Insolvency (Amendment) Act (Northern Ireland) 2026

(10A) (1) The office-holder in respect of a partnership which is insolvent must prepare a report (a “conduct report”) about the conduct of each person who was an officer of the partnership— (a) on the insolvency date, or (b) at any time during the period of 3 years ending with that date. (2) For the purposes of this Article a partnership is insolvent if— (a) the partnership is in liquidation and at the time it went into liquidation its assets were insufficient for the payment of its debts and other liabilities and the expenses of the winding up, or (b) the partnership enters administration, and paragraph (1E) of Article 9 applies for the purposes of this Article as it applies for the purposes of Article 9(1). (3) A conduct report must, in relation to each person, describe any conduct of the person which may assist the Department in deciding whether to exercise the power under Article 10(1) or (3) in relation to the person. (4) The office-holder must send the conduct report to the Department before the end of— (a) the period of 3 months beginning with the insolvency date, or (b) such other longer period as the Department considers appropriate in the particular circumstances. (5) If new information comes to the attention of an office-holder, the office-holder must send that information to the Department as soon as reasonably practicable. (6) “New information” is information which an office-holder considers should have been included in a conduct report prepared in relation to the partnership, or would have been so included had it been available before the report was sent. (7) If there is more than one office-holder in respect of a partnership at any particular time (because the partnership is insolvent by virtue of falling within both sub-paragraphs of paragraph (2) at that time), paragraph (1) applies only to the first of the office-holders to be appointed. (9) The “office-holder” in respect of a partnership which is insolvent is— (a) in the case of a partnership being wound up by the High Court, the official receiver; (b) in the case of a partnership in administration, the administrator. (10) The “insolvency date”— (a) in the case of a partnership being wound up by the High Court, means the date on which the Court makes the winding-up order (see Article 105 of the Insolvency (Northern Ireland) Order 1989); (b) in the case of a partnership which has entered administration, means the date the partnership did so.

88

Omit modified Article 11.

89

After modified Article 10A (substituted by paragraph 87 above) insert—

(11A) (1) The High Court may make a disqualification order against a person (“P”) if, on an application under Article 11B, it is satisfied— (a) either— (i) that a disqualification order under Article 9 has been made against a person who is or has been an officer of a partnership, or (ii) that the Department has accepted a disqualification undertaking from such a person under Article 10(3), and (b) that P exercised the requisite amount of influence over the person. That person is referred to in this Article as “the main transgressor”. (2) For the purposes of this Article, P exercised the requisite amount of influence over the main transgressor if any of the conduct— (a) for which the main transgressor is subject to the order made under Article 9, or (b) in relation to which the undertaking was accepted from the main transgressor under Article 10(3), was the result of the main transgressor acting in accordance with P’s directions or instructions. (3) But P does not exercise the requisite amount of influence over the main transgressor by reason only that the main transgressor acts on advice given by P in a professional capacity. (4) Under this Article the minimum period of disqualification is 2 years and the maximum period is 15 years. (11B) (1) If it appears to the Department that it is expedient in the public interest that a disqualification order should be made against a person under Article 11A, the Department may— (a) make an application to the court for such an order, or (b) in a case where an application for an order under Article 9 against the main transgressor has been made by the official receiver, direct the official receiver to make such an application. (2) Except with the leave of the High Court, an application for a disqualification order under Article 11A must not be made after the end of the period of 3 years beginning with the day on which the partnership in question became insolvent (within the meaning given by paragraphs (2) and (4) of Article 9A). (3) Paragraph (5) of Article 10 applies for the purposes of this Article as it applies for the purposes of that Article. (11C) (1) If it appears to the Department that it is expedient in the public interest to do so, the Department may accept a disqualification undertaking from a person (“P”) if— (a) any of the following is the case— (i) a disqualification order under Article 9 has been made against a person who is or has been an officer of a partnership, (ii) the Department has accepted a disqualification undertaking from such a person under Article 10(3), or (iii) it appears to the Department that such an undertaking could be accepted from such a person (if one were offered), and (b) it appears to the Department that P exercised the requisite amount of influence over the person. That person is referred to in this Article as “the main transgressor”. (2) For the purposes of this Article, P exercised the requisite amount of influence over the main transgressor if any of the conduct— (a) for which the main transgressor is subject to the disqualification order made under Article 9, (b) in relation to which the disqualification undertaking was accepted from the main transgressor under Article 10(3), or (c) which led the Department to the conclusion set out in paragraph (1)(a)(iii), was the result of the main transgressor acting in accordance with P’s directions or instructions. (3) But P does not exercise the requisite amount of influence over the main transgressor by reason only that the main transgressor acts on advice given by P in a professional capacity. (4) Paragraph (5) of Article 10 applies for the purposes of this Article as it applies for the purposes of that Article. (12) (1) The High Court may, on the application of a person who is subject to a disqualification undertaking— (a) reduce the period for which the undertaking is to be in force, or (b) provide for it to cease to be in force. (2) On the hearing of an application under paragraph (1), the Department must appear and call the attention of the Court to any matters which seem to the Department to be relevant, and may give evidence or call witnesses.

