Insolvency Act 1985

Provision conferring power on the Secretary of State to make regulations with respect to so much of any matter that may be provided for in the rules as relates to the carrying out of the functions of the liquidator, administrator or administrative receiver of a company.

28

Provision conferring a discretion on the court.

29

Provision conferring power on the court to make orders for the purpose of securing compliance with obligations imposed by or under section 12(6), 39, 53, 66, 69(2) or 99 of this Act or section 482 of the 1985 Act.

30

Provision making non-compliance with any of the rules a criminal offence.

31

Provision making different provision for different cases or descriptions of cases, including different provision for different areas.

SCHEDULE 6

Disqualification etc.

1

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2

In section 301(1) (register of disqualification orders), for the words " sections 296 to 300" there shall be substituted the words " sections 296 to 299 ".

3

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4

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5

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6

• (1) For subsection (2) of section 630 (responsibility for company's fraudulent trading) there shall be substituted the following subsection—

(2) The court, on the application of the liquidator, may declare that any persons who were knowingly parties to the carrying on of the business in the manner above mentioned are to be liable to make such contributions (if any) to the company's assets as the court thinks proper.

• (2) In subsection (3) of that section for the words "the official receiver or the liquidator (as the case may be)" there shall be substituted the words " the liquidator ".

• (3) After subsection (5) of that section there shall be inserted the following subsection—

(5A) Where the court makes a declaration under subsection (2) above in relation to a person who is a creditor of the company, it may direct that the whole or any part of any debt owed by the company to that person and any interest thereon shall rank in priority after all other debts owed by the company and after any interest on those debts.

7

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Voluntary arrangements

8

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Administration orders

9

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10

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11

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12

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13

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14

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Receivers and managers (England and Wales)

15

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16

• (1) Section 492 (receivers and managers appointed out of court) shall be amended as follows.

• (2) For subsection (1) there shall be substituted the following subsection—

(1) A receiver or manager of the property of a company appointed under powers contained in an instrument, or the persons by whom or on whose behalf a receiver or manager has been so appointed, may apply to the court for directions in relation to any particular matter arising in connection with the performance of the functions of the receiver or manager.

• (3) In subsection (3), after the word "provides)" there shall be inserted the words " and on any contract of employment adopted by him in the performance of those functions ".

• (4) After that subsection there shall be inserted the following subsections—

(4) For the purposes of subsection (3)(a) the receiver or manager is not to be taken to have adopted a contract of employment by reason of anything done or omitted to be done within fourteen days after his appointment. (5) Where at any time a receiver or manager so appointed vacates office— (a) his remuneration and any expenses properly incurred by him; and (b) any indemnity to which he is entitled out of the assets of the company, shall be charged on and paid out of any property of the company which is in his custody or under his control at that time in priority to any charge or other security held by the person by or on whose behalf he was appointed.

17

• (1) Section 498 (receivership accounts to be delivered to the registrar) shall be amended as follows.

• (2) In subsection (1), for the words "Except where section 497 applies " there shall be substituted the words " Except in the case of an administrative receiver ".

• (3) In subsection (2), for the words " 6 months ", in the first place where they occur, there shall be substituted the words " 12 months ".

• (4) In subsection (3), for the words " 6 months", in both places where they occur, there shall be substituted the words " 12 or 6 months ".

Receivers (Scotland)

18

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19

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20

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21

• (1) Section 476(1) (distribution of monies) shall be amended as follows.

• (2) After the words " categories of persons " there shall be inserted the words " (which rights shall, except to the extent other-Wise provided in any instrument, have the following order of priority) ".

• (3) In paragraph (d), after the word "remuneration" there shall be inserted the words " and any indemnity to which the receiver is entitled out of the property of the company. "

22

• (1) Schedule 24 (punishment of offences) shall be amended as follows.

• (2) After the entry relating to section 470(3) there shall be inserted the following entry—

477(2e)	Failing to send to registrar of companies a certified copy of authorisation to dispose of certain property.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.

.

• (3) In the entry relating to section 481(7), for " 481(7)" there shall be substituted " 481(4) ".

• (4) For the entry relating to section 482(5) there shall be substituted the following entry—

482(6)	Failure to comply with obligation to submit statement of affairs to receiver.	1. On indictment.	A fine.
482(6)	Failure to comply with obligation to submit statement of affairs to receiver.	2. Summary.	The statutory maximum.	One-tenth of the statutory maximum.

.

Winding up

23

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24

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25

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26

In section 512(4) (jurisdiction in relation to winding up), for the words " in bankruptcy" there shall be substituted the words " for the purposes of Part III of the Insolvency Act 1985 ".

27

• (1) Section 518 (definition of inability to pay debts) shall be amended as follows.

• (2) In subsection (1)(a) after the word " demand " there shall be inserted the words " in the prescribed form ".

• (3) In subsection (1)(e), for the words from "(and. in determining " onwards there shall be substituted the words " as they fall due ".

• (4) After subsection (1) there shall be inserted the following subsection—

(1A) A company is also deemed unable to pay its debts if it is proved to the satisfaction of the court that the value of the company's assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities.

28

In section 519(1) (presentation of application for winding up), after the words " by the company " there shall be inserted the words " or the directors ".

