Enterprise Act 2002

• (h) the extent to which, and the circumstances in which, provisions of the order affecting a company or other body of persons corporate or unincorporate in its share capital, constitution or other matters may be altered by the company or other body of persons concerned;

• (i) the registration of the order under any enactment by a company or other body of persons corporate or unincorporate which is affected by it as mentioned in paragraph (h);

• (j) the continuation, with any necessary change of parties, of any legal proceedings;

• (k) the approval by the relevant authority or another person of anything required by virtue of the order to be done or of any person to whom anything is to be transferred, or in whom anything is to be vested, by virtue of the order; or

• (l) the appointment of trustees or other persons to do anything on behalf of another person which is required of that person by virtue of the order or to monitor the doing by that person of any such thing.

14

The references in paragraph 13 to the division of a business as mentioned in sub-paragraph (1)(a) of that paragraph shall, in the case of an order under section 75, 83, 84, 160 or 161, or an order under paragraph 5, 10 or 11 of Schedule 7, be construed as including references to the separation, by the sale of any part of any undertaking or assets concerned or other means, of enterprises which are under common control (within the meaning of section 26) otherwise than by reason of their being enterprises of interconnected bodies corporate.

Supply and publication of information

15

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

16

An order may prohibit any person from notifying (whether by publication or otherwise) to persons supplying goods or services prices recommended or suggested as appropriate to be charged by those persons for those goods or services.

17

• (1) An order may require a person supplying goods or services to publish or otherwise notify —

• (a) accounting information in relation to the supply of the goods or services;

• (b) information in relation to the quantities of goods or services supplied;

• (c) information in relation to the geographical areas in which they are supplied.

• (d) information in relation to prices of the goods or services supplied;

• (e) such other information in relation to the goods or services supplied as the relevant authority considers appropriate.

• (1A) An order may prohibit the publication or other notification of information falling within sub-paragraph (1)(a) to (e) by a person supplying goods or services.

• (2) In sub-paragraph (1) “accounting information”, in relation to a supply of goods or services, means information as to—

• (a) the costs of the supply, including fixed costs and overheads;

• (b) the manner in which fixed costs and overheads are calculated and apportioned for accounting purposes of the supplier; and

• (c) the income attributable to the supply.

18

An order made by virtue of paragraph ... 17 may provide for the manner in which information is to be published or otherwise notified.

19

An order may—

• (a) require any person to supply information to the relevant authority;

• (b) where the CMA is not the relevant authority, require any person to supply information to the CMA;

• (c) provide for the publication, by the person who has received information by virtue of paragraph (a) or (b), of that information.

National security

20

• (1) An order may make such provision as the person making the order considers to be appropriate in the interests of national security ... .

• (2) Such provision may, in particular, include provision requiring a person to do, or not to do, particular things.

Special administration regimes

21

• (1) An order, as well as making provision in relation to all cases to which it may extend, may make provision in relation to—

• (a) those cases subject to specified exceptions; or

• (b) any particular case or class of case.

• (2) An order may, in relation to the cases in relation to which it applies, make the full provision which may be made by it or any less provision (whether by way of exception or otherwise).

• (3) An order may make provision for matters to be determined under the order.

• (4) An order may—

• (a) make different provision for different cases or classes of case or different purposes;

• (b) make such transitional, transitory or saving provision as the person making it considers appropriate.

22

• (1) An order which may prohibit the doing of anything (or the refraining from doing anything) may in particular by virtue of paragraph 21(2) prohibit the doing of that thing (or the refraining from doing of it) except to such extent and in such circumstances as may be provided by or under the order.

• (2) Any such order may, in particular, prohibit the doing of that thing (or the refraining from doing of it)—

• (a) without the agreement of the relevant authority or another person; or

• (b) by or in relation to a person who has not been approved by the relevant authority or another person.

Interpretation

23

References in this Schedule to the notification of prices or other information are not limited to the notification in writing of prices or other information.

24

In this Schedule “the relevant authority” means—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) in the case of an order to be made by the CMA, the CMA; ...

• (c) in the case of an order to be made by the Secretary of State, the Secretary of State ; and

• (d) in the case of an order to be made by the Chancellor of the Duchy of Lancaster, the Chancellor of the Duchy of Lancaster.

SCHEDULE 9

Part 1 — Power of enforcement orders to amend licence conditions etc.

Telecommunications Act 1984 (c. 12)

1

Airports Act 1986 (c. 31)

2

• (1) Section 54 of the Airports Act 1986 (modification of certain conditions in force under Part 4 of that Act) shall be amended as follows.

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

• (3) Subsection (3) shall cease to have effect.

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

3

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

Gas Act 1986 (c. 44)

4

• (1) Section 27 of the Gas Act 1986 (modification of licence conditions by order) shall be amended as follows.

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

(1) Where the Office of Fair Trading, the Competition Commission or (as the case may be) the Secretary of State (in this section “the relevant authority”) makes a relevant order, the order may also provide for the modification of— (a) the conditions of a particular licence; or (b) the standard conditions of licences under section 7 above, licences under subsection (1) of section 7A above or licences under subsection (2) of that section, to such extent as may appear to the relevant authority to be requisite or expedient for the purpose of giving effect to, or taking account of, any provision made by the order. (1ZA) In subsection (1) above “relevant order” means— (a) an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11 of Schedule 7 to, the Enterprise Act 2002 where— (i) one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was engaged in the carrying on of activities authorised or regulated by a licence; or (ii) one or more than one of the enterprises which will or may cease to be distinct enterprises is engaged in the carrying on of activities authorised or regulated by a licence; or (b) an order under section 160 or 161 of that Act where the feature, or combination of features, of the market in the United Kingdom for goods or services which prevents, restricts or distorts competition relates to— (i) activities authorised or regulated by a licence; or (ii) the storage of gas on terms which have been determined by the holder of a licence under section 7 above, or could have been determined by the holder if he had thought fit or had been required to determine them by or under a condition of the licence.

• (3) In subsection (2)—

• (a) for the words “Secretary of State” there shall be substituted “ relevant authority ”;

• (b) for the words “section, he” there shall be substituted “ section, the relevant authority ”; and

• (c) for the words “as he considers” there shall be substituted “ as the relevant authority considers ”.

• (4) Subsections (3) and (4) shall cease to have effect.

• (5) In subsection (5)—

• (a) for the words “Secretary of State” there shall be substituted “ relevant authority ”; and

• (b) for the words “he”, in both places where they appear, there shall be substituted “ the relevant authority ”.

• (6) For subsection (6) there shall be substituted—

(6) Expressions used in subsection (1ZA) above and in Part 3 or (as the case may be) Part 4 of the Enterprise Act 2002 have the same meanings in that subsection as in that Part.