90

Omit modified Article 13.

91

After modified Article 12 (inserted by paragraph 89 above) insert—

(14) (1) Where the High Court makes a declaration under Article 177 or 178 of the Insolvency (Northern Ireland) Order 1989 that a person is liable to make a contribution to a partnership’s assets, then, whether or not an application for such an order is made by any person, the Court may, if it thinks fit, also make a disqualification order against the person to whom the declaration relates. (2) The maximum period of disqualification under this Article is 15 years. (3) In this Article “partnership” includes overseas partnership within the meaning given by Article 9A(1). (17A) (1) This Article applies where the High Court must determine— (a) whether a person’s conduct as an officer of a partnership (either taken alone or taken together with that person’s conduct as an officer of one or more relevant entities or relevant overseas entities) makes the person unfit to be concerned in the management of a company; (b) where the court is required to make an order under Article 9, what the period of disqualification should be. (2) This Article also applies where the Department must determine— (a) whether a person’s conduct as an officer of a partnership (either taken alone or taken together with that person’s conduct as an officer of one or more relevant entities or relevant overseas entities) makes the person unfit to be concerned in the management of a company; (b) whether to exercise any discretion the Department has to accept a disqualification undertaking under Article 10. (3) In making any such determination in relation to a person, the High Court or the Department must have regard in particular to the matters set out in paragraphs 1 to 7 of Schedule 1. (4) Article 9(1B) to (1E) and Article 9A(1) apply for the purposes of this Article as they apply for the purposes of Article 9(1).

92

After modified Article 19 insert—

(19A) (1) The High Court may make a compensation order against a person on the application of the Department if the Court is satisfied that the conditions mentioned in paragraph (3) are met. (2) If it appears to the Department that the conditions mentioned in paragraph (3) are met in respect of a person who has offered to give the Department a compensation undertaking, the Department may accept the undertaking instead of applying for, or proceeding with an application for, a compensation order. (3) The conditions are that— (a) the person is subject to a disqualification order or disqualification undertaking under this Order, and (b) conduct for which the person is subject to the order or undertaking has caused loss to one or more creditors of an insolvent partnership of which the person has at any time been an officer. (4) An “insolvent partnership” is a partnership that is or has been insolvent; and a partnership becomes insolvent if— (a) the partnership goes into liquidation at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up, or (b) the partnership enters administration. (5) The Department may apply for a compensation order at any time before the end of the period of 2 years beginning with the date on which the disqualification order referred to in paragraph (3)(a) was made, or the disqualification undertaking referred to in that paragraph was accepted. (6) In the case of a person subject to a disqualification order under Article 11A, or a disqualification undertaking under Article 11C, the reference in paragraph (3)(b) to conduct is a reference to the conduct of the main transgressor in relation to which the person has exercised the requisite amount of influence. (19B) (1) A compensation order is an order requiring the person against whom it is made to pay an amount specified in the order— (a) to the Department for the benefit of— (i) a creditor or creditors specified in the order; (ii) a class or classes of creditor so specified; (b) as a contribution to the assets of a partnership so specified. (2) A compensation undertaking is an undertaking to pay an amount specified in the undertaking— (a) to the Department for the benefit of— (i) a creditor or creditors specified in the undertaking; (ii) a class or classes of creditor so specified; (b) as a contribution to the assets of a partnership so specified. (3) When specifying an amount the High Court (in the case of an order) and the Department (in the case of an undertaking) must in particular have regard to— (a) the amount of the loss caused; (b) the nature of the conduct mentioned in Article 19A(3)(b); (c) whether the person has made any other financial contribution in recompense for the conduct (whether under a statutory provision or otherwise). (4) An amount payable by virtue of paragraph (2) under a compensation undertaking is recoverable as if payable under a court order. (5) An amount payable under a compensation order or compensation undertaking is provable as a bankruptcy debt. (20) (1) A person intending to apply for the making of a disqualification order by the High Court must give not less than 10 days’ notice of that person’s intention to the person against whom the order is sought; and on the hearing of the application the last-mentioned person may appear and himself or herself give evidence or call witnesses. (3) On the hearing of an application made by a person falling within paragraph (4) the applicant must appear and call the attention of the High Court to any matters which seem to be relevant, and may give evidence or call witnesses. (4) The following fall within this paragraph— (a) the Department; (b) the official receiver.

