 Paragraph (1) shall not apply to a case in which the official receiver thinks an investigation under that paragraph unnecessary.3 Where a bankrupt makes an application for discharge under Article 254—a the official receiver shall make a report to the Court about such matters as may be prescribed, andb the Court shall consider the report before determining the application.4 A report by the official receiver under this Article shall in any proceedings be prima facie evidence of the facts stated in it.”
Article 15Income payments order#
(1)Article 283 of the 1989 Order (income payments order) shall be amended as follows.
(2)In paragraph (1) omit “, on the application of the trustee,”.
(3)After paragraph (1) insert—“1A An income payments order may be made only on an application instituted—a by the trustee, andb before the discharge of the bankrupt.”
(4)For paragraph (6) substitute—“6 An income payments order shall specify the period during which it is to have effect; and that period—a may end after the discharge of the bankrupt, butb may not end after the period of 3 years beginning with the date on which the order is made.6A An income payments order may (subject to paragraph (6)(b)) be varied on the application of the trustee or the bankrupt (whether before or after discharge).6B Where the Court has made an income payments order in relation to a bankrupt who is a solicitor, nothing in paragraph (6) shall affect the continuance of a condition with respect to income specified in an order made under Article 254(2)(c).”
Article 16Income payments agreement#
The following shall be inserted after Article 283 of the 1989 Order (income payments order)—“283A 1 In this Article “income payments agreement” means a written agreement between a bankrupt and his trustee or between a bankrupt and the official receiver which provides—a that the bankrupt is to pay to the trustee or the official receiver an amount equal to a specified part or proportion of the bankrupt's income for a specified period, orb that a third person is to pay to the trustee or the official receiver a specified proportion of money due to the bankrupt by way of income for a specified period.2 A provision of an income payments agreement of a kind specified in paragraph (1)(a) or (b) may be enforced as if it were a provision of an income payments order.3 While an income payments agreement is in force the High Court may, on the application of the bankrupt, his trustee or the official receiver, discharge or vary an attachment of earnings order that is for the time being in force to secure payments by the bankrupt.4 The following provisions of Article 283 shall apply to an income payments agreement as they apply to an income payments order—a paragraph (5) (receipts to form part of estate), andb paragraphs (7) to (9) (meaning of income).5 An income payments agreement must specify the period during which it is to have effect; and that period—a may end after the discharge of the bankrupt, butb may not end after the period of 3 years beginning with the date on which the agreement is made.6 An income payments agreement may (subject to paragraph (5)(b)) be varied—a by written agreement between the parties, orb by the High Court on an application made by the bankrupt, the trustee or the official receiver.7 The High Court—a may not vary an income payments agreement so as to include provision of a kind which could not be included in an income payments order, andb shall grant an application to vary an income payments agreement if and to the extent that the Court thinks variation necessary to avoid the effect mentioned in Article 283(2).”
Article 17Bankrupt's home#
(1)In Chapter II of Part IX of the 1989 Order (protection of bankrupt's estate and investigation of his affairs) the following shall be inserted before Article 257 (restrictions on dispositions of property)—“256A 1 This Article applies where property comprised in the bankrupt's estate consists of an interest in a dwelling-house which at the date of the bankruptcy was the sole or principal residence of—a the bankrupt,b the bankrupt's spouse, orc a former spouse of the bankrupt.2 At the end of the period of 3 years beginning with the date of the bankruptcy the interest mentioned in paragraph (1) shall—a cease to be comprised in the bankrupt's estate, andb vest in the bankrupt (without conveyance, assignment or transfer).3 Paragraph (2) shall not apply if during the period mentioned in that paragraph—a the trustee realises the interest mentioned in paragraph (1),b the trustee applies for an order for sale in respect of the dwelling-house,c the trustee applies for an order for possession of the dwelling-house,d the trustee applies for an order under Article 286 in Chapter IV in respect of that interest, ore the trustee and the bankrupt agree that the bankrupt shall incur a specified liability to his estate (with or without the addition of interest from the date of the agreement) in consideration of which the interest mentioned in paragraph (1) shall cease to form part of the estate.4 Where an application of a kind described in paragraph (3)(b) to (d) is made during the period mentioned in paragraph (2) and is dismissed, unless the High Court orders otherwise the interest to which the application relates shall on the dismissal of the application—a cease to be comprised in the bankrupt's estate, andb vest in the bankrupt (without conveyance, assignment or transfer).5 If the bankrupt does not inform the trustee or the official receiver of his interest in a property before the end of the period of 3 months beginning with the date of the bankruptcy, the period of 3 years mentioned in paragraph (2)—a shall not begin with the date of the bankruptcy, butb shall begin with the date on which the trustee or official receiver becomes aware of the bankrupt's interest.6 The High Court may substitute for the period of 3 years mentioned in paragraph (2) a longer period—a in prescribed circumstances, andb in such other circumstances as the Court thinks appropriate.7 The rules may make provision for this Article to have effect with the substitution of a shorter period for the period of 3 years mentioned in paragraph (2) in specified circumstances (which may be described by reference to action to be taken by a trustee in bankruptcy).8 The rules may also, in particular, make provision—a requiring or enabling the trustee of a bankrupt's estate to give notice that this Article applies or does not apply;b about the effect of a notice under sub-paragraph (a);c requiring the trustee of a bankrupt's estate to make an application to the Land Registry or the Registry of Deeds.9 Rules under paragraph (8)(b) may, in particular—a disapply this Article;b enable the High Court to disapply this Article;c make provision in consequence of a disapplication of this Article;d enable the Court to make provision in consequence of a disapplication of this Article;e make provision (which may include provision conferring jurisdiction on a court or tribunal) about compensation.”
(2)Article 286 of the 1989 Order (charge on bankrupt's home) shall be amended as follows—
(a)in paragraph (2) for “, up to the value from time to time of the property secured,” substitute “ , up to the charged value from time to time, ”,
(b)after paragraph (2) insert—“2A In paragraph (2) “the charged value” means—a the amount specified in the charging order as the value of the bankrupt's interest in the property at the date of the order, plusb interest on that amount from the date of the charging order at the prescribed rate.2B In determining the value of an interest for the purposes of this Article the High Court shall disregard any matter which it is required to disregard by the rules.”
(c)at the end insert—“8 But an order under paragraph (6) may not vary a charged value.”
(3)The following shall be inserted after Article 286 of the 1989 Order—“286A 1 This Article applies where—a property comprised in the bankrupt's estate consists of an interest in a dwelling-house which at the date of the bankruptcy was the sole or principal residence of—i the bankrupt,ii the bankrupt's spouse, oriii a former spouse of the bankrupt, andb the trustee applies for an order for the sale of the property, for an order for possession of the property or for an order under Article 286 in respect of the property.2 The High Court shall dismiss the application if the value of the interest is below such amount as may for the time being be specified for the purposes of this paragraph by order under Article 362(1)(b).3 In determining the value of an interest for the purposes of this Article the High Court shall disregard any matter which it is required to disregard by the order which specifies the amount for the purposes of paragraph (2).”