Electricity Act 1989 (c. 29)

5

• (1) Section 15 of the Electricity Act 1989 (modification of licence conditions by order) shall be amended as follows.

• (2) For subsections (1) and (2) there shall be substituted—

(1) Where the Office of Fair Trading, the Competition Commission or (as the case may be) the Secretary of State (in this section “the relevant authority”) makes a relevant order, the order may also provide for the modification of the conditions of a particular licence, or the standard conditions of licences of any type mentioned in section 6(1), to such extent as may appear to the relevant authority to be requisite or expedient for the purpose of giving effect to, or taking account of, any provision made by the order. (2) In subsection (1) above “relevant order” means— (a) an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11 of Schedule 7 to, the Enterprise Act 2002 where— (i) one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was engaged in the carrying on of activities authorised or regulated by a licence; or (ii) one or more than one of the enterprises which will or may cease to be distinct enterprises is engaged in the carrying on of activities authorised or regulated by a licence; or (b) an order under section 160 or 161 of that Act where the feature, or combination of features, of the market in the United Kingdom for goods or services which prevents, restricts or distorts competition relates to the generation, transmission, distribution or supply of electricity.

• (3) For subsection (2B) there shall be substituted—

(2B) Where the relevant authority modifies under subsection (1) the standard conditions of licences of any type, the relevant authority— (a) shall also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences of that type granted after that time; and (b) may, after consultation with the Authority, make such incidental or consequential modifications as the relevant authority considers necessary or expedient of any conditions of any licence of that type granted before that time.

• (4) In subsection (2C)—

• (a) for the words “Secretary of State” there shall be substituted “ relevant authority ”; and

• (b) for the words “he”, in both places where they appear, there shall be substituted “the relevant authority”.

• (5) For subsection (3) there shall be substituted—

(3) Expressions used in subsection (2) above and in Part 3 or (as the case may be) Part 4 of the Enterprise Act 2002 have the same meanings in that subsection as in that Part.

Broadcasting Act 1990 (c. 42)

6

For section 193 of the Broadcasting Act 1990 (modification of networking arrangements in consequence of reports under competition legislation) there shall be substituted—

(193) (1) Where the Office of Fair Trading, the Competition Commission or (as the case may be) the Secretary of State (in this section “the relevant authority”) makes a relevant order, the order may also provide for the modification of any networking arrangements to such extent as may appear to the relevant authority to be requisite or expedient for the purpose of giving effect to, or taking account of, any provision made by the order. (2) In subsection (1) “relevant order” means— (a) an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11 of Schedule 7 to, the Enterprise Act 2002 where— (i) one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was engaged in the provision of programmes for broadcasting in regional Channel 3 services; or (ii) one or more than one of the enterprises which will or may cease to be distinct enterprises is engaged in the provision of such programmes; or (b) an order under section 160 or 161 of that Act where the feature, or combination of features, of the market in the United Kingdom for goods or services which prevents, restricts or distorts competition relates to the provision of programmes for broadcasting in regional Channel 3 services. (3) Expressions used in subsection (2) and in Part 3 or (as the case may be) Part 4 of the Enterprise Act 2002 have the same meanings in that subsection as in that Part. (4) In this section — - “networking arrangements” means any such arrangements as are mentioned in section 39(1) above; and - “regional Channel 3 service” has the meaning given by section 14(6) above.

Water Industry Act 1991 (c. 56)

7

• (1) Section 17 of the Water Industry Act 1991 (modification of conditions of appointment by order) shall be amended as follows.

• (2) For subsections (1) and (2) there shall be substituted—

(1) Where the OFT, the Competition Commission or (as the case may be) the Secretary of State (in this section “the relevant authority”) makes a relevant order, the order may, subject to subsection (3), also provide for the modification of the conditions of a company’s appointment under this Chapter to such extent as may appear to the relevant authority to be requisite or expedient for the purpose of giving effect to, or taking account of, any provision made by the order. (2) In subsection (1) above “relevant order” means— (a) an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11 of Schedule 7 to, the 2002 Act where— (i) one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was carried on by a relevant undertaker; or (ii) one or more than one of the enterprises which will or may cease to be distinct enterprises is carried on by a relevant undertaker; or (b) an order under section 160 or 161 of the 2002 Act where the feature, or combination of features, of the market in the United Kingdom for goods or services which prevents, restricts or distorts competition is— (i) the structure or an aspect of the structure of a market for the supply of goods or services by a relevant undertaker; or (ii) the conduct of a relevant undertaker or of customers of a relevant undertaker.

• (3) For subsection (4) there shall be substituted—

(4) Expressions used in subsection (2) above and in Part 3 or (as the case may be) Part 4 of the 2002 Act have the same meanings in that subsection as in that Part.

8

In section 36(1) of that Act (interpretation of Part 2 of that Act)—

• (a) the definition of “the 1973 Act”, and the word “and” at the end of the definition, shall cease to have effect; and

• (b) at the end of the subsection there shall be inserted—

“the 2002 Act” means the Enterprise Act 2002;

.

Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1))

9

For article 18 of the Electricity (Northern Ireland) Order 1992 (modification of licence conditions by order) there shall be substituted—

(18) (1) Where the Office of Fair Trading, the Competition Commission or (as the case may be) the Secretary of State (in this Article “the relevant authority”) makes a relevant order, the order may also provide for the modification of the conditions of a licence to such extent as may appear to the relevant authority to be requisite or expedient for the purpose of giving effect to, or taking account of, any provision made by the order. (2) In paragraph (1) “relevant order” means— (a) an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11 of Schedule 7 to, the Enterprise Act 2002 where— (i) one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was engaged in the carrying on of activities authorised or regulated by a licence; or (ii) one or more than one of the enterprises which will or may cease to be distinct enterprises is engaged in the carrying on of activities authorised or regulated by a licence; or (b) an order under section 160 or 161 of that Act where the feature, or combination of features, of the market in the United Kingdom for goods or services which prevents, restricts or distorts competition relates to the generation, transmission or supply of electricity. (3) In paragraph (2) expressions which are also used in Part 3 or, as the case may be, Part 4 of the Enterprise Act 2002 have the same meanings as in that Part of that Act.

Railways Act 1993 (c. 43)

10

• (1) Section 16 of the Railways Act 1993 (modification of licence conditions by order) shall be amended as follows.

