Corporate Insolvency and Governance Act 2020

(247A) (1) The Welsh Ministers may by regulations made by statutory instrument provide for Part A1 of the Insolvency Act 1986 to apply (with such modifications as may be specified in the regulations) in relation to a CIO that is a registered social landlord. (2) The regulations may make provision in connection with the interaction between Part A1 of the Insolvency Act 1986 as applied by the regulations and any other insolvency procedure in relation to a CIO that is a registered social landlord. (3) The regulations may make— (a) different provision for different purposes, and (b) such supplemental, incidental, consequential, transitory or transitional provision or savings as the Welsh Ministers consider appropriate. (4) The power to make regulations under this section includes power to amend, disapply, or modify (in ways specified in the regulations) any provision made by legislation. (5) A statutory instrument containing the regulations may not be made unless a draft of the statutory instrument containing them has been laid before and approved by a resolution of Senedd Cymru. (6) Before making any regulations under this section the Welsh Ministers must consult such persons or bodies of persons as the Welsh Ministers consider appropriate. (7) In this section— - “insolvency procedure” includes the provision made by sections 39 to 50 of the Housing Act 1996; - “legislation” means— 1. an Act of Parliament or an Act or Measure of Senedd Cymru; or 2. subordinate legislation (within the meaning of the Interpretation Act 1978) made under such an Act or Measure; - “registered social landlord” means registered as a social landlord under Part 1 of the Housing Act 1996.

The Investment Bank Special Administration Regulations 2011

46

The Investment Bank Special Administration Regulations 2011 (S.I. 2011/245) are amended as follows.

47

In regulation 21 (dissolution or voluntary arrangement), in paragraph (5A)—

• (a) omit “and Schedule A1”;

• (b) for the first “9” substitute “ 8 ”.

48

In Schedule 2 (bank administration), in paragraph 16(3)(ba)—

• (a) omit “and Schedule A1”;

• (b) for the first “9” substitute “ 8 ”.

The Charitable Incorporated Organisations (Insolvency and Dissolution) Regulations 2012

49

• (1) Paragraph 1 of Schedule 1 to the Charitable Incorporated Organisations (Insolvency and Dissolution) Regulations 2012 (S.I 2012/3013) (application of the Insolvency Act 1986) is amended as follows.

• (2) In sub-paragraph (1), at the beginning insert “ Subject to sub-paragraph (2A) ”.

• (3) In sub-paragraph (2)(a), for “Parts 1” substitute “ Parts A1 ”.

• (4) After sub-paragraph (2), insert—

(2A) Part A1 of the 1986 Act does not apply in relation to a CIO that is— (a) a private registered provider of social housing; (b) registered as a social landlord under Part 1 of the Housing Act 1996.

Co-operative and Community Benefit Societies Act 2014

50

The Co-operative and Community Benefit Societies Act 2014 is amended as follows.

51

In section 106 (appointment of inspectors and calling of special meetings), omit subsection (2).

52

• (1) Section 118 (power to apply provisions about company arrangements and administration) is amended as follows.

• (2) At the end of the heading insert “ etc ”.

• (3) In subsection (1), after “by order” insert

— (a) provide for Part A1 of the Insolvency Act 1986 (moratorium) to apply (with or without modifications) in relation to registered societies; (b)

.

• (4) After subsection (3), insert—

(3A) The order may not make any provision that could be made under subsection (3B) or (3C). (3B) The Welsh Ministers may by regulations made by statutory instrument make provision under the law of England and Wales for Part A1 of the Insolvency Act 1986 to apply (with or without modifications) in relation to a society that is registered as a social landlord under Part 1 of the Housing Act 1996. (3C) The Scottish Ministers may by regulations make provision under the law of Scotland for Part A1 of the Insolvency Act 1986 to apply (with or without modifications) in relation to a society that is registered as a social landlord under Part 2 of the Housing (Scotland) Act 2010 (asp 17).

• (5) In subsection (4), for “The order” substitute “ An order or regulations under this section ”.

• (6) After subsection (5) insert—

(5A) A statutory instrument containing regulations under subsection (3B) is subject to annulment in pursuance of a resolution of Senedd Cymru. (5B) Regulations made by the Scottish Ministers under subsection (3C) are subject to the negative procedure (see section 28 of the Interpretation and Legislative Reform (Scotland) Act 2010 (asp 10)).

53

In section 147 (regulations and orders), in subsection (3), for “97 or 118” substitute “ or 97, or an order under section 118, ”.

The Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) Order 2014 (S.I. 2014/229)

54

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

The International Interests in Aircraft Equipment (Cape Town Convention) Regulations 2015

55

• (1) Regulation 37 of the International Interests in Aircraft Equipment (Cape Town Convention) Regulations 2015 (S.I. 2015/912) is amended as follows.

• (2) After paragraph (3) insert—

(3A) Where the insolvency-related event is the coming into force of a moratorium for a company under Part A1 of the Insolvency Act 1986, references in this regulation to the “insolvency office holder” are to the company.

• (3) In paragraph (12)—

• (a) in sub-paragraph (a) omit “Part 1 of the Insolvency Act 1986 (in the case of company voluntary arrangements) and”;

• (b) omit sub-paragraph (i).

• (4) After paragraph (12) insert—

(12A) Where this regulation applies by virtue of a moratorium for a company coming into force under Part A1 of the Insolvency Act 1986— (a) the provisions of this regulation are in addition to the provisions of Part A1 of that Act; (b) the notices under section A8 of that Act must include a statement that this regulation applies, together with a statement of the effect of the application of this regulation; (c) section A21 of that Act (restrictions on enforcement) does not apply in relation to the aircraft object after the end of the waiting period under this regulation; (d) sections A29 to A32 of that Act (provisions about disposal of property) do not apply to the aircraft object; (e) the end of the waiting period under this regulation is without prejudice to the application of the provisions of Part A1 of that Act in respect of assets to which these Regulations do not apply.