(4)The following shall be inserted after Article 280(2)(a) of the 1989 Order (after-acquired property: exclusions)—“aa any property vesting in the bankrupt by virtue of Article 256A in Chapter II,”
(5)In Article 362(1)(b) of the 1989 Order (monetary limits in bankruptcy) after the entry for Article 247 there shall be inserted— “ Article 286A (value of property below which application for sale, possession or charge to be dismissed); ”.
(6)In paragraph (7)—
(a)“pre-commencement bankrupt” means an individual who is adjudged bankrupt before paragraph (1) comes into operation, and
(b)“the transitional period” is the period of 3 years beginning with the date on which paragraph (1) comes into operation.
(7)If a pre-commencement bankrupt's estate includes an interest in a dwelling-house which at the date of the bankruptcy was the sole or principal residence of him, his spouse or a former spouse of his, at the end of the transitional period that interest shall—
(a)cease to be comprised in the estate, and
(b)vest in the bankrupt (without conveyance, assignment or transfer).
(8)But paragraph (7) shall not apply if before or during the transitional period—
(a)any of the events mentioned in Article 256A(3) of the 1989 Order (inserted by paragraph (1) above) occurs in relation to the interest or the dwelling-house, or
(b)the trustee obtains any order of a court, or makes any agreement with the bankrupt, in respect of the interest or the dwelling-house.
(9)Paragraphs (4) to (9) of Article 256A of the 1989 Order shall have effect, with any necessary modifications, in relation to the provision made by paragraphs (6) to (8); in particular—
(a)a reference to the period mentioned in Article 256A(2) shall be construed as a reference to the transitional period; and
(b)in the application of Article 256A(5) a reference to the date of the bankruptcy shall be construed as a reference to the date on which paragraph (1) comes into operation.
(10)In Article 11 of the 1989 Order (meaning of “bankrupt's estate”), after paragraph (5) insert—“5A This Article has effect subject to Article 256A.”
Article 18Bankrupt's home: civil partnership#
(1)The 1989 Order shall be amended as follows.
(2)In Article 256A (as inserted by Article 17(1) of this Order), in paragraph (1)—
(a)in sub-paragraph (b), after “spouse” insert “ or civil partner ”, and
(b)in sub-paragraph (c), after “spouse” insert “ or former civil partner ”.
(3)In Article 286A (as inserted by Article 17(3) of this Order), in paragraph (1)—
(a)in sub-paragraph (a)(ii), after “spouse” insert “ or civil partner ”, and
(b)in sub-paragraph (a)(iii), after “spouse” insert “ or former civil partner ”.
(4)In Article 309 (rights of occupation, etc.)—
(a)in paragraph (4)(b) and (c), after “spouse or former spouse” insert “ or civil partner or former civil partner ”, and
(b)in the heading to the Article, after “spouse” insert “ or civil partner ”.
Article 19Powers of trustee in bankruptcy#
The following shall be inserted in Part I of Schedule 3 to the 1989 Order (powers of trustee in bankruptcy: powers exercisable only with sanction) after paragraph 2—“2A Power to bring legal proceedings under Article 312, 313 or 367.”
Article 20Repeal of certain bankruptcy offences#
The following Articles of the 1989 Order shall cease to have effect—
(a)Article 332 (offence of failure to keep proper accounting records), and
(b)Article 333 (offence of gambling and speculation).
Article 21Individual voluntary arrangement#
(1)Schedule 7 (which makes provision about individual voluntary arrangements) shall have effect.
(2)The Department may by order amend the 1989 Order so as to extend the provisions of Articles 237B to 237G (which are inserted by Schedule 7 and provide a fast-track procedure for making an individual voluntary arrangement) to some or all cases other than those specified in Article 237A as inserted by Schedule 7.
(3)An order under paragraph (2) shall be subject to affirmative resolution.
(4)An order under paragraph (2) may make—
(a)consequential provision (which may include provision amending the 1989 Order or another statutory provision);
(b)transitional provision.
Article 22Disqualification for office: the Assembly#
The following shall be substituted for Article 370 of the 1989 Order (Northern Ireland Assembly disqualification)—“370 1 If the High Court makes a bankruptcy restrictions order or interim order in respect of a member of the Assembly, the Court shall notify the presiding officer of the Assembly.2 If the Department accepts a bankruptcy restrictions undertaking made by a member of the Assembly, the Department shall notify the presiding officer of the Assembly.370A A statutory provision about insolvency applies in relation to a member of the Assembly irrespective of any privilege of the Assembly.”
Article 23Disqualification for office: district councils#
(1)The following shall be substituted for section 4(1)(b) of the Local Government Act (Northern Ireland) 1972 (c. 9) (disqualification for membership of district council: bankrupt)—“b is the subject of a bankruptcy restrictions order or interim order;”
(2)Section 5 of that Act (which amplifies the provision substituted by paragraph (1)) shall cease to have effect.
Article 24Disqualification for office: general#
(1)A Northern Ireland department may make, subject to affirmative resolution, an order under this Article in relation to a disqualification provision.
(2)A “disqualification provision” is a provision which disqualifies (whether permanently or temporarily and whether absolutely or conditionally) a bankrupt or a class of bankrupts from—
(a)being elected or appointed to an office or position,
(b)holding an office or position, or
(c)becoming or remaining a member of a body or group.
(4)An order under paragraph (1) may repeal or revoke the disqualification provision.
(5)An order under paragraph (1) may amend, or modify the effect of, the disqualification provision—
(a)so as to reduce the class of bankrupts to whom the disqualification provision applies;
(b)so as to extend the disqualification provision to some or all individuals who are subject to a bankruptcy restrictions regime;
(c)so that the disqualification provision applies only to some or all individuals who are subject to a bankruptcy restrictions regime;
(6)An order by virtue of paragraph (5)(d) may provide for a discretion to be subject to—
(a)the approval of a specified person or body;
(b)appeal to a specified person or body.
(7)An order by virtue of paragraph (5)(d) made by—
(a)the Department of Justice; or
(b)any other Northern Ireland department with the concurrence of the Department of Justice,
may provide for a discretion to be subject to appeal to a specified court or tribunal; but any such order may only be made after consultation with the Lord Chief Justice where the appeal is to a specified court.
(8)The Northern Ireland department making the order may specify itself for the purposes of paragraph (5)(d) or (6)(a) or (b).
(9)In this Article “bankrupt” means an individual—
(a)who has been adjudged bankrupt by the High Court in Northern Ireland or by a court in England and Wales,
(b)whose estate has been sequestrated by a court in Scotland, or
(c)who has made an agreement with creditors of his for a composition of debts, for a scheme of arrangement of affairs, for the grant of a trust deed or for some other kind of settlement or arrangement.
