LegalizeThe Insolvency (Amendment) Rules (Northern Ireland) 2006
Made: 9th February 2006
To be laid before Parliament
Coming into operation: 27th March 2006
The Lord Chancellor, in the exercise of the powers conferred on him by Article 359 of the Insolvency (Northern Ireland) Order 1989[^f00001], and section 19(3) of the Registration of Deeds Act 1970[^f00002], with the concurrence of the Department of Enterprise, Trade and Investment[^f00003], and after consulting the committee existing for that purpose under Article 360 of the said Order, and with the concurrence of the Department of Finance and Personnel hereby makes the following Rules:
Citation and commencement
1
These Rules may be cited as the Insolvency (Amendment) Rules (Northern Ireland) 2006 and shall come into operation on 27th March 2006.
Interpretation
2
- (1) In these Rules—
- “the commencement date” means the date referred to in Rule 1 of these Rules;
- references to “the principal Rules” are to the Insolvency Rules (Northern Ireland) 1991[^f00004] and a reference to a rule, Schedule or form by number alone means the rule, Schedule or form so numbered in the principal Rules;
- “the Order” means the Insolvency (Northern Ireland) Order 1989.
- (2) These Rules shall be construed as one with the principal Rules.
- (3) A reference to a “pre commencement bankruptcy” is a reference to a bankruptcy where the bankruptcy order was made before the commencement date and the bankrupt does not receive his discharge before that date.
Amendments to Rule 0.2
3
- (1) In Rule 0.2 (interpretation) in paragraph (a) of the definition of “appropriate fee” after the words in brackets there shall be inserted “or Rule 6.190B(6) or Rule 6.190C(6) (payor under income payments agreement entitled to clerical etc costs)”.
- (2) In the definition of “file in court” after the words “file in court” there shall be inserted “and file with the court”.
- (3) After the definition of “prescribed order of priority” there shall be inserted the following definition—
- “prescribed part” has the same meaning as it does in Article 150A(2)(a)
Amendments to Part 1 of the principal Rules
4
Part 1 of the principal Rules shall have effect subject to the amendments set out in Part 1 of Schedule 1 to these Rules.
Amendments to Part 2 of the principal Rules
5
- (1) Subject to paragraphs (2), (3) and (4), for Part 2 of the principal Rules there shall be substituted the provisions set out in Part 2 of Schedule 1 to these Rules.
- (2) The provisions of Part 2 of Schedule 1 to these Rules shall not apply and Part 2 of the principal Rules as it stood before the coming into operation of these Rules shall continue to apply, where a petition for an administration order has been presented to the court before the commencement date.
- (3) The former Rules shall continue to apply (with or without modification made by or under any statutory provision) where a provision made by or under any statutory provision preserves the continuing operation (with or without modification) after the commencement date of old Part III of the Order and in such a case the provisions of Part 2 of Schedule 1 to these Rules shall not apply.
- (4) In paragraph (3) “the former Rules” means the Insolvency Rules (Northern Ireland) 1991 without the amendments made by these Rules and “old Part III” means Part III of the Order without the amendments made by the Insolvency (Northern Ireland) Order 2005[^f00005].
Amendments to Part 3 of the principal Rules
6
Part 3 of the principal Rules shall have effect subject to the amendments set out in Part 3 of Schedule 1 to these Rules.
Amendments to Part 4 of the principal Rules
7
- (1) Subject to paragraphs (2) to (5), Part 4 of the principal Rules shall have effect subject to the amendments set out in Part 4 of Schedule 1 to these Rules.
- (2) In any case where before the commencement date a winding-up order is made or a resolution for the winding up of a company is passed and the liquidator is entitled to remuneration by virtue of Rule 4.134(6), Rule 4.135(1) or Rule 4.156(4), the liquidator shall continue to be entitled to remuneration on the basis that—
- (a) the amendments made to the principal Rules by these Rules do not apply; and
- (b) the amendments made to the Insolvency Regulations (Northern Ireland) 1996[^f00006] by the Insolvency (Amendment) Regulations (Northern Ireland) 2006[^f00007] had not been made.
- (3) Paragraph 26 in Part 4 of Schedule 1 to these Rules shall not apply and Rule 4.096 of the principal Rules as it stood prior to the coming into operation of these Rules shall continue to apply, where a company has gone into liquidation before the commencement date.
- (4) Paragraph 27(a) in Part 4 of Schedule 1 to these Rules shall not apply and paragraph (1) of Rule 4.097 of the principal Rules as it stood prior to the coming into operation of these Rules shall continue to apply where a company has gone into liquidation before the commencement date.
- (5) Paragraphs 28, 29 and 30 in Part 4 of Schedule 1 to these Rules shall not apply and Rules 4.098, 4.099 and 4.100 of the principal Rules as they stood prior to this coming into operation of these Rules shall continue to apply where a company has gone into liquidation before the commencement date.