SCHEDULE 4

PART 1 — “Relevant period” and powers to turn off temporary provision

“Relevant period”

1

In this Schedule “relevant period” means the period which—

• (a) begins with the day on which this Schedule comes into force, and

• (b) ends with 30 September 2021.

Power to turn off particular provisions of Part 2 of this Schedule early

2

• (1) The Secretary of State may by regulations made by statutory instrument provide for any provision made by Part 2 of this Schedule to cease to have effect before the end of the relevant period.

• (2) The regulations may include transitional provision or savings.

• (3) A statutory instrument containing regulations under sub-paragraph (1) is subject to annulment in pursuance of a resolution of either House of Parliament.

Power to turn off provisions of Parts 3 and 4 of this Schedule early etc

3

Rules under section 411 of the Insolvency Act 1986 may provide for any provision made by paragraphs 13 to 51 or 53 to 90 to cease to have effect before the end of the relevant period.

4

Rules under section 411 of the Insolvency Act 1986 may make transitional provision or savings in connection with any provision made by paragraphs 13 to 51 or 53 to 90 ceasing to have effect (whether by virtue of paragraph 3 or 12).

PART 2 — Modifications to primary legislation

“Eligible” company: additional exclusion

5

During the relevant period, a company is not eligible for the purposes of section A3, A4 or A5 of the Insolvency Act 1986 if the company—

• (a) has permission under Part 4A of the Financial Services and Markets Act 2000 to carry on a regulated activity within the meaning of that Act, and

• (b) is not subject to a requirement imposed under that Act to refrain from holding money for clients.

Relaxation of conditions for obtaining moratorium etc

6

• (1) For the purposes of obtaining a moratorium under section A3 of the Insolvency Act 1986 during the relevant period—

• (a) section A3 of that Act has effect as if subsection (1)(a) were omitted;

• (b) section A6(1)(e) of that Act has effect as if at the end there were inserted “or would do so if it were not for any worsening of the financial position of the company for reasons relating to coronavirus”;

• (c) Schedule ZA1 to that Act has effect as if paragraph 2(1)(b) and (2)(b) were omitted.

• (2) During the relevant period, only an overseas company may obtain a moratorium under section A4 of the Insolvency Act 1986.

7

In relation to an application for a moratorium made under section A4 or A5 of the Insolvency Act 1986 during the relevant period—

• (a) section A6(1)(e) of that Act has effect as if at the end there were inserted “or would do so if it were not for any worsening of the financial position of the company for reasons relating to coronavirus”;

• (b) Schedule ZA1 to that Act has effect as if paragraph 2(1)(b) and (2)(b) were omitted.

Relaxation of conditions for extending moratorium obtained during relevant period

8

• (1) This paragraph applies in relation to a moratorium that comes into force during the relevant period.

• (2) For the purposes of extending the moratorium under section A10 or A11 of the Insolvency Act 1986, subsection (1)(d) of that section has effect as if at the end there were inserted “or would do so if it were not for any worsening of the financial position of the company for reasons relating to coronavirus”.

• (3) In relation to an application under section A13 of the Insolvency Act 1986 that the moratorium be extended, subsection (2)(d) of that section has effect as if at the end there were inserted “or would do so if it were not for any worsening of the financial position of the company for reasons relating to coronavirus”.

Monitoring of moratorium obtained during relevant period

9

In relation to a moratorium that comes into force during the relevant period, section A35(1) of the Insolvency Act 1986 has effect as if for the words from “it remains likely” to the end there were substituted

— (a) it is likely that the moratorium will result in the rescue of the company as a going concern, or (b) that, if one were to disregard any worsening of the financial position of the company for reasons relating to coronavirus, it is likely that the moratorium would result in the rescue of the company as a going concern.

Termination of moratorium obtained during relevant period

10

In relation to a moratorium that comes into force during the relevant period, section A38(1) of the Insolvency Act 1986 has effect as if for paragraph (a) there were substituted—

(a) the monitor thinks— (i) that the moratorium is not likely to result in the rescue of the company as a going concern, and (ii) that, even if one were to disregard any worsening of the financial position of the company for reasons relating to coronavirus, the moratorium would not be likely to result in the rescue of the company as a going concern,

.

“Coronavirus”

11

In the modifications made by this Part of this Schedule “coronavirus” means severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2).

PART 3 — Temporary rules: England and Wales

Introductory

12

Paragraphs 13 to 51 cease to have effect at the end of the relevant period, subject to paragraph 3.

Definition of “the court”

13

Section A54(1) of the Insolvency Act 1986 has effect as if for the definition of “the court” there were substituted—

“the court”, in relation to a company, means a court having jurisdiction to wind up the company;

.

Content of documents relating to the obtaining or extending of a moratorium: general

14

A notice or statement under section A6(1), A8(2), A10(1), A11(1) or A13(2) of the Insolvency Act 1986 must state—

• (a) the provision under which it is given or made,

• (b) the nature of the notice or statement,

• (c) the date of the notice or statement, and

• (d) the identification details for the company to which it relates.

Authentication of documents relating to obtaining or extending moratorium: general

15

• (1) A notice or statement under section A6(1), A10(1), A11(1) or A13(2) of the Insolvency Act 1986 must be authenticated by or on behalf of the person giving the notice or making the statement.

• (2) A notice under section A8(2)(a) of the Insolvency Act 1986 must be authenticated by the monitor.

• (3) Rule 1.5 of the England and Wales Insolvency Rules applies for the purposes of authentication under this paragraph.

Notice that directors wish to obtain a moratorium

16

A notice under section A6(1)(a) of the Insolvency Act 1986 must state—

• (a) the company's address for service, and

• (b) the court (and where applicable, the division or district registry of that court) or hearing centre in which the documents are to be filed under section A3 or the application under section A4 or A5 is to be made.

Proposed monitor’s statement and consent to act

17

• (1) A statement under section A6(1)(b) of the Insolvency Act 1986 must be headed “Proposed monitor's statement and consent to act” and must contain the following—

• (a) a certificate that the proposed monitor is qualified to act as an insolvency practitioner in relation to the company,

• (b) the proposed monitor's IP number,

• (c) the name of the relevant recognised professional body which is the source of the proposed monitor's authorisation to act in relation to the company, and

• (d) a statement that the proposed monitor consents to act as monitor in relation to the company.