• (2) For subsections (1) and (2) there shall be substituted—

(1) Where the OFT, the Competition Commission or (as the case may be) the Secretary of State (in this section “the relevant authority”) makes a relevant order, the order may also provide for the modification of the conditions of a licence to such extent as may appear to the relevant authority to be requisite or expedient for the purpose of giving effect to, or taking account of, any provision made by the order. (2) In subsection (1) above “relevant order” means— (a) an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11 of Schedule 7 to, the Enterprise Act 2002 where— (i) one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was engaged in the supply of services relating to railways; or (ii) one or more than one of the enterprises which will or may cease to be distinct enterprises is engaged in the supply of services relating to railways; or (b) an order under section 160 or 161 of that Act where the feature, or combination of features, of the market in the United Kingdom for goods or services which prevents, restricts or distorts competition relates to the supply of services relating to railways.

• (3) In subsection (3) for the words “Secretary of State” there shall be substituted “ relevant authority ”.

• (4) For subsection (5) there shall be substituted—

(5) Expressions used in subsection (2) above and in Part 3 or (as the case may be) Part 4 of the Enterprise Act 2002 have the same meanings in that subsection as in that Part; and in subsection (2) above “services relating to railways” has the same meaning as in section 67(2A) of this Act.

Airports (Northern Ireland) Order 1994 (S.I. 1994/426 (N.I. 1))

11

• (1) Article 45 of the Airports (Northern Ireland) Order 1994 (modification of certain conditions in force under Part 4 of that Order) shall be amended as follows.

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

• (3) Paragraph (3) shall cease to have effect.

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

12

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

Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2))

13

• (1) Article 18 of the Gas (Northern Ireland) Order 1996 (modification of licence conditions by order) shall be amended as follows.

• (2) For paragraph (1) there shall be substituted—

(1) Where the Office of Fair Trading, the Competition Commission or (as the case may be) the Secretary of State (in this Article “the relevant authority”) makes a relevant order, the order may also provide for the modification of— (a) the conditions of a particular licence; or (b) the standard conditions of licences under sub-paragraph (a), (b) or (c) of Article 8(1), to such extent as may appear to the relevant authority to be requisite or expedient for the purpose of giving effect to, or taking account of, any provision made by the order. (1A) In paragraph (1) “relevant order” means— (a) an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11 of Schedule 7 to, the Enterprise Act 2002 where— (i) one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was engaged in the carrying on of activities authorised or regulated by a licence; or (ii) one or more than one of the enterprises which will or may cease to be distinct enterprises is engaged in the carrying on of activities authorised or regulated by a licence; or (b) an order under section 160 or 161 of that Act where the feature, or combination of features, of the market in the United Kingdom for goods or services which prevents, restricts or distorts competition relates to activities authorised or regulated by a licence.

• (3) In paragraph (2)—

• (a) for the words “Secretary of State modifies under paragraph (1)(ii)” there shall be substituted “ relevant authority modifies under paragraph (1)(b) ”; and

• (b) for the word “he”, in both places where it appears, there shall be substituted “ the relevant authority ”.

• (4) Paragraph (3) shall cease to have effect.

• (5) In paragraph (4)—

• (a) for the words “Secretary of State” there shall be substituted “ relevant authority ”; and

• (b) for the word “he”, in both places where it appears, there shall be substituted “ the relevant authority ”.

• (6) For paragraph (5) there shall be substituted—

(5) Expressions used in paragraph (1A) above and in Part 3 or (as the case may be) Part 4 of the Enterprise Act 2002 have the same meanings in that paragraph as in that Part.

Postal Services Act 2000 (c. 26)

14

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

Transport Act 2000 (c. 38)

15

• (1) Section 19 of the Transport Act 2000 (modification of licence conditions by order) shall be amended as follows.

• (2) For subsections (1) to (4) there shall be substituted—

(1) Where the Office of Fair Trading, the Competition Commission or (as the case may be) the Secretary of State (in this section “the relevant authority”) makes a relevant order, the order may also provide for the modification of the conditions of a licence to such extent as may appear to the relevant authority to be requisite or expedient for the purpose of giving effect to, or taking account of, any provision made by the order. (2) In subsection (1) above “relevant order” means— (a) an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11 of Schedule 7 to, the 2002 Act where— (i) one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was engaged in the provision of air traffic services; or (ii) one or more than one of the enterprises which will or may cease to be distinct enterprises is engaged in the provision of air traffic services; or (b) an order under section 160 or 161 of that Act where the feature, or combination of features, of the market in the United Kingdom for goods or services which prevents, restricts or distorts competition relates to the provision of air traffic services.

• (3) In subsection (5) for the words “Secretary of State” there shall be substituted “ relevant authority ”.

• (4) For subsection (6) there shall be substituted—

(6) Expressions used in subsection (2) above and in Part 3 or (as the case may be) Part 4 of the 2002 Act have the same meanings in that subsection as in that Part.

• (5) In subsection (7) for the words “1973 Act is the Fair Trading Act 1973” there shall be substituted “ 2002 Act is the Enterprise Act 2002 ”.

Part 2 — Application of Part 4 of this Act to sectoral regulators

Telecommunications Act 1984 (c. 12)

16

Gas Act 1986 (c. 44)

17

• (1) Section 36A of the Gas Act 1986 (application of monopoly provisions etc. to the Gas and Electricity Markets Authority) shall be amended as follows.

• (2) For subsection (2) (monopoly functions to be exercisable concurrently by the Gas and Electricity Markets Authority) there shall be substituted—

(2) The functions to which subsection (2A) below applies shall be concurrent functions of the Authority and the Office of Fair Trading. (2A) This subsection applies to the functions of the Office of Fair Trading under Part 4 of the Enterprise Act 2002 (other than sections 166 and 171) so far as relating to commercial activities connected with the carrying on of activities to which this subsection applies. (2B) So far as necessary for the purposes of, or in connection with, subsections (2) and (2A) above, references in Part 4 of the Act of 2002 to the Office of Fair Trading (including references in provisions of that Act applied by that Part) shall be construed as including references to the Authority (except in sections 166 and 171 of that Act and in any other provision of that Act where the context otherwise requires).

• (3) In subsection (4) for the word “(2)” there shall be substituted “ (2A) ”.

• (4) For subsection (5) there shall be substituted—

(5) Before the Office of Fair Trading or the Authority first exercises in relation to any matter functions which are exercisable concurrently by virtue of subsection (2) above, it shall consult the other. (5A) Neither the Office of Fair Trading nor the Authority shall exercise in relation to any matter functions which are exercisable concurrently by virtue of subsection (2) above if functions which are so exercisable have been exercised in relation to that matter by the other.

• (5) In subsection (7) for the words “Part IV or section 86 or 88 of the 1973 Act” there shall be substituted “ Part 4 of the Enterprise Act 2002 ”.