29

In section 525(2) and (3) (restriction on proceedings against a company where winding-up order made or provisional liquidator appointed), after the words " against the company", in each place where they occur, there shall be inserted the words " or its property ".

30

For section 535 (liquidators in Scotland) there shall be substituted the following section—

(535) Where a winding-up order is made by the court in Scotland, a liquidator shall be appointed by the court at the time when the order is made.

31

• (1) Section 539 (powers of liquidator) shall be amended as follows.

• (2) In subsection (1), for the words " committee of inspection ", there shall be substituted the words " committee established under section 74 or 75 of the Insolvency Act 1985 ".

• (3) Paragraph (c) of subsection (1) (power to appoint solicitor) shall be omitted and after subsection (2) there shall be inserted the following subsection—

(2A) Where the liquidator (not being the official receiver), in exercise of the powers conferred on him by this Act- (a) disposes of any property of the company to a person who is connected with the company (within the meaning of Part II of the Insolvency Act 1985); or (b) employs a solicitor to assist him in the carrying out of his functions, he shall, if there is for the time being a committee established under section 74 or 75 of that Act, give notice to the committee of that exercise of his powers.

• (4) In subsection (4), for the words "committee of inspection" there shall be substituted the words " committee established under section 74 or 75 of the Insolvency Act 1985 ".

32

In section 552(3) (debts due from contributory), after the words " in full" there shall be inserted the words " (together with interest at the rate applicable under section 93 of the Insolvency Act 1985) ".

33

In section 562 (attendance at company meetings (Scotland)), for the words " committee of inspection " there shall be substituted the words " committee established under section 75 of the Insolvency Act 1985

34

In section 567(2) (delegation of powers to liquidator (England and Wales)), for the words " committee of inspection " there shall be substituted the words " committee established under section 74 of the Insolvency Act 1985 ".

35

In section 577 (statutory declaration that the company is able to pay its debts in full), in subsections (1) and (4) after the words " in full", and in subsection (5) after the word " debts ", there shall be inserted the words " (together with interest at the rate applicable under section 93 of the Insolvency Act 1985) ".

36

In section 584(1) (general company meeting at each year's end), for the words " section 586 " there shall be substituted the words " section 83(7) of the Insolvency Act 1985 ".

37

• (1) In subsection (1) of section 589 (appointment of liquidator), for the words " section 588 " there shall be substituted the words " section 85 of the Insolvency Act 1985 ".

• (2) For subsection (2) of that section there shall be substituted the following subsection—

(2) The liquidator shall be the person nominated by the creditors or, where no person has been so nominated, the person (if any) nominated by the company.

38

• (1) Section 590 (appointment of committee of inspection) shall be amended as follows.

• (2) For subsection (1) there shall be substituted the following subsection—

(1) The creditors at the meeting to be held under section 85 of the Insolvency Act 1985 or at any subsequent meeting may, if they think fit, appoint a committee of not more than 5 persons to exercise the functions conferred on it by or under this Act or Part U of that Act.

• (3) In subsection (3), for the words " committee of inspection " there shall be substituted the words " committee established under this section ".

• (4) In subsection (5), for the words " committees of inspection " there shall be substituted the words " such committees ".

39

In section 591(2) (remuneration of liquidator: cesser of director's powers), for the words " committee of inspection " there shall be substituted the words " committee established under section 590 ".

40

In section 593 (application of section 582 to creditors' voluntary winding up), for the words " committee of inspection " there shall be substituted the words " committee established under section 590 ".

41

• (1) In subsection (1) of section 598 (powers and duties of liquidator in voluntary winding up), for the words " committee of inspection " there shall be substituted the words " committee established under section 590 ".

• (2) After subsection (4) of that section there shall be inserted the following subsection—

(4A) Where the liquidator in exercise of the powers conferred on him by this Act disposes of any property of the company to a person who is connected with the company (within the meaning of Part IT of the Insolvency Act 1985), he shall, if there is for the time being a committee established under section 590 above, give notice to the committee of that exercise of his powers.

42

After subsection (1) of section 625 (transactions in fraud of creditors) there shall be inserted the following subsection—

(1A) A person shall not be guilty of an offence under this section— (a) by reason of conduct constituting an offence under subsection (1)(a) above which occurred more than five years before the commencement of the winding up ; or (b) if he proves that, at the time of the conduct constituting the offence, he had no intent to defraud the creditors of the company.

43

In section 626(1)(d) (failure to inform liquidator that false debt has been proved), for the words " for the period of a month to inform the liquidator of it" there shall be substituted the words " to inform the liquidator as soon as practicable ".

44

In section 632 (prosecution of delinquent officers and members of company), after subsection (2) there shall be inserted the following subsection—

(2A) If in the case of a winding up by the court in England and Wales it appears to the liquidator, not being the official receiver, that any past or present officer of the company, or any member of it, has been guilty of an offence in relation to the company for which he is criminally liable, the liquidator shall report the matter to the official receiver.

45

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46

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47

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48

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49

• (1) In subsection (1) of section 664 (power to alter monetary limits), for the words " regulations in a " there shall be substituted the words " order made by ".