(10)In this Article “bankruptcy restrictions regime” means an order or undertaking—
(a)under Schedule 2A to the 1989 Order (bankruptcy restrictions orders),
(b)under Schedule 4A to the Insolvency Act 1986 (c. 45) (corresponding provision in England and Wales), or
(c)under any system operating in Scotland which appears to the Northern Ireland department making the order to be equivalent to the system operating under Schedule 2A of the 1989 Order.
(11)In this Article—
(12)An order under this Article—
(a)may make provision generally or for a specified purpose only,
(b)may make different provision for different purposes, and
(c)may make transitional, consequential or incidental provision.
• “body” includes, except in paragraph (2)(c), the Assembly, and• “provision” means any statutory provision—(a) which deals with a transferred matter within the meaning of the Northern Ireland Act 1998 (c. 47), and(b) which was passed or made before the day appointed for the coming into operation of this Article.
Article 25Minor and consequential amendments relating to individual insolvency#
Schedule 8 (minor and consequential amendments relating to individual insolvency) shall have effect.
Money
Article 26Fees#
(1)The following shall be inserted after Article 361 of the 1989 Order (fees orders)—“361A 1 The Department—a may, with the concurrence of the Department of Finance and Personnel, by order subject to negative resolution require a body to pay a fee in connection with the grant or maintenance of recognition of the body under Article 350, andb may refuse recognition, or revoke an order of recognition under Article 350(1) by a further order, where a fee is not paid.2 The Department—a may, with the concurrence of the Department of Finance and Personnel, by order subject to negative resolution require a person to pay a fee in connection with the grant or maintenance of authorisation of the person under Article 352, andb may disregard an application or withdraw an authorisation where a fee is not paid.3 The Department may by order subject to negative resolution require the payment of fees in respect of—a the operation of the Insolvency Account;b payments into and out of that Account.4 The Department of Finance and Personnel may direct by whom and in what manner the fees are to be collected and accounted for.5 Paragraphs (3) and (5) of Article 361 apply to fees under this Article as they apply to fees under that Article.6 Nothing in this Article prejudices the provision contained in Article 361.”
(2)An order made by virtue of paragraph (1) may relate to the maintenance of recognition or authorisation granted before this Article comes into operation.
(3)At the end of Article 351 of the 1989 Order (authorisation of insolvency practitioner) there shall be added—“9 Paragraph (3)(c) shall not have effect in respect of an application made to the Department (but this paragraph is without prejudice to Article 361A).”
Article 27Insolvency Account: interest#
(1)The following shall be inserted after paragraph 16 of Schedule 5 to the 1989 Order (company insolvency rules: money)—“16A Provision enabling the Department to set the rate of interest paid on sums which have been paid into the Insolvency Account.”
(2)The following shall be inserted after paragraph 19 of Schedule 6 to the 1989 Order (individual insolvency rules: money)—“19A Provision enabling the Department to set the rate of interest paid on sums which have been paid into the Insolvency Account.”
Article 28Insolvency Account: adjustment of balances#
The following shall be inserted after Article 358 of the 1989 Order (Insolvency Account)—“358A 1 The Department of Finance and Personnel may direct the payment out of the Consolidated Fund of sums into the Insolvency Account.2 The Department of Finance and Personnel shall certify to the Assembly the reason for any payment under paragraph (1).3 The Department may pay sums out of the Insolvency Account into the Consolidated Fund.”
Miscellaneous
Article 29Transitional or transitory provision and savings#
(1)The Department may by order make such transitional or transitory provisions and savings as it considers appropriate in connection with the coming into operation of any provision of this Order.
(2)An order under this Article may modify any statutory provision.
(3)An order under this Article shall be subject to negative resolution.
Article 30Power to make consequential amendments etc.#
(1)The Department may by order make such supplementary, incidental or consequential provision as it thinks appropriate—
(a)for the general purposes, or any particular purpose, of this Order; or
(b)in consequence of any provision made by or under this Order or for giving full effect to it.
(2)An order under this Article may—
(a)amend, repeal or modify any statutory provision (including this Order);
(b)make incidental, supplementary, consequential, transitional, transitory or saving provision.
(3)An order under this Article shall be subject to negative resolution.
(4)The power conferred by this Article is not restricted by any other provision of this Order.
Article 31Repeals#
Schedule 9 (which contains repeals) shall have effect.
Schedule 1 · Schedule B1 to the 1989 order
Schedule 2 · Administration: minor and consequential amendments
General
(1)In any instrument made before Article 3(1) to (3) comes into operation—
(a)a reference to the making of an administration order shall be treated as including a reference to the appointment of an administrator under paragraph 15 or 23 of Schedule B1 to the 1989 Order (inserted by Article 3(2)), and
(b)a reference to making an application for an administration order by petition shall be treated as including a reference to making an administration application under that Schedule, appointing an administrator under paragraph 15 or 23 of that Schedule or giving notice under paragraph 16 or 27 of that Schedule.
...
(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (repealed)
(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (repealed)
(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (repealed)
The Criminal Justice Act (Northern Ireland) 1945 (c. 15)
(5)In section 35(4A) of the Criminal Justice Act (Northern Ireland) 1945 (powers of Crown Court or county courts in relation to fines and forfeited recognizances) for the words from “Article 22” to the end substitute “ Article 104 of, or paragraph 13 of Schedule B1 to, the Insolvency (Northern Ireland) Order 1989 (winding up or administration) ”.
The Transport Act (Northern Ireland) 1967 (c. 37)
(6)The Transport Act (Northern Ireland) 1967 shall be amended as follows.
(7)In section 7(1A)(b)(ii) (conditions of road service licences) after “liquidation” insert “ or enters administration ”.
(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Solicitors (Northern Ireland) Order 1976 (NI 12)
(10)In Schedule 1A to the Solicitors (Northern Ireland) Order 1976 (incorporated practices: supplementary provisions), in paragraph 3—
(a)omit “or” after sub-paragraph (a), and
(b)after sub-paragraph (b) insert—“or c for the appointment of an administrator under Schedule B1 to the Insolvency (Northern Ireland) Order 1989,”
The Magistrates' Courts (Northern Ireland) Order 1981 (NI 26)
(11)In Article 92A(1) of the Magistrates' Courts (Northern Ireland) Order 1981 (fines imposed on companies) for the words from “Article 22” to the end substitute “ Article 104 of, or paragraph 13 of Schedule B1 to, the Insolvency (Northern Ireland) Order 1989 (winding up or administration) ”.
The Companies (Northern Ireland) Order 1986 (NI 6)
(12). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(13). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(14). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(15). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(16). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(17). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The 1989 Order
(18)The 1989 Order shall be amended as follows.
(19)In Article 5(1) (interpretation), omit the definitions of “administrator” and “administration order”.
(20)
(1)Article 6 (meaning of “insolvency” and “go into liquidation”) shall be amended as follows.
(2)In paragraph (1) for “the making of an administration order or the appointment of an administrative receiver” substitute “ or the appointment of an administrator or administrative receiver ”.