• (6) For subsection (8) there shall be substituted—

(8) Section 117 of the Enterprise Act 2002 (offences of supplying false or misleading information) as applied by section 180 of that Act shall have effect so far as relating to functions exercisable by the Authority by virtue of subsection (2) above as if the references in section 117(1)(a) and (2) to the Office of Fair Trading included references to the Authority.

• (7) Subsection (9) shall cease to have effect.

• (8) In subsection (10) for the words “mentioned in subsection (2) or (3) above” there shall be substituted “ exercisable by the Authority by virtue of subsection (2) or (3) above ”.

Electricity Act 1989 (c. 29)

18

• (1) Section 43 of the Electricity Act 1989 (application of monopoly provisions etc. to the Gas and Electricity Markets Authority) shall be amended as follows.

• (2) For subsection (2) (monopoly functions to be exercisable concurrently by the Gas and Electricity Markets Authority) there shall be substituted—

(2) The functions to which subsection (2A) below applies shall be concurrent functions of the Authority and the Office of Fair Trading. (2A) This subsection applies to the functions of the Office of Fair Trading under Part 4 of the Enterprise Act 2002 (other than sections 166 and 171) so far as relating to commercial activities connected with the generation, transmission or supply of electricity. (2B) So far as necessary for the purposes of, or in connection with, subsections (2) and (2A) above, references in Part 4 of the Act of 2002 to the Office of Fair Trading (including references in provisions of that Act applied by that Part) shall be construed as including references to the Authority (except in sections 166 and 171 of that Act and in any other provision of that Act where the context otherwise requires).

• (3) For subsection (4) there shall be substituted—

(4) Before the Office of Fair Trading or the Authority first exercises in relation to any matter functions which are exercisable concurrently by virtue of subsection (2) above, it shall consult the other. (4A) Neither the Office of Fair Trading nor the Authority shall exercise in relation to any matter functions which are exercisable concurrently by virtue of subsection (2) above if functions which are so exercisable have been exercised in relation to that matter by the other.

• (4) In subsection (6)—

• (a) for the word “(2)” there shall be substituted “ (2A) ”;

• (b) the words from“or paragraph” to “Act 1994” shall cease to have effect; and

• (c) for the words “Part IV or section 86 or 88 of the 1973 Act” there shall be substituted “ Part 4 of the Enterprise Act 2002 ”.

• (5) For subsection (6A) there shall be substituted—

(6A) Section 117 of the Enterprise Act 2002 (offences of supplying false or misleading information) as applied by section 180 of that Act shall have effect so far as relating to functions exercisable by the Authority by virtue of subsection (2) above as if the references in section 117(1)(a) and (2) to the Office of Fair Trading included references to the Authority.

• (6) Subsection (7) shall cease to have effect.

Water Industry Act 1991 (c. 56)

19

• (1) Section 31 of the Water Industry Act 1991 (application of monopoly provisions etc. to the Director General of Water Services) shall be amended as follows.

• (2) For subsection (2) (monopoly functions to be exercisable concurrently by the Director General of Water Services) there shall be substituted—

(2) The functions to which subsection (2A) below applies shall be concurrent functions of the Director and the OFT. (2A) This subsection applies to the functions of the OFT under Part 4 of the 2002 Act (other than sections 166 and 171) so far as relating to commercial activities connected with the supply of water or the provision of sewerage services.

• (3) For subsection (4) there shall be substituted—

(4) So far as necessary for the purposes of, or in connection with, subsections (2) and (2A) above, references in Part 4 of the 2002 Act to the OFT (including references in provisions of that Act applied by that Part) shall be construed as including references to the Director (except in sections 166 and 171 of that Act and in any other provision of that Act where the context otherwise requires).

• (4) For subsections (5) and (6) there shall be substituted—

(5) Before the OFT or the Director first exercises in relation to any matter functions which are exercisable concurrently by virtue of subsection (2) above, that person shall consult the other. (6) Neither the OFT nor the Director shall exercise in relation to any matter functions which are exercisable concurrently by virtue of subsection (2) above if functions which are so exercisable have been exercised in relation to that matter by the other.

• (5) In subsection (8)—

• (a) the words from “or paragraph” to “Act 1994” shall cease to have effect; and

• (b) for the words “Part IV or section 86 or 88 of the 1973 Act” there shall be substituted “ Part 4 of the 2002 Act ”.

• (6) For subsection (8A) there shall be substituted—

(8A) Section 117 of the 2002 Act (offences of supplying false or misleading information) as applied by section 180 of that Act shall have effect so far as relating to functions exercisable by the Director by virtue of subsection (2) above as if the references in section 117(1)(a) and (2) to the OFT included references to the Director.

• (7) Subsection (9) shall cease to have effect.

Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1))

20

• (1) Article 46 of the Electricity (Northern Ireland) Order 1992 (application of monopoly provisions etc. to the Director General of Electricity Supply for Northern Ireland) shall be amended as follows.

• (2) For paragraph (2) (monopoly functions to be exercisable concurrently by the Director) there shall be substituted—

(2) The functions to which paragraph (2A) applies shall be concurrent functions of the Director and the Office of Fair Trading. (2A) This paragraph applies to the functions of the Office of Fair Trading under Part 4 of the Enterprise Act 2002 (other than sections 166 and 171) so far as relating to commercial activities connected with the generation, transmission or supply of electricity. (2B) So far as necessary for the purposes of, or in connection with, paragraphs (2) and (2A), references in Part 4 of the Act of 2002 to the Office of Fair Trading (including references in provisions of that Act applied by that Part) shall be construed as including references to the Director (except in sections 166 and 171 of that Act and in any other provision of that Act where the context otherwise requires).

• (3) For paragraph (4) there shall be substituted—

(4) Before the Office of Fair Trading or the Director first exercises in relation to any matter functions which are exercisable concurrently by virtue of paragraph (2), it or he shall consult the other. (4A) Neither the Office of Fair Trading nor the Director shall exercise in relation to any matter functions which are exercisable concurrently by virtue of paragraph (2) if functions which are so exercisable have been exercised in relation to that matter by the other.

• (4) In paragraph (6)—

• (a) for the words “paragraph (2)” there shall be substituted “ paragraph (2A) ”;

• (b) the words from “or paragraph” to “Act 1994” shall cease to have effect; and

• (c) for the words “Part IV or section 86 or 88 of the 1973 Act” there shall be substituted “ Part 4 of the Enterprise Act 2002 ”.

• (5) For paragraph (6A) there shall be substituted—

(6A) Section 117 of the Enterprise Act 2002 (offences of supplying false or misleading information) as applied by section 180 of that Act shall have effect so far as relating to functions exercisable by the Director by virtue of paragraph (2) as if the references in section 117(1)(a) and (2) to the Office of Fair Trading included references to the Director.