• (2) In this paragraph “IP number” means the number assigned to an office-holder as an insolvency practitioner by the Secretary of State.

Timing of statements for obtaining moratorium

18

Each statement under section A6(1)(b) to (e) of the Insolvency Act 1986 must be made within the period of 5 days ending with the day on which the documents under section A6(1)(a) to (e) are filed with the court (or, if the documents are filed on different days, the last of those days).

Notice by monitor where moratorium comes into force

19

A notice under section A8(2) of the Insolvency Act 1986 must—

• (a) state that it is given by the monitor acting in that capacity, and

• (b) state the name and contact details of the monitor.

Notice that directors wish to extend a moratorium

20

A notice under section A10(1)(a) or A11(1)(a) of the Insolvency Act 1986 must state—

• (a) the company's address for service, and

• (b) the court (and where applicable, the division or district registry of that court) or hearing centre in which the notice is to be filed.

Extension under section A10 or A11 of the Insolvency Act 1986: notices and statements

21

A statement by the monitor under section A10(1)(d) or A11(1)(d) of the Insolvency Act 1986 must contain contact details of the monitor.

Timing of statements for extension under section A10 or A11

22

Each statement under section A10(1)(b) to (d) or A11(1)(b) to (e) of the Insolvency Act 1986 must be made within the period of 3 days ending with the day on which the documents under section A10(1)(a) to (d) or A11(1)(a) to (e) are filed with the court (or, if the documents are filed on different days, the last of those days).

Obtaining creditor consent: qualifying decision procedure

23

• (1) The following apply, so far as relevant, for the purposes of a decision to consent to a revised end date for a moratorium under section A12 of the Insolvency Act 1986—

• (a) Part 15 of the England and Wales Insolvency Rules (decision making), apart from rule 15.8(3)(f) and (g);

• (b) Part 16 of the England and Wales Insolvency Rules (proxies), apart from rule 16.7.

• (2) In its application by virtue of sub-paragraph (1), Part 15 has effect subject to the modifications set out in paragraphs 24 to 28.

24

Rule 15.11 of the England and Wales Insolvency Rules (notice of decision procedures etc) has effect as if, before the first entry in the table, there were inserted—

moratorium	decision of pre-moratorium creditors under section A12 of the Act	the pre-moratorium creditors	5 days

.

25

Rule 15.28 of the England and Wales Insolvency Rules (creditors' voting rights) has effect as if, before paragraph (1), there were inserted—

(A1) A pre-moratorium creditor is entitled to vote in a decision procedure under section A12 of the Act only if— (a) the creditor has delivered to the convener a proof of the debt claimed in accordance with paragraph (3) including any calculation for the purposes of rule 15.31 or 15.32, and (b) the proof was received by the convener— (i) not later than the decision date, or in the case of a meeting, 4pm on the business day before the meeting, or (ii) in the case of a meeting, later than the time given in sub-paragraph (i) where the chair is content to accept the proof, and (c) the proof has been admitted for the purposes of entitlement to vote.

26

Rule 15.31 of the England and Wales Insolvency Rules (calculation of voting rights) has effect as if—

• (a) before paragraph (1) there were inserted—

(A1) In relation to a decision to consent to a revised end date for a moratorium under section A12 of the Act votes are calculated according to the amount of each creditor's claim at the decision date.

;

• (b) after paragraph (2) there were inserted—

(2A) But in relation to a decision to consent to a revised end date for a moratorium under section A12 of the Act, a debt of an unliquidated or unascertained amount is to be valued at £1 for the purposes of voting unless the convener or chair or an appointed person decides to put a higher value on it.

;

• (c) in paragraph (6), after sub-paragraph (b) there were inserted—

(c) where the decision relates to whether to consent to a revised end date for a moratorium under section A12 of the Act.

27

Rule 15.32 of the England and Wales Insolvency Rules (calculation of voting rights: special cases) has effect as if, before paragraph (1), there were inserted—

(A1) In relation to a decision to consent to a revised end date for a moratorium under section A12 of the Act, a pre-moratorium creditor under a hire-purchase agreement is entitled to vote in respect of the amount of the debt due and payable by the company at the decision date. (B1) In calculating the amount of any debt for the purpose of paragraph (A1), no account is to be taken of any amount attributable to the exercise of any right under the relevant agreement so far as the right has become exercisable solely by virtue of a moratorium for the company coming into force.

28

Rule 15.34 of the England and Wales Insolvency Rules (requisite majorities) has effect as if, before paragraph (1), there were inserted—

(A1) Subject to paragraph (B1), a decision to consent to a revised end date for a moratorium under section A12 of the Act is made if, of those voting— (a) a majority (in value) of the pre-moratorium creditors who are secured creditors vote in favour of the proposed decision, and (b) a majority (in value) of the pre-moratorium creditors who are unsecured creditors vote in favour of the proposed decision. (B1) But a decision to consent to a revised end date for a moratorium under section A12 of the Act is not made if, of those voting either— (a) a majority of the pre-moratorium creditors who are unconnected secured creditors vote against the proposed end date, or (b) a majority of the pre-moratorium creditors who are unconnected unsecured creditors vote against the proposed end date. (C1) For the purposes of paragraph (B1)— (a) a creditor is unconnected unless the convener or chair decides that the creditor is connected, and (b) the total value of the unconnected creditors is the total value of those unconnected creditors whose claims have been admitted for voting.

Content of application to the court for extension of moratorium

29

• (1) An application by the directors of a company for the extension of a moratorium under section A13 of the Insolvency Act 1986 must state—

• (a) that it is made under that section,

• (b) the length of the extension sought,

• (c) identification details for the company to which the application relates,

• (d) the company's address for service, and

• (e) the court (and where applicable, the division or district registry of that court) or hearing centre in which the application is made.