(3)For paragraph (3) substitute—“3 The reference to a resolution for voluntary winding up in paragraph (2) includes a reference to a resolution which is deemed to occur by virtue of—a paragraph 84(5)(b) of Schedule B1, orb an order made following conversion of administration or a voluntary arrangement into winding up by virtue of Article 37 of the EC Regulation.”
(21)In Article 14 (proposal for company voluntary arrangement)—
(a)in paragraph (1) for “(other than one for which an administration order is in force, or which is being wound up)” substitute “ (other than one which is in administration or being wound up) ”, and
(b)in paragraph (3) for sub-paragraph (a) substitute—“a where the company is in administration, by the administrator,”
(22)In Article 18(3) (approval of company voluntary arrangement)—
(a)for “an administration order is in force” substitute “ is in administration ”, and
(b)for “discharge the administration order” substitute “ provide for the appointment of the administrator to cease to have effect ”.
(23)In Article 19(2)(c) (challenge of decision in relation to company voluntary arrangement) for “an administration order is in force” substitute “ is in administration ”.
(24)After Article 70(1) (voluntary winding up) insert—“1A Before a company passes a resolution for voluntary winding up it must give written notice of the resolution to the holder of any qualifying floating charge to which Article 59A applies.1B Where notice is given under paragraph (1A) a resolution for voluntary winding up may be passed only—a after the end of the period of 5 business days beginning with the day on which the notice was given, orb if the person to whom the notice was given has consented in writing to the passing of the resolution.”
(25). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(26)At the end of Article 107 (winding-up: avoidance of property disposition) (which becomes paragraph (1)) add—“2 This Article has no effect in respect of anything done by an administrator of a company while a winding-up petition is suspended under paragraph 41 of Schedule B1.”
(27)After Article 109(1) (commencement of winding up) insert—“1A Where the Court makes a winding-up order by virtue of paragraph 14(1)(e) of Schedule B1, the winding up is deemed to commence on the making of the order.”
(28)In Article 119 (appointment by High Court of liquidator following administration or voluntary arrangement) for paragraph (1) substitute—“1 Where a winding-up order is made immediately upon the appointment of an administrator ceasing to have effect, the High Court may appoint as liquidator of the company the person whose appointment as administrator has ceased to have effect.”
(29)In Article 176 (misfeasance of officers)—
(a)in paragraph (1)(b) omit “, administrator”,
(b)in paragraph (2) omit (in each place) “or administrator”, and
(c)in paragraph (4)—
(i)omit “or administrator”, and
(ii)for “that person” substitute “ he ”.
(30)Article 194(1) (administrator to be qualified insolvency practitioner) shall cease to have effect.
(31)In Article 195(1) and (2) (appointment to office of two or more persons) omit “administrator,”.
(32)In Article 196 (validity of office-holder's act) omit “administrator,”.
(33)In Article 197 (utility supplies)—
(a)for paragraph (1)(a) substitute—“a the company enters administration, or”
(b)for paragraph (4)(a) substitute—“a the date on which the company entered administration”
(34)For Article 198(1)(a) (getting in the company's property) substitute—“a the company enters administration, or”
(35)For Article 199(4)(a) (co-operation with office-holder) substitute—“a the date on which the company entered administration,”
(36)For Article 202(1)(a) (transactions at an undervalue) substitute—“a the company enters administration, or”
(37)
(1)Article 204 (relevant time for Articles 202 and 203) shall be amended as follows.
(2)For paragraph (1)(c) substitute—“c in either case, at a time between the making of an administration application in respect of the company and the making of an administration order on that application, andd in either case, at a time between the filing with the Court of a copy of notice of intention to appoint an administrator under paragraph 15 or 23 of Schedule B1 and the making of an appointment under that paragraph.”
(3)The word “and” after paragraph (1)(b) shall cease to have effect.
(4)For paragraph (3)(a), (aa) and (b) substitute—“a in a case where Article 202 or 203 applies by reason of an administrator of a company being appointed by administration order, the date on which the administration application is made,b in a case where Article 202 or 203 applies by reason of an administrator of a company being appointed under paragraph 15 or 23 of Schedule B1 following filing with the High Court of a copy of a notice of intention to appoint under that paragraph, the date on which the copy of the notice is filed,c in a case where Article 202 or 203 applies by reason of an administrator of a company being appointed otherwise than as mentioned in sub-paragraph (a) or (b), the date on which the appointment takes effect,d in a case where Article 202 or 203 applies by reason of a company going into liquidation either following conversion of administration into winding up by virtue of Article 37 of the EC Regulation or at the time when the appointment of an administrator ceases to have effect, the date on which the company entered administration (or, if relevant, the date on which the application for the administration order was made or a copy of the notice of intention to appoint was filed), ande in a case where Article 202 or 203 applies by reason of a company going into liquidation at any other time, the date of the commencement of the winding up.”
(38)
(1)Article 205 (order under Article 202 or 203) shall be amended as follows.
(2)For paragraph (3A) substitute—“3A Where Article 202 or 203 applies by reason of a company's entering administration, a person has notice of the relevant proceedings if he has notice that—a an administration application has been made,b an administration order has been made,c a copy of a notice of intention to appoint an administrator under paragraph 15 or 23 of Schedule B1 has been filed, ord notice of the appointment of an administrator has been filed under paragraph 19 or 30 of that Schedule.”
(3)For paragraph (3B) substitute—“3B Where Article 202 or 203 applies by reason of a company's going into liquidation at the time when the appointment of an administrator of the company ceases to have effect, a person has notice of the relevant proceedings if he has notice that—a an administration application has been made,b an administration order has been made,c a copy of a notice of intention to appoint an administrator under paragraph 15 or 23 of Schedule B1 has been filed,d notice of the appointment of an administrator has been filed under paragraph 19 or 30 of that Schedule, ore the company has gone into liquidation.”
(39)In Article 206(2) (extortionate credit transaction) for “the day on which the administration order was made or (as the case may be) the company went into liquidation” substitute “ the day on which the company entered administration or went into liquidation ”.
(40)
(1)Article 207 (avoidance of floating charge) shall be amended as follows.
(2)The word “or” after paragraph (3)(b) shall cease to have effect.
(3)For paragraph (3)(c) substitute—“c in either case, at a time between the making of an administration application in respect of the company and the making of an administration order on that application, ord in either case, at a time between the filing with the High Court of a copy of notice of intention to appoint an administrator under paragraph 15 or 23 of Schedule B1 and the making of an appointment under that paragraph.”
(4)For paragraph (5)(a) and (b) substitute—“a in a case where this Article applies by reason of an administrator of a company being appointed by administration order, the date on which the administration application is made,b in a case where this Article applies by reason of an administrator of a company being appointed under paragraph 15 or 23 of Schedule B1 following filing with the High Court of a copy of notice of intention to appoint under that paragraph, the date on which the copy of the notice is filed,c in a case where this Article applies by reason of an administrator of a company being appointed otherwise than as mentioned in sub-paragraph (a) or (b), the date on which the appointment takes effect, andd in a case where this Article applies by reason of a company going into liquidation, the date of the commencement of the winding up.”