• (2) For subsection (2) of that section there shall be substituted the following subsections—

(2) An order under this section may contain such transitional provisions as may appear to the Secretary of State necessary or expedient. (3) No order under this section increasing or reducing any of the money sums for the time specified in section 512(2), 515(3) or 518(1)(a) shall be made unless a draft of the order has been laid before and approved by a resolution of each House of Parliament. (4) A statutory instrument containing an order under this section, other than an order to which subsection (3) above applies, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

50

In section 667((1)(a)) (inability of unregistered company to pay debts), after the word " demand " there shall be inserted the words " in the prescribed form ".

51

In section 668(6) (inability of unregistered company to pay its debts assumed if demand not complied with within 10 days), for the words "10 days" there shall be substituted the words " 3 weeks ".

52

• (1) In section 669 (inability of unregistered company to pay debts), at the end of paragraph (d) there shall be inserted the words " as they fall due ".

• (2) That section, as amended by sub-paragraph (1) above, shall be re-numbered as subsection (1) of that section and after that provision as so renumbered there shall be inserted the following subsection—

(2) An unregistered company is also deemed unable to pay its debts if it is proved to the satisfaction of the court that the value of the company's assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities.

SCHEDULE 7

Courts

1

Provision with respect to the arrangement and disposition of the business under Part III of this Act of courts having jurisdiction for the purpose of that Part, including provision for the allocation of proceedings under that Part to particular courts and for the transfer of such proceedings from one court to another.

2

Provision for enabling a registrar in bankruptcy of the High Court or a registrar of a county court having jurisdiction for the purposes of Part III of this Act to exercise such of the jurisdiction conferred for those purposes on the High Court or, as the case may be, that county court as may be prescribed.

3

Provision for regulating the practice and procedure of any court exercising jurisdiction for the purposes of Part III of this Act. being any provision that could be made by rules of court.

4

Provision conferring rights of audience, in courts exercising jurisdiction for the purposes of Part III of this Act, on the official receiver and on solicitors.

Notices etc.

5

Provision requiring notice of any proceedings under Part III of this Act or of any matter relating to or arising out of a proposal under Chapter I of that Part or a bankruptcy to be given or published in the prescribed manner.

6

Provision with respect to the form, manner of serving, contents and proof of any petition, application, order, notice, statement, or other document required to be presented, made, given, published or prepared under any enactment contained in, or subordinate legislation made under, Part III of this Act (including provision requiring prescribed matters to be verified by affidavit).

7

Provision specifying the persons to whom any notice under Part III of this Act is to be given.

Registration of voluntary arrangements

8

Provision for the registration of compositions or schemes approved under Chapter I of Part IIT of this Act. including provision for the keeping and inspection of a register.

Interim receiver

9

Provision as to the manner in which an interim receiver appointed under section 133 of this Act is to carry out his functions, including any such provision as is specified in relation to the trustee of a bankrupt's estate in paragraph 21 or 27 below.

Receiver or manager

10

Provision as to the manner in which the official receiver is to carry out his functions as receiver or manager of a bankrupt's estate under section 134 of this Act, including any such provision as is specified in relation to the trustee of a bankrupt's estate in paragraph 21 or 27 below.

Administration of individual insolvency

11

Provision with respect to the certification of the appointment of any person as trustee of a bankrupt's estate and as to the proof of that appointment.

12

The following provision with respect to meetings of creditors—

• (a) provision as to the manner of summoning a meeting (including provision as to how any power to require a meeting is to be exercised, provision as to the manner of determining the value of any debt for the purposes of any such power and provision making the exercise of any such power subject to the deposit of a sum sufficient to cover the expenses likely to be incurred in summoning and holding a meeting);

• (b) provision specifying the time and place at which a meeting may be held and the period of notice required for a meeting :

• (c) provision as to the procedure to be followed at such a meeting (including the manner in which decisions may be reached by a meeting and the manner in which the value of any vote at a meeting is to be determined);

• (d) provision for requiring a bankrupt or debtor to attend a meeting ;

• (e) provision creating, in the prescribed circumstances, a presumption that a meeting has been duly summoned and held ; and

• (f) provision as to the manner of proving the decisions of a meeting.

13

Provision as to the functions, membership and proceedings of a committee established under section 148 of this Act.

14

Provision as to the manner in which any requirement that may be imposed on a person under Part III of this Act by the official receiver, the trustee of a bankrupt's estate or a special manager appointed under section 198 of this Act is to be so imposed and, in the case of any requirement imposed under section 152(3) of this Act, provision conferring power on the court to make orders for the purpose of securing compliance with that requirement.

15

Provision as to the manner in which any requirement imposed by virtue of section 156(3) of this Act is to take effect.

16

Provision as to the terms and conditions that may be included in a charge under section 159 of this Act.

17

Provision as to the debts that may be proved in any bankruptcy, as to the manner and conditions of proving a debt and as to the manner and expenses of establishing the value of any debt or security.

18

Provision with respect to the manner of the distribution of a bankrupt's estate, including provision with respect to unclaimed funds and dividends.

19

Provision modifying the application of Part III of this Act in relation to a debtor or bankrupt who has died.

Financial provisions

20

Provision as to the amount, or manner of determining the amount, payable to an interim receiver, the trustee of a bankrupt's estate or a special manager appointed under section 198 of this Act by way of remuneration for the performance of functions in connection with or arising out of the bankruptcy of any person.