Amendments to Part 5 of the principal Rules
8
Part 5 of the principal Rules shall have effect subject to the amendments set out in Part 5 of Schedule 1 to these Rules.
Amendments to Part 6 of the principal Rules
9
- (1) Subject to paragraphs (2) to (5), Part 6 of the principal Rules shall have effect subject to the amendments set out in Part 6 of Schedule 1 to these Rules.
- (2) Rule 6.048 of the principal Rules shall continue to have effect and the revocation of Rule 6.048 by paragraph 58 of Part 6 of Schedule 1 to these Rules shall not have effect in relation to a pre-commencement bankruptcy where a certificate of summary administration has been issued under Article 249.
- (3) In any case where before the commencement date a bankruptcy order is made and the trustee is entitled to remuneration by virtue of Rule 6.135(6) or Rule 6.136(1) the trustee shall continue to be entitled to remuneration on the basis that—
- (a) the amendments made to the principal Rules by these Rules do not apply; and
- (b) the amendments made to the Insolvency Regulations (Northern Ireland) 1996 by the Insolvency (Amendment) Regulations (Northern Ireland) 2006 had not been made.
- (4) In relation to a pre-commencement bankruptcy—
- (a) Rule 6.210 shall continue to have effect except that—
- (i) in the heading to that rule the words “or 256(3)(a)” shall be omitted;
- (ii) in the body of that rule the words “or 256(3)” shall be omitted.
- (b) Rules 6.211 and 6.212 of the principal Rules shall continue to have effect without the amendments made by paragraphs 81 and 82 of Part 6 of Schedule 1 to these Rules;
- (c) Rule 6.212A as inserted by paragraph 83 of Part 6 of Schedule 1 to these Rules shall not apply.
- (5) Rules 6.213 and 6.214 as set out in paragraphs 84 and 85 of Part 6 of Schedule 1 to these Rules shall have effect in relation to pre-commencement bankruptcies in the same way as they apply to post-commencement bankruptcies.
New Part 6A of the principal Rules
10
After Rule 6.244 of the principal Rules there shall be inserted the provisions set out in Part 7 of Schedule 1 to these Rules.
Amendments to Part 7 of the principal Rules
11
Part 7 of the principal Rules shall have effect subject to the amendments set out in Part 8 of Schedule 1 to these Rules.
Amendments to Part 11 of the principal Rules
12
- (1) Subject to paragraph (2), Part 11 of the principal Rules shall have effect subject to the amendments set out in Part 9 of Schedule 1 to these Rules.
- (2) The provisions of Part 9 of Schedule 1 to these Rules shall not apply and Part 11 of the principal Rules as it stood before the coming into operation of these Rules shall continue to apply, where a company has gone into liquidation, or a bankruptcy order has been made, before the commencement date.
Amendments to Part 12 of the principal Rules
13
- (1) Subject to paragraph (2), Part 12 of the principal Rules shall have effect subject to the amendments set out in Part 10 of Schedule 1 to these Rules.
- (2) Paragraph 104(b) in Part 10 of Schedule 1 to these Rules shall not apply and paragraph (2) (a) of Rule 12.03 of the principal Rules as they stood prior to the coming into operation of these Rules shall continue to apply where a bankruptcy order has been made before the commencement date.