(41)For Article 208(1)(a) (unenforceability of lien on records) substitute—“a the company enters administration, or”
(42)
(1)Article 347 (preferential debts: “the relevant date”) shall be amended as follows.
(2)In paragraph (2) for sub-paragraphs (a) and (b) substitute—“a if the company is in administration, the date on which it entered administration, andb if the company is not in administration, the date on which the voluntary arrangement takes effect.”
(3)In paragraph (3)—
(a)in sub-paragraphs (a), (aa) and (ab) for “the date of the making of the administration order” substitute “ the date on which the company entered administration ”,
(b)after sub-paragraph (b) insert—“ba if the case does not fall within sub-paragraph (a), (aa), (ab) or (b) and the company is being wound up following administration pursuant to paragraph 84 of Schedule B1, the relevant date is the date on which the company entered administration;”
(c)in sub-paragraph (c) for “sub-paragraph (a), (aa), (ab) or (b)” substitute “ sub-paragraph (a), (aa), (ab), (b) or (ba) ”.
(4)After paragraph (3) insert—“3A In relation to a company which is in administration (and to which no other provision of this Article applies) the relevant date is the date on which the company enters administration.”
(43)
(1)Article 366 (power to apply Parts II to VII to formerly authorised banks, &c.) shall be amended as follows.
(2)For paragraph (1) substitute—“1 The Department may, by order subject to negative resolution, after consultation with the Financial Services Authority provide that specified provisions in Parts II to VII shall apply with specified modifications in relation to any person who—a has a liability in respect of a deposit which he accepted in accordance with the Banking Act 1979 or 1987, butb does not have permission under Part IV of the Financial Services and Markets Act 2000 (regulated activities) to accept deposits.1A Paragraph (1)(b) shall be construed in accordance with—a section 22 of the Financial Services and Markets Act 2000 (classes of regulated activity and categories of investment),b any relevant order under that section, andc Schedule 2 to that Act (regulated activities).”
(3)Omit paragraph (2).
(44)In Article 368(1)(a) (application for order in relation to transaction defrauding creditor) for “in relation to which an administration order is in force” substitute “ is in administration ”.
(45). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(46)
(1)Schedule 5 (scope of insolvency rules) shall be amended as follows.
(2)At the end of paragraph 1 (which becomes sub-paragraph (1)) add—“2 Rules made by virtue of this paragraph about the consequence of failure to comply with practice or procedure may, in particular, include provision about the termination of administration.”
(3)In paragraph 10 (provision as to committees) for “Article 38, 59, 87 or 120” substitute “ Article 59, 87 or 120, or paragraph 58 of Schedule B1 ”.
(5)After paragraph 14A (inserted by sub-paragraph (4)) insert—“14B Provision which—a applies in relation to administration, with or without modifications, a provision of Parts V to VII and any of Articles 5 to 8 in so far as that Article relates to that provision, orb serves a purpose in relation to administration similar to a purpose that may be served by the rules in relation to winding up by virtue of a provision of this Schedule.”
(6)In paragraph 29 (general provision) for “Article 34, 57, 111, 121(2) or 199 of this Order” substitute “ Article 57, 111, 121(2) or 199 of, or paragraph 48 of Schedule B1 to, this Order ”.
(47)
(1)Schedule 7 (punishment of offences) shall be amended as follows.
(2)After the entries for Schedule A1 insert—“1 On indictment2 Summary2 years, or a fine or both.6 months, or the statutory maximum or both1 On indictment2 Summary2 years, or a fine or both.6 months, or the statutory maximum or both1 On indictment2 Summary2 years, or a fine or both.6 months, or the statutory maximum or both.1 On indictment2 Summary2 years, or a fine or both.6 months, or the statutory maximum or both.1 On indictment2 Summary2 years, or a fine or both.6 months, or the statutory maximum or both.1 On indictment2 SummaryA fine.The statutory maximum.”
(3)Omit the entries for the following provisions—
(a)Article 25(2),
(b)Article 28(8),
(c)Article 30(5),
(d)Article 33(3),
(e)Article 34(6),
(f)Article 35(3),
(g)Article 36(7), and
(h)Article 39(6).
The Companies (No. 2) (Northern Ireland) Order 1990 (NI 10)
(48)The Companies (No. 2) (Northern Ireland) Order 1990 shall be amended as follows.
(49)In Article 81 (modification of insolvency law)—
(a)in paragraph (3) for sub-paragraph (b) substitute—“b the application for an administration order or the presentation of a winding-up petition or the passing of a resolution for voluntary winding up,”
(b)after paragraph (3) insert—“3A In paragraph (3)(b) the reference to an application for an administration order shall be taken to include a reference to—a in a case where an administrator is appointed under paragraph 15 or 23 of Schedule B1 to the Insolvency Order (appointment by floating charge holder, company or directors) following filing with the Court of a copy of a notice of intention to appoint under that paragraph, the filing of the copy of the notice, andb in a case where an administrator is appointed under either of those paragraphs without a copy of a notice of intention to appoint having been filed with the Court, the appointment of the administrator.”
(50)In Article 84(4) (disapplication of provisions to default proceedings) for “Article 23(1)(c), 24(3), 106, 108, 110 or 258 of the Insolvency Order” substitute “ Article 106, 108, 110 or 258 of, or paragraph 43 or 44 (including paragraph 44(5) as applied by paragraph 45) of Schedule B1 to , the Insolvency Order ”.
(51)After Article 90(1) (application by exchange or clearing house about taking default proceedings) insert—“1A In paragraph (1) a reference to an administration order shall be taken to include a reference to the appointment of an administrator under—a paragraph 15 of Schedule B1 to the Insolvency Order (appointment by holder of qualifying floating charge), orb paragraph 23 of that Schedule (appointment by company or directors).”
(52)
(1)Article 97 (financial markets: administration) shall be amended as follows.
(2)For paragraph (1) substitute—“1 The following provisions of Schedule B1 to the Insolvency Order (administration) do not apply in relation to a market charge—a paragraph 44(2) and (3) (restriction on enforcement of security or repossession of goods) (including that provision as applied by paragraph 45 (interim moratorium)), andb paragraphs 71, 72 and 73 (power of administrator to deal with charged or hire-purchase property).1A Paragraph 42(2) of that Schedule (receiver to vacate office at request of administrator) does not apply to a receiver appointed under a market charge.”
(3)In paragraph (2) for “an administration order has been made or a petition for an administration order has been presented” substitute “ the occurrence of an event to which paragraph (2A) applies ”.
(4)After paragraph (2) insert—“2A This paragraph applies to—a making an administration application under paragraph 13 of Schedule B1 to the Insolvency Order,b appointing an administrator under paragraph 15 or 23 of that Schedule (appointment by floating charge holder, company or directors),c filing with the Court a copy of notice of intention to appoint an administrator under either of those paragraphs.”