21

Provision with respect to the manner in which moneys received by the trustee of a bankrupt's estate in the course of carrying out his functions as such are to be handled.

22

Provision as to the fees, costs, charges and other expenses that may be treated as the expenses of a bankruptcy.

23

Provision as to the fees, costs, charges and other expenses that may be incurred for any of the purposes of Chapter I of Part III of this Act or in the administration of any composition or scheme approved under that Chapter.

Information and records

24

Provision requiring registrars and other officers of courts having jurisdiction for the purposes of Part ITI of this Act-

• (a) to keep books and other records with respect to the exercise of that jurisdiction and of jurisdiction under the Deeds of Arrangement Act 1914 ; and

• (b) to make returns to the Secretary of State of the business of those courts.

25

Provision requiring a creditor or a committee established under section 148 of this Act to be supplied (on payment in prescribed cases of the prescribed fee) with such information and with copies of such documents as may be prescribed.

26

Provision as to the manner in which public examinations under section 137 of this Act and proceedings under section 196 of this Act are to be conducted, as to the circumstances in which records of such examinations and proceedings are to be made available to prescribed persons and as to the costs of such examinations and proceedings.

27

Provision imposing requirements with respect to—

• (a) the preparation and keeping by the trustee of a bankrupt's estate, or the supervisor of a composition or scheme approved under Chapter I of Part III of this Act, of prescribed books, accounts and other records ;

• (b) the production of those books, accounts and records for inspection by prescribed persons ; and

• (c) the auditing of accounts kept by the trustee of a bankrupt's estate or the supervisor of such a composition or scheme.

28

Provision requiring the person who is the supervisor of a composition or scheme approved under Chapter I of Part III of this Act, when it appears to him that the composition or scheme has been fully implemented and that nothing remains to be done by him under the composition or scheme—

• (a) to give notice of that fact to persons bound by the composition or scheme ; and

• (b) to report to those persons on the carrying out of the functions conferred on the supervisor of the composition or scheme.

29

Provision as to the manner in which the trustee of a bankrupt's estate is to act in relation to the books, papers and other records of the bankrupt, including provision authorising their disposal.

General

30

Provision conferring power on the Secretary of State to make regulations with respect to so much of any matter that may be provided for in the rules as relates to the carrying out of the functions of an interim receiver appointed under section 133 of this Act, of the official receiver while acting as a receiver or manager under section 134 of this Act or of a trustee of a bankrupt's estate.

31

Provision conferring a discretion on the court.

32

Provision making non-compliance with any of the rules a criminal offence.

33

Provision making different provision for different cases, including different provision for different areas.

SCHEDULE 8

The Bills of Sale Act (1878) Amendment Act 1882

1

In section 11 of the Bills of Sale Act (1878) Amendment Act 1882 (local registration of bills of sale), for the words “the London bankruptcy district as defined by the Bankruptcy Act 1869” and the words “the said London bankruptcy district” there shall be substituted, in each case, the words “the London insolvency district”.

The Deeds of Arrangement Act 1914

2

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The Settled Land Act 1925

3

In section 103 of the Settled Land Act 1925 (legal estate in settled land not to vest in trustee in bankruptcy of estate owner), for the words from the beginning to “an” there shall be substituted the words “For the purposes of determining, where the estate owner of any settled land is bankrupt, whether the legal estate in the settled land is comprised in, or is capable of being claimed for, the bankrupt’s estate, the legal estate in the settled land shall be deemed not to vest in the”.

The Law of Property Act 1925

4

In section 52(2)(b) of the Law of Property Act 1925 (exceptions from requirement that conveyances are to be by deed), for the words “section fifty-four of the Bankruptcy Act 1914” there shall be substituted the words “section 91 or 161 of the Insolvency Act 1985”.

The Land Registration Act 1925

5

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The Agricultural Credits Act 1928

6

In section 7 of the Agricultural Credits Act 1928 (effect of floating charge), in paragraph (a)(i) of the proviso, for the words “receiving order in bankruptcy” there shall be substituted the words “bankruptcy order”.

...

7

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The Exchange Control Act 1947

8

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The Agricultural Holdings Act 1948

9

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The Arbitration Act 1950

10

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The Administration of Justice Act 1956

11

In section 40 of the Administration of Justice Act 1956 (effect of registration of judgments of courts outside England and Wales)—

• (a) the words “the Bankruptcy Act 1914” shall be omitted; and

• (b) for the words “those Acts” there shall be substituted the words “the said Act of 1869”.

The Licensing Act 1964

12

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The Law of Property (Joint Tenants) Act 1964

13

In paragraph (b) of the proviso to section 1(1) of the Law of Property (Joint Tenants) Act 1964 (assumptions on sale of land by survivor of joint tenants), for the words “a receiving order in bankruptcy” there shall be substituted the words “a bankruptcy order”.

The General Rate Act 1967

14

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The Medicines Act 1968

15

In section 72(4) of the Medicines Act 1968 (which specifies the persons who may carry on the business of a pharmacist in the case of his death or disability), at the end there shall be inserted the words—

; and in paragraph (b) above the reference to a trustee appointed under a composition, scheme or deed of arrangement includes a reference to the supervisor of a composition or scheme proposed for the purposes of, and approved under, Chapter I of Part III of the Insolvency Act 1985.