• (2) The application must be authenticated by or on behalf of the directors.

• (3) Rule 1.5 of the England and Wales Insolvency Rules applies for the purposes of authentication under sub-paragraph (2).

Timing of statements accompanying application to court for extension of moratorium

30

A statement under section A13(2) must be made within the period of 3 days ending with the day on which the application under that section is made.

Notices about change in end of moratorium

31

• (1) A notice under section A17(1) of the Insolvency Act 1986 must be given within the period of 5 days beginning with the day on which the duty to give the notice arises.

• (2) The notice must state—

• (a) the name of the company to which it relates, and

• (b) the provision by virtue of which the moratorium was extended or came to an end.

32

• (1) A notice under section A17(2) or (3) of the Insolvency Act 1986 must be given within the period of 5 days beginning with the day on which the duty to give the notice arises.

• (2) The notice must state—

• (a) the provision under which it is given,

• (b) the nature of the notice,

• (c) the date of the notice,

• (d) that it is given by the monitor acting in that capacity,

• (e) the name and contact details of the monitor, and

• (f) the identification details for the company to which it relates.

• (3) A notice under section A17(2) or (3) of the Insolvency Act 1986 that is given to the registrar of companies must be authenticated by or on behalf of the monitor.

• (4) Rule 1.5 of the England and Wales Insolvency Rules applies for the purposes of authentication under sub-paragraph (3).

33

Where a moratorium comes to an end under section A16 of the Insolvency Act 1986 because the company has entered into a relevant insolvency procedure within the meaning of that section, the notices under section A17(1) and (2) must state—

• (a) the date on which the company entered into the relevant insolvency procedure, and

• (b) the name and contact details of the supervisor of the voluntary arrangement, the administrator or the liquidator.

34

• (1) A notice under section A17(4) of the Insolvency Act 1986 must be given within the period of 3 business days beginning with the day on which the notice under section A38(1) of that Act is filed with the court.

• (2) The notice under section A17(4) of that Act must be accompanied by the notice that the monitor has filed with the court under section A38(1) of that Act.

Notification by directors of insolvency proceedings etc

35

• (1) A notice under section A24(1) of the Insolvency Act 1986 must be given before the period of 3 days ending with the day on which the step mentioned there is taken.

• (2) A notice under section A24(2) of the Insolvency Act 1986 must be given within the period of 3 days beginning with the day on which the duty to give the notice arises.

Notice of termination of moratorium

36

• (1) A notice under section A38(1) of the Insolvency Act 1986 must be filed with the court as soon as practicable after the duty in that subsection arises.

• (2) The notice must state—

• (a) the provision under which it is given,

• (b) the nature of the notice,

• (c) the date of the notice,

• (d) the name and contact details of the monitor,

• (e) the identification details for the company to which it relates,

• (f) the grounds on which the moratorium is being terminated,

• (g) the monitor's reasons for concluding that those grounds are made out,

• (h) the date on which the monitor concluded that those grounds were made out, and

• (i) the court (and where applicable, the division or district registry of that court) or hearing centre in which the notice is to be filed.

• (3) The notice must be authenticated by or on behalf of the monitor.

• (4) Rule 1.5 of the England and Wales Insolvency Rules applies for the purposes of authentication under sub-paragraph (3).

Termination of moratorium under section A38(1)(d) of the Insolvency Act 1986

37

For the purposes of deciding whether to bring a moratorium to an end under section A38(1)(d) of the Insolvency Act 1986 the monitor must disregard—

• (a) any debts that the monitor has reasonable grounds for thinking are likely to be paid within 5 days of the decision, and

• (b) any debts in respect of which the creditor has agreed to defer payment until a time that is later than the decision.

Replacement of monitor or additional monitor: statement and consent to act

38

• (1) A statement under section A39(4) of the Insolvency Act 1986 must be headed “Proposed monitor's statement and consent to act” and must contain the following—

• (a) a certificate that the proposed monitor is qualified to act as an insolvency practitioner in relation to the company,

• (b) the proposed monitor's IP number,

• (c) the name of the relevant recognised professional body which is the source of the proposed monitor's authorisation to act in relation to the company, and

• (d) a statement that the proposed monitor consents to act as monitor in relation to the company.

• (2) The statement must be made within the period of 5 days ending with the day on which it is filed with the court.

• (3) In this paragraph “IP number” means the number assigned to an office-holder as an insolvency practitioner by the Secretary of State.

Replacement of monitor or additional monitor: notification

39

• (1) A notice under section A39(8) of the Insolvency Act 1986 must state—

• (a) the provision under which it is given,

• (b) the nature of the notice,

• (c) the date of the notice,

• (d) the identification details for the company to which it relates,

• (e) that it is given by the monitor acting in that capacity, and

• (f) the name and contact details of the monitor.

• (2) The notice must be authenticated by the monitor.

• (3) Rule 1.5 of the England and Wales Insolvency Rules applies for the purposes of authentication under this paragraph.

Challenge to monitor’s remuneration

40

• (1) An administrator or liquidator of a company may apply to the court on the ground that remuneration charged by the monitor in relation to a prior moratorium for the company under Part A1 of the Insolvency Act 1986 was excessive.

• (2) An application under this paragraph may not be made after the end of the period of 2 years beginning with the day after the moratorium ends.

• (3) On an application under this paragraph the court may—

• (a) dismiss the application,

• (b) order the monitor to repay some or all of the remuneration, or

• (c) make such other order as it thinks fit.

• (4) The costs of an application under this paragraph are, unless the court orders otherwise, to be paid as an expense of the administration or liquidation.

Challenge to directors’ actions: qualifying decision procedure

41

Where the court makes an order by virtue of section A44(4)(c) of the Insolvency Act 1986 requiring a decision of a company's creditors, the following provisions of the England and Wales Insolvency Rules apply for the purposes of that decision to the extent set out in the court's order and subject to any modifications set out in the court's order—

• (a) Part 15 (decision making);

• (b) Part 16 (proxies).