The Pension Schemes (Northern Ireland) Act 1993 (c. 49)
(53)In section 119 of the Pension Schemes (Northern Ireland) Act 1993 (interpretation of Chapter II), in subsection (1)(c)(i)—
(a)omit “or an administration order”, and
(b)at the end add “ or the company enters administration ”.
The Employment Rights (Northern Ireland) Order 1996 (NI 16)
(54)
(1)The Employment Rights (Northern Ireland) Order 1996 shall be amended as follows.
(2)In Article 201(7) (application by employee for payment by Department)—
(a)in sub-paragraph (a) omit “or an administration order”, and
(b)after sub-paragraph (a) insert—“aa if the company is in administration for the purposes of the Insolvency (Northern Ireland) Order 1989,”
(3)In Article 228(3) (insolvency of employer)—
(a)in sub-paragraph (a) omit “or an administration order”, and
(b)after sub-paragraph (a) insert—“aa if the company is in administration for the purposes of the Insolvency (Northern Ireland) Order 1989,”
(4)Omit Article 234(4) (transfer to Department of rights and remedies: priority of preferential debts).
The Construction Contracts (Northern Ireland) Order 1997 (NI 1)
(55)In Article 12(1) of the Construction Contracts (Northern Ireland) Order 1997 (prohibition of conditional payment provisions), for sub-paragraph (a) substitute—“a when it enters administration within the meaning of Schedule B1 to the Insolvency (Northern Ireland) Order 1989,”
The Financial Services and Markets Act 2000 (c. 8)
(56)The Financial Services and Markets Act 2000 shall be amended as follows.
(57)
(1)Section 215 (provision of Financial Services Compensation Scheme in relation to insolvency) shall be amended as follows.
(2)In subsection (3) for “presents a petition under Article 22 of” substitute “ Schedule B1 to ”.
(3)In subsection (3A)—
(a)in paragraph (a) after “Act” insert “ or paragraph 15 or 23 of Schedule B1 to the 1989 Order ”, and
(b)in paragraph (b) for “either” substitute “ any ”.
(58)
(1)Section 359 (administration order) shall be amended as follows.
(2)In subsection (1) for “(or present a petition under Article 22 of the 1989 Order)” substitute “ or Schedule B1 to the 1989 Order ”.
(3)In subsection (3) for “(or Article 21(1)(a) of the 1989 Order)” substitute “ or paragraph 12(a) of Schedule B1 to the 1989 Order ”.
(4)In subsection (4) in the definition of “company”, for paragraph (b) substitute—“b in respect of which an administrator may be appointed under Schedule B1 to the 1989 Order,”
(59)In section 361(1) (administrator to report to Authority) for paragraph (b) substitute—“b in administration within the meaning of Schedule B1 to the 1989 Order.”
(60)
(1)Section 362 (Financial Services Authority's right to participate in proceedings) shall be amended as follows.
(2)In subsection (1) for “(or presents a petition under Article 22 of the 1989 Order)” substitute “ or Schedule B1 to the 1989 Order ”.
(3)In subsection (1A)—
(a)in paragraph (a) after “Act” insert “ or paragraph 15 or 23 of Schedule B1 to the 1989 Order ”, and
(b)in paragraph (b) for “either” substitute “ any ”.
(4)In subsection (2)(a) omit “or the petition”.
(5)In subsection (4) for “(or Article 39 of the 1989 Order)” substitute “ or paragraph 75 of Schedule B1 to the 1989 Order ”.
(6)In subsection (4A) for paragraph (b) substitute—“b paragraph 75(1)(a) and (b) of Schedule B1 to the 1989 Order shall have effect as if for the words “harm the interests of the applicant (whether alone or in common with some or all other members or creditors)” there were substituted the words “ harm the interests of some or all members or creditors ”.”
(7)In subsection (5)(b) for “(Article 38 of the 1989 Order)” substitute “ paragraph 58 of Schedule B1 to the 1989 Order ”.
(61)
(1)Section 362A shall be amended as follows.
(2)In subsection (2) after “Act” insert “ or paragraph 23 of Schedule B1 to the 1989 Order ”.
(3)In subsection (3)(b) for “that Schedule” substitute “ Schedule B1 to the 1986 Act or paragraph 28 of Schedule B1 to the 1989 Order ”.
(4)In subsection (4)(b) for “that Schedule” substitute “ Schedule B1 to the 1986 Act or paragraph 30 of Schedule B1 to the 1989 Order ”.
The Company Directors Disqualification (Northern Ireland) Order 2002 (NI 4)
(62)The Company Directors Disqualification (Northern Ireland) Order 2002 shall be amended as follows.
(63)In Article 9 (duty of Court to disqualify unfit director of insolvent company) for paragraph (2)(b) substitute—“b the company enters administration, or”
(64). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(65). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule 3 · Schedule 1A to the 1989 order
Schedule 4 · Duration of bankruptcy: transitional provisions
Introduction
(1)his Schedule applies to an individual who immediately before commencement—
(a)has been adjudged bankrupt, and
(b)has not been discharged from the bankruptcy.
(2)In this Schedule—• “commencement” means the date appointed under Article 1 for the commencement of Article 12, and• “pre-commencement bankrupt” means an individual to whom this Schedule applies.
Neither old law nor new law to apply
(3)Article 253 of the 1989 Order (bankruptcy: discharge) shall not apply to a pre-commencement bankrupt (whether in its pre-commencement or its post-commencement form).
General rule for discharge from pre-commencement bankruptcy
(4)
(1)A pre-commencement bankrupt is, subject to sub-paragraphs (2) and (3), discharged from bankruptcy at whichever is the earlier of—
(a)the end of the period of one year beginning with commencement, and
(b)the end of the relevant period applicable to the bankrupt under Article 253(1)(c) of the 1989 Order (duration of bankruptcy) as it had effect immediately before commencement.
(2)An order made under Article 253(3) of the 1989 Order before commencement—
(a)shall continue to have effect in respect of the pre-commencement bankrupt after commencement, and
(b)may be varied or revoked after commencement by an order under Article 253(3) as substituted by Article 12 of this Order.
(3)Article 253(3) to (5) of the 1989 Order as substituted by Article 12 of this Order shall have effect after commencement in relation to the period mentioned in sub-paragraph (1)(a) or (b).
Second-time bankruptcy
(5)
(1)This paragraph applies to a pre-commencement bankrupt who was an undischarged bankrupt at some time during the period of 15 years ending with the day before the date on which the pre-commencement bankruptcy commenced.
(2)The pre-commencement bankrupt shall not be discharged from bankruptcy in accordance with paragraph 4.
(3)An order made before commencement under paragraph (2)(b) or (c) of Article 254 of the 1989 Order (discharge by order of the High Court), shall continue to have effect after commencement (including any provision made by the Court by virtue of paragraph (3) of that Article).