The Transport Act 1968

16

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The Insolvency Services (Accounting and Investment) Act 1970

17

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The Conveyancing and Feudal Reform (Scotland) Act 1970

18

In schedule 3 to the Conveyancing and Feudal Reform (Scotland) Act 1970 (the standard conditions of a security), in standard condition 9(2)(b), for the words from “or an order” to “1925” there shall be substituted the words “or his estate falls to be administered in accordance with an order under section 228 of the Insolvency Act 1985”.

The Superannuation Act 1972

19

In section 5(2) of the Superannuation Act 1972 (rule that benefit is unassignable not to affect powers of court under section 51(2) of the Bankruptcy Act 1914)—

• (a) for the words “section 51(2) of the Bankruptcy Act 1914” there shall be substituted the words “section 156 of the Insolvency Act 1985”; and

• (b) for the words “the said section 51(2)” there shall be substituted the words “section 51(2) of the Bankruptcy Act 1914 or the said section 156”.

The Road Traffic Act 1972

20

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The Land Charges Act 1972

21

• (1) The Land Charges Act 1972 shall be amended as follows.

• (2) In section 5(8) (unregistered bankruptcy petition not to bind purchaser in good faith, for money or money’s worth without notice of an available act of bankruptcy) the words “without notice of an available act of bankruptcy” shall be omitted.

• (3) In section 6 (the register of writs and orders affecting land)—

• (a) for paragraph (c) of subsection (1) there shall be substituted the following paragraph—

(c) any bankruptcy order, whether or not the bankrupt’s estate is known to include land,

;

• (b) in subsection (3), for the words “receiving order in bankruptcy” there shall be substituted the words “bankruptcy order”;

• (c) for subsection (5) there shall be substituted the following subsection—

(5) Subject to subsection (6) below, the title of a trustee in bankruptcy shall be void as against a purchaser of a legal estate in good faith for money or money’s worth unless the bankruptcy order is for the time being registered under this section.

; and

• (d) in subsection (6), the words “without notice of an available act of bankruptcy” shall be omitted.

• (4) In section 16(2) (general rules)—

• (a) for the words “general rules under section 132 of the Bankruptcy Act 1914 for carrying into effect the objects of that Act” there shall be substituted the words “rules under section 207 of the Insolvency Act 1985”;

• (b) for the words “a receiving order in bankruptcy” there shall be substituted the words “a bankruptcy order”; and

• (c) for the words “by that Act” there shall be substituted the words “by Part III of that Act”.

The Local Government Act 1972

22

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The Matrimonial Causes Act 1973

23

In section 39 of the Matrimonial Causes Act 1973 (settlement etc. made in compliance with a property adjustment order may be avoided on bankruptcy of settlor), for the words from “a settlement of” onwards there shall be substituted the words “a transaction in respect of which an order may be made under section 174 of the Insolvency Act 1985 (transactions at an undervalue and preferences)”.

The Powers of Criminal Courts Act 1973

24

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Solicitors Act 1974

25

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Social Security Pensions Act 1975

26

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Recess Elections Act 1975

27

In section 1(2) of the Recess Elections Act 1975 (which defines certain expressions used in that Act), in the definition of “certificate of vacancy” for the words from “the relevant bankruptcy enactment” to the end of paragraph (b) there shall be substituted the words “section 214(6)(a) of the Insolvency Act 1985”.

The Insolvency Act 1976

28

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Land Drainage Act 1976

29

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Agricultural Holdings (Notices to Quit) Act 1977

30

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Employment Protection (Consolidation) Act 1978

31

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Banking Act 1979

32

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Estate Agents Act 1979

33

In section 23(2) of the Estate Agents Act 1979 (prohibition on bankrupts engaging in estate agency work to cease on discharge), for paragraph (b) there shall be substituted the following paragraph—

The Public Passenger Vehicles Act 1981

34

In section 19(3) of the Public Passenger Vehicles Act 1981 (holder of PSV operator’s licence to give notice of bankruptcy etc.), after the word “estate” there shall be inserted the words “or the making of an administration order under Chapter III of Part II of the Insolvency Act 1985 in relation to the holder”.

The Senior Courts Act 1981

35

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Civil Jurisdiction and Judgments Act 1982

36

After paragraph (b) of section 18(3) of the Civil Jurisdiction and Judgments Act 1982 (judgments to which provisions relating to the enforcement of judgments within the United Kingdom do not apply), there shall be inserted the following paragraph—

The Insurance Companies Act 1982

37

• (1) The Insurance Companies Act 1982 shall be amended as follows.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) In section 56 (continuation of long term business of insurance companies in liquidation)—

• (a) in subsection (4), for the words “Section 556(3) of the Companies Act” and for the words “section 556 of the Companies Act” there shall be substituted, respectively, the words “Section 90(5) of the Insolvency Act 1985” and the words “section 90 of the said Act of 1985”;

• (b) in subsection (7), for the words “committee of inspection” there shall be substituted the words “a specified committee”.