Priority of moratorium debts etc in subsequent winding up

42

• (1) Where section 174A of the Insolvency Act 1986 applies, the moratorium debts and pre-moratorium debts mentioned in subsection (2)(b) of that section are payable in the following order of priority—

• (a) amounts payable in respect of goods or services supplied during the moratorium under a contract where, but for section 233B(3) or (4) of that Act, the supplier would not have had to make that supply;

• (b) wages or salary arising under a contract of employment;

• (c) other debts or other liabilities apart from the monitor's remuneration or expenses;

• (d) the monitor's remuneration or expenses.

• (2) In this paragraph “wages or salary” has the same meaning as in section A18 of the Insolvency Act 1986.

Priority of moratorium debts etc in subsequent administration

43

• (1) Where paragraph 64A(1) of Schedule B1 to the Insolvency Act 1986 applies, the moratorium debts and pre-moratorium debts mentioned in paragraph 64A(2) of that Schedule are payable in the following order of priority—

• (a) amounts payable in respect of goods or services supplied during the moratorium under a contract where, but for section 233B(3) or (4) of that Act, the supplier would not have had to make that supply;

• (b) wages or salary arising under a contract of employment;

• (c) other debts or other liabilities apart from the monitor's remuneration or expenses;

• (d) the monitor's remuneration or expenses.

• (2) In this paragraph “wages or salary” has the same meaning as in section A18 of the Insolvency Act 1986.

Prescribed format of documents

44

Rule 1.4 of the England and Wales Insolvency Rules (requirement for writing and form of documents) applies for the purposes of Part A1 of the Insolvency Act 1986.

45

• (1) The following provisions of the England and Wales Insolvency Rules apply, so far as relevant, to any requirement imposed by a provision of this Part of this Schedule—

• rule 1.8 (prescribed format of documents), and

• rule 1.9(1) (variations from prescribed contents).

• (2) In their application by virtue of sub-paragraph (1), a reference in rule 1.8 or 1.9(1) to the requirements of a rule is to be read as a reference to the requirements of the provision of this Part of this Schedule.

Delivery of documents

46

The following provisions of Chapter 9 of Part 1 of the England and Wales Insolvency Rules apply for the purposes of proceedings under Part A1 of the Insolvency Act 1986 as if rule 1.36(1) included a reference to such proceedings—

• rule 1.36(2) (delivery to registrar of companies);

• rule 1.40 (delivery of documents to authorised recipients);

• rule 1.41 (delivery of documents to joint office-holders);

• rule 1.42 (postal delivery of documents);

• rule 1.43 (delivery by document exchange);

• rule 1.44 (personal delivery of documents);

• rule 1.45 (electronic delivery of documents).

Applications to court

47

• (1) The provisions of the England and Wales Insolvency Rules specified in the Table apply, so far as relevant, for the purposes of proceedings under—

• (a) Part A1 of the Insolvency Act 1986;

• (b) this Part of this Schedule.

• (2) In their application by virtue of sub-paragraph (1), the provisions listed in the Table have effect with—

• (a) the modification set out in sub-paragraph (3),

• (b) the modifications specified in the Table, and

• (c) any other necessary modifications.

• (3) The modification is that any reference to Part 1 of the Insolvency Act 1986 includes a reference to Part A1 of that Act and this Part of this Schedule.

• (4) This is the Table referred to in sub-paragraphs (1) and (2)—

Insolvency Rules	Topic	Modifications
Rule 1.35	Standard contents and authentication of applications
Rules 12.1 and 12.2	Court rules and practice to apply etc
Rule 12.3 and Schedule 6	Commencement of proceedings
Rules 12.7 to 12.11 and 12.13	Making applications to court: general	Rule 12.9 has effect as if, in relation to a regulated company (within the meaning of section A49 of the Insolvency Act 1986), it also required the application to be served on the appropriate regulator (within the meaning of that section).
Rules 12.27 to 12.29	Obtaining information and evidence	Rule 12.29(3) has effect as if it included a reference to the monitor in relation to a moratorium.
Rules 12.30, 12.31, 12.33 and 12.35 to 12.38	Transfer of proceedings	(a) Rule 12.36(2) has effect as if the list of office-holders included the monitor in relation to a moratorium.
Rules 12.30, 12.31, 12.33 and 12.35 to 12.38	Transfer of proceedings	(b) Rule 12.37(2) and (3) have effect as if the list of provisions included section A39 of the Insolvency Act 1986.
Rules 12.39 and 12.40	The court file
Rules 12.41, 12.42(5), 12.47, 12.48 and 12.50	Costs	Rule 12.48(2) has effect as if it required the applicant to serve a sealed copy of the application on the monitor and the company to which the moratorium relates.
Rule 12.51	Enforcement of court orders
Rules 12.58, 12.59 and 12.61 and Schedule 10	Appeals
Rules 12.63 to 12.65	Court orders, formal defects and shorthand writers
Schedule 4, paragraphs 1, 4, 5 and 6		These paragraphs of Schedule 4 apply only for the purposes of the rules applied by this Table.

Identification details for a company

48

• (1) Where a provision of this Part of this Schedule requires a document to contain identification details for a company that is registered under the Companies Act 2006 in England and Wales, the following information must be given—

• (a) the company's registered name;

• (b) its registered number;

• (2) Where a provision of this Part of this Schedule requires a document to contain identification details for a company that has registered particulars under section 1046(1) of the Companies Act 2006 (registered overseas companies), the following information must be given—

• (a) the name registered by the company under section 1047 of that Act,

• (b) the number under which it is registered, and

• (c) the country or territory in which it is incorporated.

• (3) Where a provision of this Part of this Schedule requires a document to contain identification details for an unregistered company that does not come within sub-paragraph (2) the following information must be given—

• (a) the company's name, and

• (b) the postal address of any principal place of business.

Contact details of a monitor or other office-holder

49

Where a provision of this Part of this Schedule requires a document to contain contact details of a monitor or other office-holder, the following information must be given—

• (a) a postal address for the monitor or office-holder, and

• (b) either an email address, or a telephone number, through which the monitor may be contacted.