(4)A pre-commencement bankrupt to whom this paragraph applies (and in respect of whom no order was in force under Article 254(2)(b) or (c) of the 1989 Order immediately before commencement) is discharged from bankruptcy—
(a)at the end of the period of 5 years beginning with commencement, or
(b)at such earlier time as the High Court may order on an application made to it under sub-paragraph (5).
(5)For the purposes of sub-paragraph (4)(b), the pre-commencement bankrupt may make an application to the Court at any time after the expiration of 5 years from the commencement of the bankruptcy.
(6)Article 253(3) to (5) of the 1989 Order as substituted by Article 12 of this Order shall have effect after commencement in relation to the period mentioned in sub-paragraph (4)(a).
(7)A bankruptcy annulled under Article 256 of the 1989 Order shall be ignored for the purpose of sub-paragraph (1).
Solicitors
(6)
(1)This paragraph applies to a pre-commencement bankrupt—
(a)who is a solicitor, and
(b)who is not an individual to whom paragraph 5 applies.
(2)The pre-commencement bankrupt shall not be discharged from bankruptcy in accordance with paragraph 4.
(3)An order made before commencement under paragraph (2)(b) or (c) of Article 254 of the 1989 Order shall continue to have effect after commencement (including any provision made by the Court by virtue of paragraph (3) of that Article).
(4)A pre-commencement bankrupt to whom this paragraph applies (and in respect of whom no order under Article 254(2)(b) or (c) of the 1989 Order was in force immediately before commencement) is discharged from bankruptcy by an order of the High Court on an application made to it under sub-paragraph (5).
(5)For the purposes of sub-paragraph (4), a pre-commencement bankrupt may make an application to the Court at any time.
(6)On an application under sub-paragraph (5), the Court may—
(a)refuse to discharge the bankrupt from bankruptcy,
(b)make an order discharging him absolutely, or
(c)make an order discharging him subject to such conditions with respect to any income which may subsequently become due to him, or with respect to property devolving upon him, or acquired by him, after his discharge, as may be specified in the order.
(7)The Court may provide for an order falling within paragraph (b) or (c) of sub-paragraph (6) to have immediate effect or to have its effect suspended for such period, or until the fulfilment of such conditions (including a condition requiring the Court to be satisfied as to any matter), as may be specified in the order.
Income payments order
(7)
(1)This paragraph applies where—
(a)a pre-commencement bankrupt is discharged by virtue of paragraph 4(1)(a), and
(b)an income payments order is in force in respect of him immediately before his discharge.
(2)If the income payments order specifies a date after which it is not to have effect, it shall continue in force until that date (and then lapse).
(3)But the High Court may on the application of the pre-commencement bankrupt—
(a)vary the income payments order;
(b)provide for the income payments order to cease to have effect before the date referred to in sub-paragraph (2).
Schedule 5 · Schedule 2A to the 1989 order
Schedule 6 · Effect of bankruptcy restrictions order and undertaking
Disqualification for acting as receiver or manager
(1)or Article 41 of the 1989 Order (receiver and manager: disqualification) substitute—“41 1 A person shall be guilty of an offence if he acts as receiver or manager of the property of a company on behalf of debenture holders while—a he is an undischarged bankrupt, orb a bankruptcy restrictions order is in force in respect of him.2 This Article does not apply to a receiver or manager acting under an appointment made by the High Court.”
Bankruptcy offences after discharge
(2)After Article 321(3) of the 1989 Order (bankruptcy offences: general: no liability after discharge) insert—“3A Paragraph (3) is without prejudice to any provision of this Chapter which applies to a person in respect of whom a bankruptcy restrictions order is in force.”
(3)At the end of Article 331 of the 1989 Order (obtaining credit and doing business) insert—“5 This Article applies to the bankrupt after discharge while a bankruptcy restrictions order is in force in respect of him.6 For the purposes of paragraph (1)(a) as it applies by virtue of paragraph (5), the relevant information about the status of the person in question is the information that a bankruptcy restrictions order is in force in respect of him.”
Disqualification for acting as insolvency practitioner
(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prohibition against involvement in company
(5)For Article 15(1) of the Company Directors Disqualification (Northern Ireland) Order 2002 (NI 4) (bankrupt) substitute—“1 It is an offence for a person to act as director of a company or directly or indirectly to take part in or be concerned in the promotion, formation or management of a company, without the leave of the High Court, at a time when—a he is an undischarged bankrupt, orb a bankruptcy restrictions order is in force in respect of him.”
Schedule 7 · Individual voluntary arrangement
Annulment of bankruptcy on making of voluntary arrangement
(1)For Article 235 of the 1989 Order (effect of voluntary arrangement: undischarged bankrupt) substitute—“235 1 This Article applies where—a the creditors' meeting summoned under Article 231 approves the proposed voluntary arrangement (with or without modifications), andb the debtor is an undischarged bankrupt.2 Where this Article applies the High Court shall annul the bankruptcy order on an application made—a by the bankrupt, orb where the bankrupt has not made an application within the prescribed period, by the official receiver.3 An application under paragraph (2) may not be made—a during the period specified in Article 236(3)(a) during which the decision of the creditors' meeting can be challenged by application under Article 236,b while an application under that Article is pending, orc while an appeal in respect of an application under that Article is pending or may be brought.4 Where this Article applies the Court may give such directions about the conduct of the bankruptcy and the administration of the bankrupt's estate as it thinks appropriate for facilitating the implementation of the approved voluntary arrangement.”