• (4) In section 59 (winding-up rules)—

• (a) in subsection (1), for the words “section 663 of the Companies Act” there shall be substituted the words “section 106 of the Insolvency Act 1985”; and

• (b) in subsection (2), for the words “section 663 of the Companies Act” and the words “section 614 of, and schedule 19 to, the Companies Act” there shall be substituted, respectively, the words “section 106 of the Insolvency Act 1985” and the words “section 89 of, and schedule 4 to, the Insolvency Act 1985”.

The County Courts Act 1984

38

• (1) The County Courts Act 1984 shall be amended as follows.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Housing Act 1985

39

• (1) The Housing Act 1985 shall be amended as follows.

• (2) In paragraph 3(4) of schedule 18 (suspension of condition as to residence), for the words “is administered in bankruptcy under section 130 of the Bankruptcy Act 1914” there shall be substituted the words “falls to be administered in accordance with an order under section 228 of the Insolvency Act 1985”.

• (3) In paragraph 5(3) of that schedule (conditions affecting house purchased by means of advance), for the words “being administered in bankruptcy under section 130 of the Bankruptcy Act 1914” there shall be substituted the words “falling to be administered in accordance with an order under section 228 of the Insolvency Act 1985”.

The Administration of Justice Act 1985

40

In section 16(1)(g) of the Administration of Justice Act 1985 (conditional licences), for the words “and having obtained his discharge” there shall be substituted the words “and discharged”.

SCHEDULE 9

Part I

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II

Disqualification etc.

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

An application shall not be made under section 13 of this Act in relation to a report made or information or documents obtained before the coming into force of that section.

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

Section 17 of this Act shall not apply where the relevant company (within the meaning of that section) went into liquidation before the coming into force of that section.

Administration orders

6

• (1) Where any right to appoint an administrative receiver of a company is conferred by any debentures or floating charge created before the coming into force of Chapter III of Part II of this Act, the conditions precedent to the exercise of that right shall be deemed to include the presentation of a petition applying for an administration order to be made in relation to the company.

• (2) In this paragraph " administrative receiver " has the same meaning as in Part II of this Act.

Receivers and managers (England and Wales)

7

• (1) Subject to sub-paragraph (2) below, where any provision of Chapter IV or VII of Part II of this Act or an amendment specified in paragraphs 15 to 17 of Schedule 6 to this Act comes into force, that provision or amendment shall not apply in relation to any receiver or manager of a company's property who was appointed before the coming into force of that provision or amendment and, in relation to any such receiver or manager who was so appointed, the 1985 Act shall have effect without such of the repeals made by this Act as come into force at the same time as that provision or amendment.

• (2) Sub-paragraph (1) above shall be without prejudice to the power conferred by this Act under which rules under section 106 of this Act may make transitional provision in connection with the coming into force of those rules; and such provision may apply those rules in relation to the receiver or manager of a company's property notwithstanding that the receiver or manager was appointed before the coming into force of the rules or of the said section 106.

Receivers (Scotland)

8

• (1) Subject to sub-paragraph (2) below, where any provision of Chapter V or VII of Part II of this Act or any amendment made by paragraphs 18 to 22 of Schedule 6 to this Act comes into force, that provision or amendment shall not apply in relation to any receiver appointed under section 467 of the 1985 Act before the coming into force of that provision or amendment.

• (2) Sub-paragraph (2) above shall be without prejudice to the power conferred by this Act under which rules under section 106 of this Act may make transitional provision in connection with the corning into force of those rules; and such provision may apply those rules in relation to a receiver appointed under section 467 of the 1985 Act notwithstanding that the receiver was appointed before the coming into force of the rules or of the said section 106.

Winding up etc.

9

• (1) Subject to sub-paragraphs (2) to (8) and paragraph 10 below, where any provision of Chapter VI or VII of Part II of this Act (except section 88) or any amendment specified in any of paragraphs 23 to 52 of Schedule 6 to this Act comes into force, that provision or amendment shall not apply in relation to any winding up which has commenced or is treated as having commenced before the coming into force of that provision or amendment; and, in relation to any such winding up, the 1985 Act shall have effect without such of the repeals made by this Act as come into force at the same time as that provision or amendment.

• (2) Where a Winding up by the court in England and Wales has commenced or is treated as having commenced before the coming into force of section 66 of this Act, the official receiver or (on appeal from a refusal by the official receiver) the court may, at any time after the coining into force of that section—

• (a) release any person from an obligation imposed on him by or under section 528 of the 1985 Act (statements of affairs); or

• (b) extend the period specified in subsection (6) of the said section 528 ;

and, accordingly, after the coming into force of the said section 66, subsection (6) of the said section 528 shall have effect in relation to a winding up to which this sub-paragraph applies with the omission of the words from " or within " onwards.

• (3) Where a winding up by the court in England and Wales has commenced or is treated as having commenced before the coming into force of section 70 of this Act, the official receiver may at any time when he is liquidator of the company apply to the Secretary of State for the appointment of a person as liquidator in place of the official receiver; and on any such application the Secretary of State shall either make an appointment or decline to make one.