• (6) Paragraph (7) shall cease to have effect.

Railways Act 1993 (c. 43)

21

• (1) Section 67 of the Railways Act 1993 (application of monopoly provisions etc. to the Rail Regulator) shall be amended as follows.

• (2) For subsection (2) (monopoly functions to be exercisable concurrently by the Rail Regulator) there shall be substituted—

(2) The functions to which subsection (2A) below applies shall be concurrent functions of the Regulator and the OFT. (2A) This subsection applies to the functions of the OFT under Part 4 of the Enterprise Act 2002 (other than sections 166 and 171) so far as relating to the supply of services relating to railways. (2B) So far as necessary for the purposes of, or in connection with, subsections (2) and (2A) above, references in Part 4 of the Act of 2002 to the OFT (including references in provisions of that Act applied by that Part) shall be construed as including references to the Regulator (except in sections 166 and 171 of that Act and in any other provision of that Act where the context otherwise requires).

• (3) In subsection (3ZA) for the words “subsection (3)” there shall be substituted “ subsections (2A) and (3) ”.

• (4) For subsection (4) there shall be substituted—

(4) Before the OFT or the Regulator first exercises in relation to any matter functions which are exercisable concurrently by virtue of subsection (2) above, that person shall consult the other. (4A) Neither the OFT nor the Regulator shall exercise in relation to any matter functions which are exercisable concurrently by virtue of subsection (2) above if functions which are so exercisable have been exercised in relation to that matter by the other.

• (5) In subsection (7)—

• (a) for the words “on a monopoly reference” there shall be substituted “ under section 136 or 142 of the Enterprise Act 2002 ”;

• (b) the words from “was made” to “that it” shall cease to have effect; and

• (c) for the word “him” there shall be substituted “ the Regulator ”.

• (6) In subsection (8)—

• (a) for the word “(2)” there shall be substituted “ (2A) ”;

• (b) the words from “or paragraph” to “Act 1994” shall cease to have effect; and

• (c) for the words “Part IV or section 86 or 88 of the 1973 Act” there shall be substituted “ Part 4 of the Enterprise Act 2002 ”.

• (7) For subsection (9) there shall be substituted—

(9) Section 117 of the Enterprise Act 2002 (offences of supplying false or misleading information) as applied by section 180 of that Act shall have effect so far as relating to functions exercisable by the Regulator by virtue of subsection (2) above as if the references in section 117(1)(a) and (2) to the OFT included references to the Regulator.

• (8) Subsection (10) shall cease to have effect.

Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2))

22

• (1) Article 23 of the Gas (Northern Ireland) Order 1996 (application of monopoly provisions etc. to the Director General of Gas for Northern Ireland) shall be amended as follows.

• (2) For paragraph (2) (monopoly functions to be exercisable concurrently by the Director) there shall be substituted—

(2) The functions to which paragraph (2A) applies shall be concurrent functions of the Director and the Office of Fair Trading. (2A) This paragraph applies to the functions of the Office of Fair Trading under Part 4 of the Enterprise Act 2002 (other than sections 166 and 171) so far as relating to commercial activities connected with the conveyance, storage or supply of gas. (2B) So far as necessary for the purposes of, or in connection with, paragraphs (2) and (2A), references in Part 4 of the Act of 2002 to the Office of Fair Trading (including references in provisions of that Act applied by that Part) shall be construed as including references to the Director (except in sections 166 and 171 of that Act and in any other provision of that Act where the context otherwise requires).

• (3) For paragraph (4) there shall be substituted—

(4) Before the Office of Fair Trading or the Director first exercises in relation to any matter functions which are exercisable concurrently by virtue of paragraph (2), it or he shall consult the other. (4A) Neither the Office of Fair Trading nor the Director shall exercise in relation to any matter functions which are exercisable concurrently by virtue of paragraph (2) if functions which are so exercisable have been exercised in relation to that matter by the other.

• (4) In paragraph (6) for the words “Part IV or section 86 or 88 of the 1973 Act” there shall be substituted “ Part 4 of the Enterprise Act 2002 ”.

• (5) For paragraph (7) there shall be substituted—

(7) Section 117 of the Enterprise Act 2002 (offences of supplying false or misleading information) as applied by section 180 of that Act shall have effect so far as relating to functions exercisable by the Director by virtue of paragraph (2) as if the references in section 117(1)(a) and (2) to the Office of Fair Trading included references to the Director.

• (6) Paragraph (8) shall cease to have effect.

• (7) In paragraph (9) for the words “mentioned in paragraph (2) or (3)” there shall be substituted “ exercisable by the Director by virtue of paragraph (2) or (3) ”.

Transport Act 2000 (c. 38)

23

• (1) Section 85 of the Transport Act 2000 (interpretation of Chapter V) shall be amended as follows.

• (2) In subsection (1) for paragraph (a) there shall be substituted—

(a) the 2002 Act is the Enterprise Act 2002;

.

• (3) In subsection (3)—

• (a) the words “the 1973 Act or” shall cease to have effect; and

• (b) for the words “Act concerned” there shall be substituted “ 1998 Act ”.

24

• (1) Section 86 of that Act (functions exercisable by the CAA and the Director) shall be amended as follows.

• (2) For subsection (2) there shall be substituted—

(2) This subsection applies to the OFT’s functions under Part 4 of the 2002 Act (other than sections 166 and 171) so far as they relate to the supply of air traffic services.

• (3) In subsection (4)(a) for the words from the beginning to “Act” there shall be substituted “ Part 4 of the 2002 Act (except for sections 166 and 171 but including provisions of that Act applied by that Part) ”.

• (4) In subsection (7)(a) for the words from the beginning to “Act” there shall be substituted “ Part 4 of the 2002 Act ”.

25

In section 87 of that Act (CAA’s 1973 Act functions) for the word “1973”, wherever it appears, there shall be substituted “ 2002 ”.

26

In section 89 of that Act (carrying out functions) for the word “1973”, wherever it appears, there shall be substituted “ 2002 ”.

SCHEDULE 10

Requirements for accepting undertakings and making orders

1

Paragraph 2 applies in relation to—

• (a) any undertaking under section 73 or 82 or paragraph 3 or 9 of Schedule 7 (other than an undertaking under the enactment concerned which varies an undertaking under that enactment but not in any material respect); and

• (b) any order under section 70C, 75, 83 or 84 or paragraph 5, 10 or 11 of Schedule 7 (other than an order under the enactment concerned which is a revoking order of the kind dealt with by paragraphs 6 to 8 below).