93

After modified Article 21 insert—

(22) (1) Where— (a) a disqualification order is made, or (b) any action is taken by a court in consequence of which such an order or a disqualification undertaking is varied or ceases to be in force, or (c) leave is granted by the High Court for a person subject to such an order to do any thing which otherwise the order prohibits the person from doing, or (d) leave is granted by the High Court for a person subject to such an undertaking to do anything which otherwise the undertaking prohibits that person from doing, the clerk of the court must furnish to the Department and to the Secretary of State such particulars as may be prescribed and regulations may prescribe the time within which, and the form and manner in which, such particulars are to be furnished. (2) The Department must, from the particulars so furnished, continue to maintain the register of disqualification orders and of cases in which leave has been granted as mentioned in paragraph (1)(c). (3) The Department must include in the register such particulars as it considers appropriate of— (a) disqualification undertakings accepted by it under Article 10 or 11C; (c) cases in which leave has been granted as mentioned in paragraph (1)(d). (4) When an order or undertaking of which entry is made in the register ceases to be in force, the Department must delete the entry from the register and all particulars relating to it which have been furnished to the Department under this Article or any previous corresponding provision and, in the case of a disqualification undertaking, any other particulars the Department has included in the register. (5) The register must be open to inspection on payment of such fee as may be prescribed. (6) The Department may furnish to the Secretary of State such particulars as the Department considers appropriate of disqualification undertakings accepted by it under Article 10. (7) Regulations under this Article may extend the preceding provisions of this Article, to such extent and with such modifications as may be specified in the regulations, to disqualification orders made and disqualification undertakings accepted under the Company Directors Disqualification Act 1986 as applied by Article 16 of the Insolvent Partnerships Order 1994. (23) (1) In any proceedings (whether or not under this Order), any statement made in pursuance of a requirement imposed by or under Articles 9 to 10A, 11A to 11C, 12, 14 or 19 to 19C or Schedule 1 or by or under rules made for the purposes of this Order under the Insolvency (Northern Ireland) Order 1989, may be used in evidence against any person making or concurring in making the statement. (2) However, in criminal proceedings in which any such person is charged with an offence to which this paragraph applies— (a) no evidence relating to the statement may be adduced, and (b) no question relating to it may be asked, by or on behalf of the prosecution, unless evidence relating to it is adduced, or a question relating to it is asked, in the proceedings by or on behalf of that person. (3) Paragraph (2) applies to any offence other than— (a) an offence which is— (i) created by rules made for the purposes of this Order under the Insolvency (Northern Ireland) Order 1989, and (ii) designated for the purposes of this paragraph by such rules or by regulations; (b) an offence which is— (i) created by regulations made under any such rules, and (ii) designated for the purposes of this paragraph by such regulations; or (c) an offence under Article 10 of the Perjury (Northern Ireland) Order 1979 (false statements made otherwise than on oath). (4) Regulations under paragraph (3)(a)(ii) must after being made be laid before the Assembly. (23A) In proceedings against a person for an offence under Article 18 nothing in this Order is to be taken to require any person to disclose any information that he is entitled to refuse to disclose on grounds of legal professional privilege.

94

For modified Schedule 1 substitute—

Schedule 1 (1) The extent to which the person was responsible for the causes of any material contravention, by the partnership mentioned in Article 9(1)(a), a relevant entity or a relevant overseas entity, of any applicable legislative or other requirement. (2) The extent to which the person was responsible for the causes of the partnership mentioned in Article 9(1)(a) becoming insolvent. (3) Where applicable, the extent to which the person was responsible for the causes of a relevant entity or relevant overseas entity becoming insolvent. (4) The nature and extent of any loss or harm caused, or any potential loss or harm which could have been caused, by the person’s conduct as an officer of the partnership mentioned in Article 9(1)(a), a relevant entity or a relevant overseas entity. (5) Any misfeasance or breach of any fiduciary or other duty by the person in relation to the partnership mentioned in Article 9(1)(a) or a relevant entity or relevant overseas entity. (6) Any material breach of any legislative or other obligation of the person which applies as a result of being an officer of the partnership mentioned in Article 9(1)(a) or a relevant entity or relevant overseas entity. (7) The frequency of conduct of the person which falls within paragraphs 1 to 3, 5 or 6. (8) Article 9(1B) to (1E) and Article 9A(1) to (4) apply for the purposes of this Schedule as they apply for the purposes of Article 9(1).

Part 9 — Amendment to Schedule 10

95

• (1) Schedule 10 to the 1995 Order (subordinate legislation applied by Article 18 to that Order) is amended as follows.

• (2) After the entry referring to the Insolvency (Monetary Limits) Order (Northern Ireland) 1991 insert—

• The Preferential Payments (Monetary Limits) Order (Northern Ireland) 1991