“The England and Wales Insolvency Rules”

50

In this Part of this Schedule “the England and Wales Insolvency Rules” means the Insolvency (England and Wales) Rules 2016.

Interpretation: general

51

Expressions used in this Part of this Schedule are to be construed as if this Part of this Schedule were contained in Part A1 of the Insolvency Act 1986.

PART 4 — Temporary rules: Scotland

Introductory

52

Paragraphs 53 to 90 cease to have effect at the end of the relevant period, subject to paragraph 3.

Definition of “the court”

53

Section A54(1) of the Insolvency Act 1986 has effect as if for the definition of “the court” there were substituted—

“the court”, in relation to a company, means a court having jurisdiction to wind up the company;

.

Content of documents relating to the obtaining or extending of a moratorium: general

54

A notice or statement under section A6(1), A8(2), A10(1), A11(1) or A13(2) of the Insolvency Act 1986 must state—

• (a) the provision under which it is given or made,

• (b) the nature of the notice or statement,

• (c) the date of the notice or statement, and

• (d) the identification details for the company to which it relates.

Authentication of documents relating to obtaining or extending moratorium: general

55

• (1) A notice or statement under section A6(1), A10(1), A11(1) or A13(2) of the Insolvency Act 1986 must be authenticated by or on behalf of the person giving the notice or making the statement.

• (2) A notice under section A8(2)(a) of the Insolvency Act 1986 must be authenticated by the monitor.

• (3) Rule 1.6 of the Scottish Insolvency Rules applies for the purposes of authentication under this paragraph.

Notice that directors wish to obtain a moratorium

56

A notice under section A6(1)(a) of the Insolvency Act 1986 must state—

• (a) the company's address for service, and

• (b) the court in which the documents are to be lodged under section A3 or the application under section A4 or A5 is to be made.

Proposed monitor’s statement and consent to act

57

• (1) A statement under section A6(1)(b) of the Insolvency Act 1986 must be headed “Proposed monitor's statement and consent to act” and must contain the following—

• (a) a certificate that the proposed monitor is qualified to act as an insolvency practitioner in relation to the company,

• (b) the proposed monitor's IP number,

• (c) the name of the relevant recognised professional body which is the source of the proposed monitor's authorisation to act in relation to the company, and

• (d) a statement that the proposed monitor consents to act as monitor in relation to the company.

• (2) In this paragraph “IP number” means the number assigned to an office-holder as an insolvency practitioner by the Secretary of State.

Timing of statements for obtaining moratorium

58

Each statement under section A6(1)(b) to (e) of the Insolvency Act 1986 must be made within the period of 5 days ending with the day on which the documents under section A6(1)(a) to (e) are lodged in the court (or, if the documents are lodged on different days, the last of those days).

Notice by monitor where moratorium comes into force

59

A notice under section A8(2) of the Insolvency Act 1986 must—

• (a) state that it is given by the monitor acting in that capacity, and

• (b) state the name and contact details of the monitor.

Notice that directors wish to extend a moratorium

60

A notice under section A10(1)(a) or A11(1)(a) of the Insolvency Act 1986 must state—

• (a) the company's address for service,

• (b) the court in which the notice is to be lodged.

Extension under section A10 or A11 of the Insolvency Act 1986: notices and statements

61

A statement by the monitor under section A10(1)(d) or A11(1)(d) of the Insolvency Act 1986 must contain contact details of the monitor.

Timing of statements for extension under section A10 or A11

62

Each statement under section A10(1)(b) to (d) or A11(1)(b) to (e) of the Insolvency Act 1986 must be made within the period of 3 days ending with the day on which the documents under section A10(1)(a) to (d) or A11(1)(a) to (e) are lodged in the court (or, if the documents are lodged on different days, the last of those days).

Obtaining creditor consent: qualifying decision procedure

63

• (1) The following apply, so far as relevant, for the purposes of a decision to consent to a revised end date for a moratorium under section A12 of the Insolvency Act 1986—

• (a) Part 5 of the Scottish Insolvency Rules (decision making), apart from rule 5.8(3)(f) and (g);

• (b) Part 6 of the Scottish Insolvency Rules (proxies), apart from rule 6.7.

• (2) In its application by virtue of sub-paragraph (1), Part 5 has effect subject to the modifications set out in paragraphs 64 to 68.

64

Rule 5.11 of the Scottish Insolvency Rules (notice of decision procedures etc) has effect as if, before the first entry in the table, there were inserted—

moratorium	decision of pre-moratorium creditors under section A12 of the Act	the pre-moratorium creditors	5 days

.

65

Rule 5.26 of the Scottish Insolvency Rules (creditors' voting rights) has effect as if, before paragraph (1), there were inserted—

(A1) A pre-moratorium creditor is entitled to vote in a decision procedure under section A12 of the Act only if— (a) the creditor has delivered to the convener a statement of claim and documentary evidence of debt, including any calculation for the purposes of rule 5.28 or 5.29, (b) the statement of claim and documentary evidence of debt were received by the convener not later than the decision date, or in the case of a meeting, at or before the meeting, and (c) the statement of claim and documentary evidence of debt has been admitted for the purposes of entitlement to vote.

66

Rule 5.28 of the Scottish Insolvency Rules (calculation of voting rights) has effect as if—

• (a) before paragraph (1) there were inserted—

(A1) In relation to a decision to consent to a revised end date for a moratorium under section A12 of the Act votes are calculated according to the amount of each creditor's claim at the decision date.

;

• (b) after paragraph (2) there were inserted—

(2A) But in relation to a decision to consent to a revised end date for a moratorium under section A12 of the Act, a debt of an unliquidated or unascertained amount is to be valued at £1 for the purposes of voting unless the convener or chair or an appointed person decides to put a higher value on it.

;

• (c) in paragraph (6), after sub-paragraph (b) there were inserted—

(c) where the decision relates to whether to consent to a revised end date for a moratorium under section A12 of the Act.