• (4) Where a winding up by the court in England and Wales has commenced or is treated as having commenced before the coming into force of section 80 of this Act and, at the time of the coming into force of that section, the liquidator of that company has not made an application under section 545 of the 1985 Act (release of liquidators), then—

• (a) except where the Secretary of State otherwise directs, section 78(1) and (2) and 79(8) of this Act shall apply, and the said section 545 shall not apply, in relation to any liquidator of that company who holds office on or at any time after the day on which the said section 80 comes into force and is not the official receiver ;

• (b) section 78(3) of this Act shall apply in relation to the carrying out at any time after the coming into force of the said section 80 by any liquidator of the company of any of his functions ; and

• (c) a liquidator in relation to whom section 79(8) of this Act has effect by virtue of this paragraph shall have his release with effect from the time specified in section 80(4)(d) of this Act.

• (5) Subsection (6) of section 80 of this Act shall have effect for the purposes of sub-paragraph (4)(c) above as it has effect for the purposes of that section but as if the reference to section 19 of this Act were a reference to section 631 of the 1985 Act.

• (6) The repeals in Part II of Schedule 10 to this Act of references to a winding up under the supervision of the court shall not affect the operation of the enactments in which the references are contained in relation to any case in which an order under section 606 of that Act was made before the coming into force of section 88 of this Act

• (7) The preceding provisions of this paragraph shall be without prejudice to the power conferred by this Act under which rules under section 106 of this Act may make transitional provision in connection with the coming into force of those rules; and such provision may apply those rules in relation to a winding up notwithstanding that the winding up commenced or is treated as having commenced before the coming into force of the rules or of the said section 106.

• (8) Where a winding up has commenced or is treated as having commenced before the corning into force of sub-paragraph (3) of paragraph 31 of Schedule 6 to this Act, the liquidator may nevertheless employ a solicitor to assist him in the carrying out of his functions without the permission of the committee of inspection; but if he does so employ a solicitor he shall inform the committee of inspection that he has done so.

Setting aside preferences and other transactions

10

• (1) Where a provision of Chapter VII of Part II of this Act applies in relation to a winding up or in relation to a case in which an administration order has been made, a preference given, floating charge created or other transaction entered into before the coming into force of that provision shall not be set aside under that provision except to the extent that it could have been set aside under the law in force immediately before the coming into force of that provision, assuming for this purpose that any relevant administration order had been a winding-up order.

• (2) The references in sub-paragraph (1) above to setting aside a preference, floating charge or other transaction include references to the making of any order which varies or reverses any effect of a preference, floating charge or other transaction.

PART III — Individual Insolvency

Bankruptcy: general

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

• (1) In relation to any such case as is mentioned in paragraph 11(1) above the references in any enactment or subordinate legislation to a petition, order or other matter which is provided for under the Bankruptcy Act 1914 and corresponds to a petition, order or other matter provided for under Part III of this Act shall continue on and after the bankruptcy commencement date to have effect as references to the petition, order or matter provided for by the said Act of 1914; but, save as aforesaid, those references shall have effect on and after that date as references to the petition, order or matter provided for by Part III of this Act

• (2) Without prejudice to sub-paragraph (1) above, in determining for the purposes' of section 126 of this Act or paragraph 14 below whether any person was an undischarged bankrupt at a time before the bankruptcy commencement date, an adjudication in bankruptcy and an annulment of a bankruptcy under the Bankruptcy Act 1914 shall be taken into account in the same way, respectively, as a bankruptcy order under Part III of this Act and the annulment under section 129 of this Act of such an order.

13

Transactions entered into before the bankruptcy commencement date shall have effect on and after that date as if references to acts of bankruptcy in the provisions for giving effect to those transactions continued to be references to acts of bankruptcy within the meaning of the Bankruptcy. Act 1914, but as if such acts included failure to comply with a demand served under section 120(3) of this Act.

Discharge from old bankruptcy

14

• (1) Where a person—

• (a) was adjudged bankrupt before the bankruptcy commencement date or is adjudged bankrupt on or after that date on a petition presented before that date ; and

• (b) that person was not an undischarged bankrupt at any time in the period of fifteen years ending with the adjudication,

that person shall be deemed (if not previously discharged) to be discharged from his bankruptcy for the purposes of the Bankruptcy Act 1914 at the end of the discharge period.

• (2) Subject to sub-paragraph (3) below, the discharge period for the purposes of this paragraph is—

• (a) in the case of a person adjudged bankrupt before the bankruptcy commencement date, the period of three years beginning with that date ; and

• (b) in the case of a person who is adjudged bankrupt after that date on a petition presented before that date, the period of three years beginning with the date of the adjudication.

• (3) Where the court exercising jurisdiction in relation to a bankruptcy to which this paragraph applies is satisfied, on the application of the official receiver, that the bankrupt has failed, or is failing, to comply with any of his obligations under the Bankruptcy Act 1914, any rates made under that Act or any such rules as are mentioned in paragraph 22(1) below, the court may order that the discharge period shall cease to run 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.

Appointment of trustee by Secretary of State

15

Where a person was adjudged bankrupt before the bankruptcy commencement date or is adjudged bankrupt on or after that date on a petition presented before mat date, the official receiver may at any time when he is the trustee of the bankrupt's estate apply to the Secretary of State for the appointment of a person as trustee instead of the official receiver; and on any such application the Secretary of State shall either make an appointment or decline to make one.