2

• (1) Before accepting an undertaking to which this paragraph applies or making an order to which this paragraph applies, the CMA or (as the case may be) the Secretary of State (in this Schedule “the relevant authority”) shall—

• (a) give notice of the proposed undertaking or (as the case may be) order; and

• (b) consider any representations made in accordance with the notice and not withdrawn.

• (2) A notice under sub-paragraph (1) shall state—

• (a) that the relevant authority proposes to accept the undertaking or (as the case may be) make the order;

• (b) the purpose and effect of the undertaking or (as the case may be) order;

• (c) the situation that the undertaking or (as the case may be) order is seeking to deal with;

• (d) any other facts which the relevant authority considers justify the acceptance of the undertaking or (as the case may be) the making of the order;

• (e) a means of gaining access to an accurate version of the proposed undertaking or (as the case may be) order at all reasonable times; and

• (f) the period (not less than 15 days starting with the date of publication of the notice in the case of an undertaking and not less than 30 days starting with that date in the case of an order) within which representations may be made in relation to the proposed undertaking or (as the case may be) order.

• (3) A notice under sub-paragraph (1) shall be given by—

• (a) in the case of a proposed order, serving on any person identified in the order as a person on whom a copy of the order should be served a copy of the notice and a copy of the proposed order; and

• (b) in every case, publishing the notice.

• (4) The relevant authority shall not accept the undertaking with modifications or (as the case may be) make the order with modifications unless the relevant authority—

• (a) gives notice of the proposed modifications; and

• (b) considers any representations made in accordance with the notice and not withdrawn.

• (5) A notice under sub-paragraph (4) shall state—

• (a) the proposed modifications;

• (b) the reasons for them; and

• (c) the period (not less than 7 days starting with the date of the publication of the notice under sub-paragraph (4)) within which representations may be made in relation to the proposed modifications.

• (6) A notice under sub-paragraph (4) shall be given by—

• (a) in the case of a proposed order, serving a copy of the notice on any person identified in the order as a person on whom a copy of the order should be served; and

• (b) in every case, publishing the notice.

3

• (1) If, after giving notice under paragraph 2(1) or (4), the relevant authority decides—

• (a) not to accept the undertaking concerned or (as the case may be) make the order concerned; and

• (b) not to proceed by virtue of paragraph 5;

the relevant authority shall give notice of that decision.

• (2) A notice under sub-paragraph (1) shall be given by—

• (a) in the case of a proposed order, serving a copy of the notice on any person identified in the order as a person on whom a copy of the order should be served; and

• (b) in every case, publishing the notice.

4

As soon as practicable after accepting an undertaking to which paragraph 2 applies or (as the case may be) making an order to which that paragraph applies, the relevant authority shall (except in the case of an order which is a statutory instrument)—

• (a) serve a copy of the undertaking on any person by whom it is given or (as the case may be) serve a copy of the order on any person identified in the order as a person on whom a copy of the order should be served; and

• (b) publish the undertaking or (as the case may be) the order.

5

• (1) The requirements of paragraph 2(4) (and those of paragraph 2(1)) shall not apply if the relevant authority—

• (a) has already given notice under paragraph 2(1) but not paragraph 2(4) in relation to the proposed undertaking or order; and

• (b) considers that the modifications which are now being proposed are not material in any respect.

• (2) The requirements of paragraph 2(4) (and those of paragraph 2(1)) shall not apply if the relevant authority—

• (a) has already given notice under paragraphs 2(1) and (4) in relation to the matter concerned; and

• (b) considers that the further modifications which are now being proposed do not differ in any material respect from the modifications in relation to which notice was last given under paragraph 2(4).

Termination of undertakings and orders

6

Paragraph 7 applies where the relevant authority is proposing to—

• (a) release any undertaking under section 73 or 82 or paragraph 3 or 9 of Schedule 7 (other than in connection with accepting an undertaking under the enactment concerned which varies or supersedes an undertaking under that enactment); or

• (b) revoke any order under section 70C, 75, 83 or 84 or paragraph 5, 10 or 11 of Schedule 7 (other than in connection with making an order under the enactment concerned which varies or supersedes an order under that enactment).

7

• (1) Before releasing an undertaking to which this paragraph applies or (as the case may be) revoking an order to which this paragraph applies, the relevant authority shall—

• (a) give notice of the proposed release or (as the case may be) revocation; and

• (b) consider any representations made in accordance with the notice and not withdrawn.

• (2) A notice under sub-paragraph (1) shall state—

• (a) the fact that a release or (as the case may be) revocation is proposed;

• (b) the reasons for it; and

• (c) the period (not less than 15 days starting with the date of publication of the notice in the case of an undertaking and not less than 30 days starting with that date in the case of an order) within which representations may be made in relation to the proposed release or (as the case may be) revocation.

• (3) If after giving notice under sub-paragraph (1) the relevant authority decides not to proceed with the release or (as the case may be) the revocation, the relevant authority shall give notice of that decision.

• (4) A notice under sub-paragraph (1) or (3) shall be given by—

• (a) serving a copy of the notice on the person who gave the undertaking which is being released or (as the case may be) on any person identified in the order being revoked as a person on whom a copy of the order should be served; and

• (b) publishing the notice.

8

As soon as practicable after releasing the undertaking or making the revoking order, the relevant authority shall (except in the case of an order which is a statutory instrument)—

• (a) serve a copy of the release of the undertaking on the person who gave the undertaking or (as the case may be) serve a copy of the revoking order on any person identified in the order being revoked as a person on whom a copy of that order should be served; and

• (b) publish the release or (as the case may be) the revoking order.

Power to dispense with the requirements of the Schedule

9

The relevant authority may dispense with any or all of the requirements of this Schedule if the relevant authority considers that the relevant authority has special reasons for doing so.

SCHEDULE 11

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8

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SCHEDULE 12

SCHEDULE 13

Part 1 — Directives and Regulations

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3

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4

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8

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9

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Part 2 — Provisions of directives and Regulations

10

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11

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SCHEDULE 14

SCHEDULE 15

SCHEDULE 16

SCHEDULE 17

General

1

In any instrument made before section 248(1) to (3) of this Act comes into force—

• (a) a reference to the making of an administration order shall be treated as including a reference to the appointment of an administrator under paragraph 14 or 22 of Schedule B1 to the Insolvency Act 1986 (c. 45) (inserted by section 248(2) of this Act), and

• (b) a reference to making an application for an administration order by petition shall be treated as including a reference to making an administration application under that Schedule, appointing an administrator under paragraph 14 or 22 of that Schedule or giving notice under paragraph 15 or 26 of that Schedule.