67

Rule 5.29 of the Scottish Insolvency Rules (calculation of voting rights: hire-purchase agreements) has effect as if, before paragraph (1), there were inserted—

(A1) In relation to a decision to consent to a revised end date for a moratorium under section A12 of the Act, a pre-moratorium creditor under a hire-purchase agreement is entitled to vote in respect of the amount of the debt due and payable by the company at the decision date. (B1) In calculating the amount of any debt for the purpose of paragraph (A1), no account is to be taken of any amount attributable to the exercise of any right under the relevant agreement so far as the right has become exercisable solely by virtue of a moratorium for the company coming into force.

68

Rule 5.31 of the Scottish Insolvency Rules (requisite majorities) has effect as if, before paragraph (1), there were inserted—

(A1) Subject to paragraph (B1), a decision to consent to a revised end date for a moratorium under section A12 of the Act is made if, of those voting— (a) a majority (in value) of the pre-moratorium creditors who are secured creditors vote in favour of the proposed decision, and (b) a majority (in value) of the pre-moratorium creditors who are unsecured creditors vote in favour of the proposed decision. (B1) But a decision to consent to a revised end date for a moratorium under section A12 of the Act is not made if, of those voting either— (a) a majority of the pre-moratorium creditors who are unconnected secured creditors vote against the proposed end date, or (b) a majority of the pre-moratorium creditors who are unconnected unsecured creditors vote against the proposed end date. (C1) For the purposes of paragraph (B1)— (a) a creditor is unconnected unless the convener or chair decides that the creditor is connected, and (b) the total value of the unconnected creditors is the total value of those unconnected creditors whose claims have been admitted for voting.

Content of application to the court for extension of moratorium

69

• (1) An application by the directors of a company for the extension of a moratorium under section A13 of the Insolvency Act 1986 must state—

• (a) that it is made under that section,

• (b) the length of the extension sought,

• (c) identification details for the company to which the application relates,

• (d) the company's address for service, and

• (e) the court in which the application is made.

• (2) The application must be authenticated by or on behalf of the directors.

• (3) Rule 1.6 of the Scottish Insolvency Rules applies for the purposes of authentication under sub-paragraph (2).

Timing of statements accompanying application to court for extension of moratorium

70

A statement under section A13(2) must be made within the period of 3 days ending with the day on which the application under that section is made.

Notices about change in end of moratorium

71

• (1) A notice under section A17(1) of the Insolvency Act 1986 must be given within the period of 5 days beginning with the day on which the duty to give the notice arises.

• (2) The notice must state—

• (a) the name of the company to which it relates, and

• (b) the provision by virtue of which the moratorium was extended or came to an end.

72

• (1) A notice under section A17(2) or (3) of the Insolvency Act 1986 must be given within the period of 5 days beginning with the day on which the duty to give the notice arises.

• (2) The notice must state—

• (a) the provision under which it is given,

• (b) the nature of the notice,

• (c) the date of the notice,

• (d) that it is given by the monitor acting in that capacity,

• (e) the name and contact details of the monitor, and

• (f) the identification details for the company to which it relates.

• (3) A notice under section A17(2) or (3) of the Insolvency Act 1986 that is given to the registrar of companies must be authenticated by or on behalf of the monitor.

• (4) Rule 1.6 of the Scottish Insolvency Rules applies for the purposes of authentication under sub-paragraph (3).

73

Where a moratorium comes to an end under section A16 of the Insolvency Act 1986 because the company has entered into a relevant insolvency procedure within the meaning of that section, the notices under section A17(1) and (2) must state—

• (a) the date on which the company entered into the relevant insolvency procedure, and

• (b) the name and contact details of the supervisor of the voluntary arrangement, the administrator or the liquidator.

74

• (1) A notice under section A17(4) of the Insolvency Act 1986 must be given within the period of 3 business days beginning with the day on which the notice under section A38(1) is lodged in the court.

• (2) The notice under section A17(4) of that Act must be accompanied by the notice that the monitor has lodged in the court under section A38(1) of that Act.

Notification by directors of insolvency proceedings etc

75

• (1) A notice under section A24(1) of the Insolvency Act 1986 must be given before the period of 3 days ending with the day on which the step mentioned there is taken.

• (2) A notice under section A24(2) of the Insolvency Act 1986 must be given within the period of 3 days beginning with the day on which the duty to give the notice arises.

Notice of termination of moratorium

76

• (1) A notice under section A38(1) of the Insolvency Act 1986 must be lodged in the court as soon as practicable after the duty in that subsection arises.

• (2) The notice must state—

• (a) the provision under which it is given,

• (b) the nature of the notice,

• (c) the date of the notice,

• (d) the name and contact details of the monitor,

• (e) the identification details for the company to which it relates,

• (f) the grounds on which the moratorium is being terminated,

• (g) the monitor's reasons for concluding that those grounds are made out,

• (h) the date on which the monitor concluded that those grounds were made out, and

• (i) the court in which the notice is to be lodged.

• (3) The notice must be authenticated by or on behalf of the monitor.

• (4) Rule 1.6 of the Scottish Insolvency Rules applies for the purposes of authentication under sub-paragraph (3).

Termination of moratorium under section A38(1)(d) of the Insolvency Act 1986

77

For the purposes of deciding whether to bring a moratorium to an end under section A38(1)(d) of the Insolvency Act 1986 the monitor must disregard—

• (a) any debts that the monitor has reasonable grounds for thinking are likely to be paid within 5 days of the decision, and

• (b) any debts in respect of which the creditor has agreed to defer payment until a time that is later than the decision.

Replacement of monitor or additional monitor: statement and consent to act

78

• (1) A statement under section A39(4) of the Insolvency Act 1986 must be headed “Proposed monitor's statement and consent to act” and must contain the following—

• (a) a certificate that the proposed monitor is qualified to act as an insolvency practitioner in relation to the company,

• (b) the proposed monitor's IP number,

• (c) the name of the relevant recognised professional body which is the source of the proposed monitor's authorisation to act in relation to the company, and

• (d) a statement that the proposed monitor consents to act as monitor in relation to the company.