Amendments to Schedule 2 to the principal Rules
14
- (1) In the index to forms in Schedule 2 to the principal Rules—
- (a) for the entries (including the form number) set out under the heading “Part 2: ADMINISTRATION PROCEDURE” there shall be substituted the following entries—
| 2.01B | Administration application |
|---|---|
| 2.02B | Statement of proposed administrator |
| 2.03B | Affidavit of service of administration application |
| 2.04B | Administration order |
| 2.05B | Notice of intention to appoint an administrator by holder of qualifying floating charge |
| 2.06B | Notice of appointment of an administrator by holder of qualifying floating charge |
| 2.07B | Notice of appointment of an administrator by holder of qualifying floating charge (for use in pursuance of Rule 2.020 of the Insolvency Rules (Northern Ireland) 1991) |
| 2.08B | Notice of intention to appoint an administrator by company or director(s) |
| 2.09B | Notice of appointment of an administrator by company or director(s) (where a notice of intention to appoint has been issued) |
| 2.10B | Notice of appointment of an administrator by company or director(s) (where a notice of intention to appoint has not been issued) |
| 2.11B | Notification of appointment of administrator (for newspaper and Belfast Gazette) |
| 2.12B | Notice of administrator’s appointment |
| 2.13B | Notice requiring submission of a statement of affairs |
| 2.14B | Statement of affairs — administration |
| 2.15B | Statement of affairs for company in administration — affidavit of concurrence |
| 2.16B | Notice of statement of affairs |
| 2.17B | Statement of administrator’s proposals |
| 2.18B | Notice of extension of time period |
| 2.19B | Notice to attend meeting of creditors |
| 2.20B | Notice of a meeting of creditors |
| 2.21B | Creditor’s request for a meeting |
| 2.22B | Statement of administrator’s revised proposals |
| 2.23B | Notice of result of meeting of creditors |
| 2.24B | Administrator’s progress report |
| 2.25B | Notice of conduct of business by correspondence |
| 2.26B | [Amended] Certificate of constitution of creditors' committee |
| 2.27B | Notice by administrator of a change in committee membership |
| 2.28B | Notice of order to deal with charged property |
| 2.29B | Affidavit of debt |
| 2.30B | Notice of automatic end of administration |
| 2.31B | Notice of extension of period of administration |
| 2.32B | Notice of end of administration |
| 2.33B | Notice of court order ending administration |
| 2.34B | Notice of move from administration to creditors' voluntary liquidation |
| 2.35B | Notice of move from administration to dissolution |
| 2.36B | Notice to registrar of companies in respect of date of dissolution |
| 2.37B | Notice of intention to resign as administrator |
| 2.38B | Notice of resignation by administrator |
| 2.39B | Notice of vacation of office by administrator |
| 2.40B | Notice of appointment of replacement/additional administrator |
- (b) for the entry relating to Form 4.12 there shall be substituted “Order for Winding Up by the Court following upon the cessation of the appointment of an administrator”;
- (c) omit the entry for Form 4.03;
- (d) after the entry for Form 4.16 there shall be inserted the following entry—
| 4.16A | Notice of appointment of provisional liquidator in winding up by the court |
|---|---|
- (e) after the entry for Form 5.5 there shall be inserted the following entries—
| 5.6 | Voting form in relation to a proposal for a voluntary arrangement under Article 237A of the Insolvency (Northern Ireland) Order 1989 |
|---|---|
| 5.7 | Order of annulment under Article 235 of the Insolvency (Northern Ireland) Order 1989 |
| 5.8 | Order of annulment under Article 237D of the Insolvency (Northern Ireland) Order 1989 |
- (f) omit the entry for Form 6.11;
- (g) after the entry for Form 6.83 there shall be inserted the following form numbers and titles—
| 6.84 | Variation of income payments agreement under Article 283A of the Insolvency (Northern Ireland) Order 1989 |
|---|---|
| 6.85 | Notice under Article 253(2) of the Insolvency (Northern Ireland) Order 1989 |
| 6.86 | Notice to interested parties of a dwelling-house falling within Article 256A of the Insolvency (Northern Ireland) Order 1989 |
| 6.87 | Certificate issued pursuant to Rule 6.229B(1) of the Insolvency Rules (Northern Ireland) 1991 |
- (h) after the entries relating to Part 9 there shall be inserted the following heading and entry—
(12.1) Notice to the Registrar in respect of order under Article 150A
- (2) Subject to paragraphs (3) and (4), in Schedule 2 to the principal Rules—
- (a) for Forms 2.01 to 2.24 there shall be substituted the Forms 2.01B to 2.40B as set out in Part A of Schedule 2 to these Rules;
- (b) the Forms set out in Part B of Schedule 2 to these Rules shall be inserted as Forms 4.16A, 5.6, 5.7, 5.8, 6.84, 6.85, 6.86, 6.87 and 12.1;
- (c) for Forms—
- (i) 3.02, 3.04, 4.06, 4.11, 4.12, 4.13, 4.14, 4.18, 4.19, 4.20, 4.26, 4.53, 4.69, 5.2, 6.01, 6.02, 6.03, 6.09, 6.27, 6.29, 6.31, 6.40, and
- (ii) 5.4, 6.33, 6.74, 6.75, 6.76, 6.80, 6.82 and 6.83
there shall be substituted the forms so numbered as set out in Part C of Schedule 2 to these Rules; and
- (d) Forms 4.03, 6.11 and 6.34 shall be omitted.
- (3) In any case to which paragraphs (2), (3) or (4) of Rule 5 of these Rules applies, paragraph (2)(a) and paragraph (2)(c)(i) (but only insofar as it relates to Form 4.12) of this Rule shall not apply and the forms prescribed for use by the principal Rules as they stood before the coming into operation of these Rules shall continue to be used.
- (4) In any case to which Rule 9(2) of these Rules applies, paragraph (2)(d) of this Rule shall not apply and the forms prescribed for use by the principal Rules as they stood before the coming into operation of these Rules shall continue to be used.