Magistrates' Courts Act 1980 (c. 43)

2

In section 87A(1) of the Magistrates’ Court Act 1980 (fine imposed on company) for “section 9 or 124 of the Insolvency Act 1986” substitute “ section 124 of, or paragraph 12 of Schedule B1 to, the Insolvency Act 1986 ”.

Companies Act 1985 (c. 6)

3

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5

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6

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7

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8

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Insolvency Act 1986 (c. 45)

9

The Insolvency Act 1986 shall be amended as follows.

10

In section 1 (proposal for company voluntary arrangement)—

• (a) in subsection (1) for “(other than one for which an administration order is in force, or which is being wound up)” substitute “ (other than one which is in administration or being wound up) ”, and

• (b) in subsection (3) for paragraph (a) substitute—

(a) where the company is in administration, by the administrator,

.

11

In section 5(3) (approval of company voluntary arrangement)—

• (a) for “an administration order is in force” substitute “ is in administration ”, and

• (b) for “discharge the administration order” substitute “ provide for the appointment of the administrator to cease to have effect ”.

12

In section 6(2)(c) (challenge of decision in relation to company voluntary arrangement) for “an administration order is in force” substitute “ is in administration ”.

13

In section 51 (power to appoint receiver: Scotland) after subsection (2) insert—

(2A) Subsections (1) and (2) are subject to section 72A.

14

At the end of section 100 (creditors’ voluntary winding up of company: appointment of liquidator) add—

(4) The court shall grant an application under subsection (3) made by the holder of a qualifying floating charge in respect of the company’s property (within the meaning of paragraph 14 of Schedule B1) unless the court thinks it right to refuse the application because of the particular circumstances of the case.

15

At the end of section 127 (winding-up: avoidance of property disposition) (which becomes subsection (1)) add—

(2) This section has no effect in respect of anything done by an administrator of a company while a winding-up petition is suspended under paragraph 40 of Schedule B1.

16

After section 129(1) (commencement of winding up) insert—

(1A) Where the court makes a winding-up order by virtue of paragraph 13(1)(e) of Schedule B1, the winding up is deemed to commence on the making of the order.

17

In section 140 (appointment by court of liquidator following administration or voluntary arrangement) for subsection (1) substitute—

(1) Where a winding-up order is made immediately upon the appointment of an administrator ceasing to have effect, the court may appoint as liquidator of the company the person whose appointment as administrator has ceased to have effect.

18

In section 212 (misfeasance of officers)—

• (a) in subsection (1)(b) omit “, administrator”,

• (b) in subsection (2) omit (in each place) “or administrator”, and

• (c) in subsection (4)—

• (i) omit “or administrator”, and

• (ii) for “that person” substitute “ he ”.

19

Section 230(1) (administrator to be qualified insolvency practitioner) shall cease to have effect.

20

In section 231(1) and (2) (appointment to office of two or more persons) omit the word “administrator,”.

21

In section 232 (validity of office-holder’s act) omit the word “administrator,”.

22

In section 233 (utility supplies)—

• (a) for subsection (1)(a) substitute—

(a) the company enters administration,

,

and

• (b) for subsection (4)(a) substitute—

(a) the date on which the company entered administration

.

23

For section 234(1)(a) (getting in the company’s property) substitute—

(a) the company enters administration,

.

24

For section 235(4)(a) (co-operation with office-holder) substitute—

(a) the date on which the company entered administration,

.

25

For section 238(1)(a) (transactions at an undervalue: England and Wales) substitute—

(a) the company enters administration,

.

26

• (1) Section 240 (relevant time for sections 238 and 239) shall be amended as follows.

• (2) For subsection (1)(c) substitute—

(c) in either case, at a time between the making of an administration application in respect of the company and the making of an administration order on that application, and (d) in either case, at a time between the filing with the court of a copy of notice of intention to appoint an administrator under paragraph 14 or 22 of Schedule B1 and the making of an appointment under that paragraph.

• (3) The word “and” after subsection (1)(b) shall cease to have effect.

• (4) For subsection (3)(a), (aa) and (b) substitute—

(a) in a case where section 238 or 239 applies by reason of an administrator of a company being appointed by administration order, the date on which the administration application is made, (b) in a case where section 238 or 239 applies by reason of an administrator of a company being appointed under paragraph 14 or 22 of Schedule B1 following filing with the court of a copy of a notice of intention to appoint under that paragraph, the date on which the copy of the notice is filed, (c) in a case where section 238 or 239 applies by reason of an administrator of a company being appointed otherwise than as mentioned in paragraph (a) or (b), the date on which the appointment takes effect, (d) in a case where section 238 or 239 applies by reason of a company going into liquidation either following conversion of administration into winding up by virtue of Article 37 of the EC Regulation or at the time when the appointment of an administrator ceases to have effect, the date on which the company entered administration (or, if relevant, the date on which the application for the administration order was made or a copy of the notice of intention to appoint was filed), and (e) in a case where section 238 or 239 applies by reason of a company going into liquidation at any other time, the date of the commencement of the winding up.

27

• (1) Section 241 (order under section 238 or 239) shall be amended as follows.

• (2) For subsection (3A) substitute—

(3A) Where section 238 or 239 applies by reason of a company’s entering administration, a person has notice of the relevant proceedings if he has notice that— (a) an administration application has been made, (b) an administration order has been made, (c) a copy of a notice of intention to appoint an administrator under paragraph 14 or 22 of Schedule B1 has been filed, or (d) notice of the appointment of an administrator has been filed under paragraph 18 or 29 of that Schedule.

• (3) For subsection (3B) substitute—

(3B) Where section 238 or 239 applies by reason of a company’s going into liquidation at the time when the appointment of an administrator of the company ceases to have effect, a person has notice of the relevant proceedings if he has notice that— (a) an administration application has been made, (b) an administration order has been made, (c) a copy of a notice of intention to appoint an administrator under paragraph 14 or 22 of Schedule B1 has been filed, (d) notice of the appointment of an administrator has been filed under paragraph 18 or 29 of that Schedule, or (e) the company has gone into liquidation.

28

• (1) Section 242 (gratuitous alienations: Scotland) shall be amended as follows.

• (2) In subsection (1)(b) for “an administration order is in force in relation to a company” substitute “ a company enters administration ”.

• (3) In subsection (3)(a)(ii) for “the administration order is made” substitute “ the company enters administration ”.

29

• (1) Section 243 (unfair preferences: Scotland) shall be amended as follows.

• (2) In subsection (1) for “the making of an administration order in relation to the company” substitute “ the company enters administration ”.

• (3) In subsection (4)(b) for “in the case of an administration order” substitute “ where the company has entered administration ”.