Release of trustee in old bankruptcy

16

• (1) Where a person was adjudged bankrupt before the bankruptcy commencement date or is adjudged bankrupt on or after that date on a petition presented before that date, and (in the former case) at that date the trustee of the bankrupt's estate has not made an application under section 93 of the Bankruptcy Act 1914 (release of trustee), then—

• (a) except where the Secretary of State otherwise directs, sections 145(8), 151 and 168(1) and (2) of this Act shall apply, and the said section 93 shall not apply, in relation to any trustee of the bankrupt's estate who holds office on or at any time after the bankruptcy commencement date and is not the official receiver;

• (b) section 168(4) of this Act shall apply in relation to the carrying out at any time after the bankruptcy commencement date by the trustee of the bankrupt's estate of any of his functions ; and

• (c) a trustee in relation to whom section 145(8) of this Act has effect by virtue of this paragraph shall have his release with effect from the time specified in section 146(3)(d) of this Act.

• (2) Subsection (5) of section 146 of this Act shall have effect for the purposes of sub-paragraph (1)(c) above as it has effect for the purposes of that section.

• (3) In me application of subsection (2) of section 168 of this Act in relation to a case by virtue of this paragraph, the reference in that subsection to section 167(1) of this Act shall have effect as a reference to section 67 of the Bankruptcy Act 1914.

Power to employ solicitor

17

Where a person was adjudged bankrupt before the bankruptcy commencement date or is adjudged bankrupt on or after that date on a petition presented before that date, the trustee of that person's estate may employ a solicitor to assist him in the carrying out of his functions without the permission of the committee of inspection; but, if he does so employ a solicitor, he shall inform the committee of inspection that he has done so.

Copyright

18

Where a person who is adjudged bankrupt on a petition presented after the bankruptcy commencement date is liable, by virtue of a transaction entered into before that date, to pay royalties or a share of the profits to any person in respect of any copyright or interest in copyright comprised in the bankrupt's estate, section 60 of the Bankruptcy Act 1914 (limitation on trustee's powers in relation to copyright) shall apply in relation to the trustee of that estate as it applies in relation to a trustee in bankruptcy under the said Act of 1914.

Second bankruptcy

19

• (1) Section 170 of this Act shall apply with the following modifications where the earlier bankruptcy (within the meaning of that section) is a bankruptcy in relation to which the Bankruptcy Act 1914 applies instead of Part III of this Act, that is to say—

• (a) references to property vested in the existing trustee under section 154(3) of this Act shall have effect as references to such property vested in that trustee as was acquired by or devolved on the bankrupt after the commencement (within the meaning of the said Act of 1914) of the earlier bankruptcy; and

• (b) references to an order under section 156 of this Act shall have effect as references to an order under section 51 of the said Act of 1914.

• (2) Section 39 of the said Act of 1914 (second bankruptcy) shall not apply where a person who is an undischarged bankrupt under that Act is adjudged bankrupt under this Act.

Setting aside preferences and other transactions

20

• (1) A preference given, assignment made or other transaction entered into before the bankruptcy commencement date shall not be set aside under any of sections 174 to 177 of this Act except to the extent that it could have been set aside under the law in force immediately before that date.

• (2) References in sub-paragraph (1) above to setting aside a preference, assignment or other transaction include references to the making of any order which varies or reverses any effect of a preference, assignment or other transaction.

Bankruptcy offences

21

• (1) Where a bankruptcy order is made under Part III of this Act on or after the bankruptcy commencement date, a person shall not be guilty of an offence under Chapter VII of Part III of this Act in respect of anything done before that date but, notwithstanding the repeal by this Act of the Bankruptcy Act 1914, shall be guilty of an offence under that Act in respect of anything done before that date which would have been an offence under that Act if the making of the bankruptcy order had been the making of a receiving order under that Act.

• (2) Subsection (6) of section 183 of this Act shall apply (instead of sections 157(2), 158(2), 161 and 165 of the Bankruptcy Act 1914) in relation to proceedings for an offence under that Act which are instituted (whether by virtue of sub-paragraph (1) above or otherwise) after the bankruptcy commencement date.

Power to make rules

22

• (1) The preceding provisions of this Part of this Schedule shall be without prejudice to the power conferred by this Act under which rules under section 207 of this Act may make transitional provision in connection with the coming into force of those rules ; and such provision may apply those rules in relation to a bankruptcy notwithstanding that it arose from a petition presented before either the coming into force of the rules or the bankruptcy commencement date.

• (2) Rules under the said section 207 may provide for such notices served before the bankruptcy commencement date as may be prescribed to be treated for the purposes of Part III of this Act as demands served under section 120(3) of this Act.

The bankruptcy commencement date

23

In this Part of this Schedule " the bankruptcy commencement date " means the date appointed under section 236 of this Act for the coming into force of Part III of this Act.

PART IV — Miscellaneous

24

• (1) A transaction entered into before the coming into force of section 212 of this Act, shall not be set aside under that section except to the extent that it could have been set aside under the law in force immediately before that date.

• (2) References in sub-paragraph (1) above to setting aside a transaction include references to the making of any order which varies or reverses any effect of a transaction.

SCHEDULE 10

PART I — Repeals Consequential on Part I

PART II — Repeals Consequential on Part II

PART III — Repeals Relating to Bankruptcy

PART IV — Other Repeals

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Parts III and IV

Editorial notes