Amendments to Schedule 3 to the principal Rules
15
- (1) In Schedule 3 to the principal Rules—
- (a) for the entry in column 1 relating to “Rule 2.056(4)” there shall be substituted “Rule 2.048(6)”;
- (b) after that entry there shall be inserted the following entries—
Rule 2.112(3): Administrator failing to file a notice of automatic end of administration; summary; one-fifth of the statutory maximum; one-fiftieth of the statutory maximum
Rule 2.130(2): Administrator’s duties on vacating office; summary; one-fifth of the statutory maximum; one-fiftieth of the statutory maximum
- (2) The provisions of this Rule shall not apply and Schedule 3 to the principal Rules as it stood before the coming into operation of these Rules shall continue to apply in any case to which paragraphs (2), (4) or (5) of Rule 5 of these Rules applies.
SCHEDULE 1
PART 1 — AMENDMENTS TO PART 1 OF THE PRINCIPAL RULES
Amendments to Rule 1.01
1
In Rule 1.01—
- (a) in sub-paragraph (a)(i) of paragraph (2) for the words “an administration order (under Part III of the Order) in force in relation to it” there shall be substituted “the company in administration”; and
- (b) in sub-paragraph (b) of paragraph (2) for the words “an administration order is in force” there shall be substituted “the company is in administration”.
Amendments to Rule 1.03
2
- (1) After paragraph (2)(c) of Rule 1.03 there shall be inserted—
(ca) an estimate (to the best of the directors' knowledge and belief and subject to paragraph (4)) of— (i) the value of the prescribed part, should the company go into liquidation if the proposal for the voluntary arrangement is not accepted, whether or not Article 150A is to be disapplied; and (ii) the value of the company’s net property on the date that the estimate is made.
- (2) After paragraph (3) there shall be inserted—
(4) Nothing in paragraph (2)(ca) is to be taken as requiring the estimate referred to in that paragraph to include any information, the disclosure of which could seriously prejudice the commercial interests of the company. If such information is excluded from the calculation the estimate shall be accompanied by a statement to that effect.
Amendments to Rule 1.10
3
In Rule 1.10—
- (a) in paragraph (1)(a)—
- (i) for the words “subject to an administration order” there shall be substituted “in administration”;
- (ii) after the words “Rule 1.03” there shall be inserted “(subject to paragraph (3) of this Rule)”; and
- (b) after paragraph (2) there shall be inserted—
(3) The administrator or liquidator shall include, in place of the estimate required by Rule 1.03(2)(ca), a statement which contains— (a) to the best of the administrator or liquidator’s knowledge and belief— (i) an estimate of the value of the prescribed part (whether or not he proposes to make an application to court under Article 150A(5) or Article 150A(3) applies), and (ii) an estimate of the value of the company’s net property, and (b) whether, and, if so, why, the administrator or liquidator proposes to make an application to court under Article 150A(5). (4) Nothing in this Rule is to be taken as requiring any such estimate to include any information, the disclosure of which could seriously prejudice the commercial interests of the company. If such information is excluded from the calculation the estimate shall be accompanied by a statement to that effect.
Substitution of Rule 1.13
4
For Rule 1.13 there shall be substituted—
(1.13) (1) Subject to paragraphs (2) and (3), in fixing the venue for the creditors' meeting and the company meeting, the person summoning the meeting (“the convener”) shall have regard primarily to the convenience of the creditors. (2) Meetings shall in each case be summoned for commencement between 10.00 and 16.00 hours on a business day. (3) The meetings may be held on the same day or on different days. If held on the same day, the meetings shall be held in the same place, but in either case the creditors' meeting shall be fixed for a time in advance of the company meeting. (4) Where the meetings are not held on the same day, they shall be held within 7 days of each other. (5) With every notice summoning either meeting there shall be sent out forms of proxy. - [E.R. 1.13]
Amendments to Rule 1.17
5
In paragraph (2) of Rule 1.17 for the words “subject to an administration order” there shall be substituted “in administration” and for the words “of the administration order” there shall be substituted “when the company entered administration”.
Amendments to Rule 1.23
6
In Rule 1.23—
- (a) in paragraph (1)(b) for the words “subject to an administration order” there shall be substituted “in administration”;
- (b) in paragraph (2)—
- (i) for the words “subject to an administration order” there shall be substituted “in administration”; and
- (ii) in sub-paragraph (b) for the words “became subject to the administration order” there shall be substituted “entered administration”.
Amendment to Rule 1.29
7
After paragraph (3) of Rule 1.29 there shall be inserted—
(4) In the report under paragraph (2), the supervisor shall include a statement as to the amount paid, if any, to unsecured creditors by virtue of the application of Article 150A (prescribed part).
PART 2 — SUBSTITUTION OF PART 2 OF THE PRINCIPAL RULES
8
For Part 2 of the principal Rules there shall be substituted—
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