30

In section 244(2) (extortionate credit transaction) for “the day on which the administration order was made or (as the case may be) the company went into liquidation” substitute “ the day on which the company entered administration or went into liquidation ”.

31

• (1) Section 245 (avoidance of floating charge) shall be amended as follows.

• (2) The word “or” after subsection (3)(b) shall cease to have effect.

• (3) For subsection (3)(c) substitute—

(c) in either case, at a time between the making of an administration application in respect of the company and the making of an administration order on that application, or (d) in either case, at a time between the filing with the court of a copy of notice of intention to appoint an administrator under paragraph 14 or 22 of Schedule B1 and the making of an appointment under that paragraph.

• (4) For subsection (5)(a) and (b) substitute—

(a) in a case where this section applies by reason of an administrator of a company being appointed by administration order, the date on which the administration application is made, (b) in a case where this section applies by reason of an administrator of a company being appointed under paragraph 14 or 22 of Schedule B1 following filing with the court of a copy of notice of intention to appoint under that paragraph, the date on which the copy of the notice is filed, (c) in a case where this section applies by reason of an administrator of a company being appointed otherwise than as mentioned in paragraph (a) or (b), the date on which the appointment takes effect, and (d) in a case where this section applies by reason of a company going into liquidation, the date of the commencement of the winding up.

32

For section 246(1)(a) (unenforceability of lien on records) substitute—

(a) the company enters administration,

.

33

• (1) Section 247 (meaning of “insolvency” and “go into liquidation”) shall be amended as follows.

• (2) In subsection (1) for “the making of an administration order or the appointment of an administrative receiver” substitute “ or the appointment of an administrator or administrative receiver ”.

• (3) For subsection (3) substitute—

(3) The reference to a resolution for voluntary winding up in subsection (2) includes a reference to a resolution which is deemed to occur by virtue of— (a) paragraph 83(6)(b) of Schedule B1, or (b) an order made following conversion of administration or a voluntary arrangement into winding up by virtue of Article 37 of the EC Regulation.

34

• (1) Section 387 (preferential debts: “the relevant date”) shall be amended as follows.

• (2) In subsection (2) for paragraphs (a) and (b) substitute—

(a) if the company is in administration, the date on which it entered administration, and (b) if the company is not in administration, the date on which the voluntary arrangement takes effect.

• (3) In subsection (3)—

• (a) in paragraphs (a), (aa) and (ab) for “the date of the making of the administration order” substitute “ the date on which the company entered administration ”,

• (b) after paragraph (b) insert—

(ba) if the case does not fall within paragraph (a), (aa), (ab) or (b) and the company is being wound up following administration pursuant to paragraph 83 of Schedule B1, the relevant date is the date on which the company entered administration;

,

and

• (c) in paragraph (c) for “paragraph (a), (aa), (ab) or (b)” substitute “ paragraph (a), (aa), (ab), (b) or (ba) ”.

• (4) After subsection (3) insert—

(3A) In relation to a company which is in administration (and to which no other provision of this section applies) the relevant date is the date on which the company enters administration.

35

In section 422 (power to apply first Group of Parts to banks, &c.) for subsection (1) substitute—

(1) The Secretary of State may by order made with the concurrence of the Treasury and after consultation with the Financial Services Authority provide that specified provisions in the first Group of Parts shall apply with specified modifications in relation to any person who— (a) has a liability in respect of a deposit which he accepted in accordance with the Banking Act 1979 (c. 37) or 1987 (c. 22), but (b) does not have permission under Part IV of the Financial Services and Markets Act 2000 (c. 8) (regulated activities) to accept deposits. (1A) Subsection (1)(b) shall be construed in accordance with— (a) section 22 of the Financial Services and Markets Act 2000 (classes of regulated activity and categories of investment), (b) any relevant order under that section, and (c) Schedule 2 to that Act (regulated activities).

36

In section 424(1)(a) (application for order in relation to transaction defrauding creditor) for “in relation to which an administration order is in force” substitute “ is in administration ”.

37

• (1) Schedule A1 (moratorium where directors propose voluntary arrangement) shall be amended as follows.

• (2) In paragraph 4(1) (exclusion from eligibility for moratorium)—

• (a) for paragraph (a) substitute—

(a) the company is in administration,

,

and

• (b) after paragraph (f) (and before the word “or”) insert—

(fa) an administrator appointed under paragraph 22 of Schedule B1 has held office in the period of 12 months ending with the date of filing,

.

• (3) In paragraph 12(1) (effect of moratorium on creditor) for paragraph (d) substitute—

(d) no administration application may be made in respect of the company, (da) no administrator of the company may be appointed under paragraph 14 or 22 of Schedule B1,

.

• (4) In paragraph 40 (challenge of directors’ actions during moratorium) for sub-paragraph (7) substitute—

(7) Sub-paragraph (8) applies where— (a) the appointment of an administrator has effect in relation to the company and the appointment took effect before the moratorium came into force, or (b) the company is being wound up in pursuance of a petition presented before the moratorium came into force. (8) No application for an order under this paragraph may be made by a creditor or member of the company; but such an application may be made instead by the administrator or (as the case may be) the liquidator.

38

• (1) Schedule 8 (scope of insolvency rules) shall be amended as follows.

• (2) At the end of paragraph 2 (which becomes sub-paragraph (1)) add—

(2) Rules made by virtue of this paragraph about the consequence of failure to comply with practice or procedure may, in particular, include provision about the termination of administration.

• (3) In paragraph 10 (provision as to committees) for “section 26, 49, 68, 101, 141 or 142 of this Act” substitute “ section 49, 68, 101, 141 or 142 of, or paragraph 57 of Schedule B1 to, this Act ”.

• (4) After paragraph 14 insert—

(14A) Provision about the application of section 176A of this Act which may include, in particular— (a) provision enabling a receiver to institute winding up proceedings; (b) provision requiring a receiver to institute winding up proceedings.

• (5) After paragraph 14A (inserted by sub-paragraph (4) above) insert—

(14B) Provision which— (a) applies in relation to administration, with or without modifications, a provision of Parts IV to VII of this Act, or (b) serves a purpose in relation to administration similar to a purpose that may be served by the rules in relation to winding up by virtue of a provision of this Schedule.

• (6) In paragraph 29 (general provision) for “section 22, 47, 66, 131, 143(2) or 235 of this Act” substitute “ section 47, 66, 131, 143(2) or 235 of, or paragraph 47 of Schedule B1 to, this Act ”.

39

• (1) Schedule 10 (punishment of offences) shall be amended as follows.

• (2) After the entries for Schedule A1 insert—