Fast-track for making voluntary arrangement
(2)After Article 237 of the 1989 Order (implementation of voluntary arrangement) insert—“237A Article 237B applies where an individual debtor intends to make a proposal to his creditors for a voluntary arrangement and—a the debtor is an undischarged bankrupt,b the official receiver is specified in the proposal as the nominee in relation to the voluntary arrangement, andc no interim order is applied for under Article 227.237B 1 The debtor may submit to the official receiver—a a document setting out the terms of the voluntary arrangement which the debtor is proposing, andb a statement of his affairs containing such particulars as may be prescribed of his creditors, debts, other liabilities and assets and such other information as may be prescribed.2 If the official receiver thinks that the voluntary arrangement proposed has a reasonable prospect of being approved and implemented, he may make arrangements for inviting creditors to decide whether to approve it.3 For the purposes of paragraph (2) a person is a “creditor” only if—a he is a creditor of the debtor in respect of a bankruptcy debt, andb the official receiver is aware of his claim and his address.4 Arrangements made under paragraph (2)—a must include the provision to each creditor of a copy of the proposed voluntary arrangement,b must include the provision to each creditor of information about the criteria by reference to which the official receiver will determine whether the creditors approve or reject the proposed voluntary arrangement, andc may not include an opportunity for modifications to the proposed voluntary arrangement to be suggested or made.5 Where a debtor submits documents to the official receiver under paragraph (1) no application under Article 227 for an interim order may be made in respect of the debtor until the official receiver has—a made arrangements as described in paragraph (2), orb informed the debtor that he does not intend to make arrangements (whether because he does not think the voluntary arrangement has a reasonable prospect of being approved and implemented or because he declines to act).237C As soon as is reasonably practicable after the implementation of arrangements under Article 237B(2) the official receiver shall report to the High Court whether the proposed voluntary arrangement has been approved or rejected.237D 1 This Article applies where the official receiver reports to the High Court under Article 237C that a proposed voluntary arrangement has been approved.2 The voluntary arrangement—a takes effect,b binds the debtor, andc binds every person who was entitled to participate in the arrangements made under Article 237B(2).3 The High Court shall annul the bankruptcy order in respect of the debtor on an application made by the official receiver.4 An application under paragraph (3) may not be made—a during the period specified in Article 237F(3) during which the voluntary arrangement can be challenged by application under Article 237F(2),b while an application under that Article is pending, orc while an appeal in respect of an application under that Article is pending or may be brought.5 The High Court may give such directions about the conduct of the bankruptcy and the administration of the bankrupt's estate as it thinks appropriate for facilitating the implementation of the approved voluntary arrangement.6 Chapter I of Part VIII does not apply to the voluntary arrangement.7 A reference in this Order or another statutory provision to a voluntary arrangement approved under this Part includes a reference to a voluntary arrangement which has effect by virtue of this Article.237E Article 237 shall apply to a voluntary arrangement which has effect by virtue of Article 237D(2) as it applies to a voluntary arrangement approved by a creditors' meeting.237F 1 The High Court may make an order revoking a voluntary arrangement which has effect by virtue of Article 237D(2) on the ground—a that it unfairly prejudices the interests of a creditor of the debtor, orb that a material irregularity occurred in relation to the arrangements made under Article 237B(2).2 An order under paragraph (1) may be made only on the application of—a the debtor,b a person who was entitled to participate in the arrangements made under Article 237B(2),c the trustee of the bankrupt's estate, ord the official receiver.3 An application under paragraph (2) may not be made after the end of the period of 28 days beginning with the date on which the official receiver makes his report to the High Court under Article 237C.4 But a creditor who was not made aware of the arrangements under Article 237B(2) at the time when they were made may make an application under paragraph (2) during the period of 28 days beginning with the date on which he becomes aware of the voluntary arrangement.237G 1 Article 236A shall have effect in relation to obtaining approval to a proposal for a voluntary arrangement under Article 237D.2 Article 236B shall have effect in relation to a voluntary arrangement which has effect by virtue of Article 237D(2) (for which purposes the words “by a creditors' meeting summoned under Article 231” shall be disregarded).”
Role of official receiver
(3)After Article 348A of the 1989 Order (authorisation of nominees and supervisors) insert—“348B 1 The official receiver is authorised to act as nominee or supervisor in relation to a voluntary arrangement approved under Chapter II of Part VIII provided that the debtor is an undischarged bankrupt when the arrangement is proposed.2 The Department may by order repeal the proviso in paragraph (1).3 An order under paragraph (2) shall be subject to negative resolution.”
Schedule 8 · Individual insolvency: minor and consequential amendments
(1)The 1989 Order shall be amended as follows.
(2)In Article 2(2) (general interpretation), in the definition of “the official receiver” for “or winding up” (twice) substitute “ , winding up or individual voluntary arrangement ”.
(3)In Article 238(1) (who may present a bankruptcy petition), omit sub-paragraph (d) and the word “or” before it.
(4)Article 249 (bankruptcy: summary administration) shall cease to have effect.
(5)Article 251 (petition in respect of a solicitor) shall cease to have effect.
(6)In Article 256 (annulment of bankruptcy)—
(a)omit paragraph (3) (annulment of bankruptcy order made in respect of a solicitor),
(b) in paragraph (4) (effect of annulment) after “Article 235” insert “ or 237D ”, and
(c)omit paragraph (5) (previous bankruptcy: disregard of annulled bankruptcy).
(7)For Article 264(4) (co-operation with official receiver) substitute—“4 The bankrupt shall give the official receiver such inventory of his estate and such other information, and shall attend on the official receiver at such times, as the official receiver may reasonably require—a for a purpose of this Chapter, orb in connection with the making of a bankruptcy restrictions order.”
(8)In Article 265(1)(a) (trustee in bankruptcy: power to appoint) omit the words “except at a time when a certificate for the summary administration of the bankrupt's estate is in force,”.
(9)In Article 266(1) (trustee in bankruptcy: meeting to appoint) omit the words “and no certificate for the summary administration of the bankrupt's estate has been issued,”.
(10)In Article 267(1) (power of creditors to requisition meeting) omit the words—“and b a certificate for the summary administration of the estate is not for the time being in force,”
(11)In Article 270 (trustee: special cases)—
(a)omit paragraphs (1) and (2), and
(b)in paragraph (3) omit the words “but no certificate for the summary administration of the estate is issued”.
(12)Omit Article 271(2) (removal of trustee: summary administration).
(13)In Article 273 (trustee: vacancy)—
(a)omit paragraph (5), and
(b)in paragraphs (6) and (7) omit the words “or (5)”.
(14)In Article 325(5) (concealment of property) after “the official receiver” insert “ , the trustee ”.
(15)At the end of Article 326 (concealment and falsification of records) add—“5 In their application to a trading record paragraphs (2)(d) and (3)(b) shall have effect as if the reference to 12 months were a reference to two years.6 In paragraph (5) “trading record” means a book, document or record which shows or explains the transactions or financial position of a person's business, including—a a periodic record of cash paid and received,b a statement of periodic stock-taking, andc except in the case of goods sold by way of retail trade, a record of goods sold and purchased which identifies the buyer and seller or enables them to be identified.”
(16)
(1)Schedule 6 (scope of insolvency rules) shall be amended as follows.
(2)After paragraph 6 (deeds of arrangement and voluntary arrangements) insert—“6A Provision about the official receiver acting as nominee or supervisor in relation to a voluntary arrangement under Part VIII, including—a provision requiring the official receiver to act in specified circumstances;b provision about remuneration;c provision prescribing terms or conditions to be treated as forming part of a voluntary arrangement in relation to which the official receiver acts as nominee or supervisor;d provision enabling those terms or conditions to be varied or excluded, in specified circumstances or subject to specified conditions, by express provision in an arrangement.”
(3)After paragraph 27 (records) insert—“27A Provision about bankruptcy restrictions orders, interim orders and undertakings, including—a provision about evidence;b provision enabling the amalgamation of the register mentioned in paragraph 12 of Schedule 2A with another register;c provision enabling inspection of that register by the public.”
(17)In Schedule 7 (punishment of offences)—
(a)in the entry for Article 41(1) omit “Undischarged”, and
(b)omit the entries for Articles 332(1) and 333(1).
Schedule 9 · Repeals
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