• (2) The statement must be made within the period of 5 days ending with the day on which it is lodged in the court.

• (3) In this paragraph “IP number” means the number assigned to an office-holder as an insolvency practitioner by the Secretary of State.

Replacement of monitor or additional monitor: notification

79

• (1) A notice under section A39(8) of the Insolvency Act 1986 must state—

• (a) the provision under which it is given,

• (b) the nature of the notice,

• (c) the date of the notice,

• (d) the identification details for the company to which it relates,

• (e) that it is given by the monitor acting in that capacity, and

• (f) the name and contact details of the monitor.

• (2) The notice must be authenticated by the monitor.

• (3) Rule 1.6 of the Scottish Insolvency Rules applies for the purposes of authentication under sub-paragraph (2).

Challenge to monitor’s remuneration

80

• (1) An administrator or liquidator of a company may apply to the court on the ground that remuneration charged by the monitor in relation to a prior moratorium for the company under Part A1 of the Insolvency Act 1986 was excessive.

• (2) An application under this paragraph may not be made after the end of the period of 2 years beginning with the day after the moratorium ends.

• (3) On an application under this paragraph the court may—

• (a) dismiss the application,

• (b) order the monitor to repay some or all of the remuneration, or

• (c) make such other order as it thinks fit.

• (4) The expenses of an application under this paragraph are, unless the court orders otherwise, to be paid as an expense of the administration or liquidation.

Challenge to directors’ actions: qualifying decision procedure

81

Where the court makes an order by virtue of section A44(4)(c) of the Insolvency Act 1986 requiring a decision of a company's creditors, the following provisions of the Scottish Insolvency Rules apply for the purposes of that decision to the extent set out in the court's order and subject to any modifications set out in the court's order—

• (a) Part 5 (decision making);

• (b) Part 6 (proxies).

Priority of moratorium debts etc in subsequent winding up

82

• (1) Where section 174A of the Insolvency Act 1986 applies, the moratorium debts and pre-moratorium debts mentioned in subsection (2)(b) of that section are payable in the following order of priority—

• (a) amounts payable in respect of goods or services supplied during the moratorium under a contract where, but for section 233B(3) or (4) of that Act, the supplier would not have had to make that supply;

• (b) wages or salary arising under a contract of employment;

• (c) other debts or other liabilities apart from the monitor's remuneration or expenses;

• (d) the monitor's remuneration or expenses.

• (2) In this paragraph “wages or salary” has the same meaning as in section A18 of the Insolvency Act 1986.

Priority of moratorium debts etc in subsequent administration

83

• (1) Where paragraph 64A(1) of Schedule B1 to the Insolvency Act 1986 applies, the moratorium debts and pre-moratorium debts mentioned in paragraph 64A(2) of that Schedule are payable in the following order of priority—

• (a) amounts payable in respect of goods or services supplied during the moratorium under a contract where, but for section 233B(3) or (4) of that Act, the supplier would not have had to make that supply;

• (b) wages or salary arising under a contract of employment;

• (c) other debts or other liabilities apart from the monitor's remuneration or expenses;

• (d) the monitor's remuneration or expenses.

• (2) In this paragraph “wages or salary” has the same meaning as in section A18 of the Insolvency Act 1986.

Prescribed format of documents

84

Rule 1.5 of the Scottish Insolvency Rules (requirement for writing and form of documents) applies for the purposes of Part A1 of the Insolvency Act 1986.

85

• (1) The following provisions of the Scottish Insolvency Rules apply, so far as relevant, to any requirement imposed by a provision of this Part of this Schedule—

• rule 1.9 (prescribed format of documents), and

• rule 1.10 (variations from prescribed contents).

• (2) In their application by virtue of sub-paragraph (1), a reference in rule 1.9 or 1.10 to the requirements of a rule is to be read as a reference to the requirements of the provision of this Part of this Schedule.

Delivery of documents

86

The following provisions of Chapter 9 of Part 1 of the Scottish Insolvency Rules apply for the purposes of proceedings under Part A1 of the Insolvency Act 1986 as if rule 1.32(1) included a reference to such proceedings—

• rule 1.32(2) to (3) (delivery to registrar of companies);

• rule 1.36 (delivery of documents to authorised recipients);

• rule 1.37 (delivery of documents to joint office-holders);

• rule 1.38 (postal delivery of documents);

• rule 1.39 (delivery by document exchange);

• rule 1.40 (personal delivery of documents);

• rule 1.41 (electronic delivery of documents).

Identification details for a company

87

• (1) Where a provision of this Part of this Schedule requires a document to contain identification details for a company that is registered under the Companies Act 2006 in Scotland, the following information must be given—

• (a) the company's registered name;

• (b) its registered number;

• (2) Where a provision of this Part of this Schedule requires a document to contain identification details for a company that has registered particulars under section 1046(1) of the Companies Act 2006 (registered overseas companies), the following information must be given—

• (a) the name registered by the company under section 1047 of that Act,

• (b) the number under which it is registered, and

• (c) the country or territory in which it is incorporated.

• (3) Where a provision of this Part of this Schedule requires a document to contain identification details for an unregistered company that does not come within sub-paragraph (2) the following information must be given—

• (a) the company's name, and

• (b) the postal address of any principal place of business.

Contact details of a monitor or other office-holder

88

Where a provision of this Part of this Schedule requires a document to contain contact details of a monitor or other office-holder, the following information must be given—

• (a) a postal address for the monitor or office-holder, and

• (b) either an email address, or a telephone number, through which the monitor may be contacted.

“The Scottish Insolvency Rules”

89

In this Part of this Schedule “the Scottish Insolvency Rules” means the Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018 (S.I. 2018/1082).

Interpretation: general

90

Expressions used in this Part of this Schedule are to be construed as if this Part of this Schedule were contained in Part A1 of the Insolvency Act 1986.

PART 5 — Entities other than companies

91

Regulations under section 14(1) of the Limited Liability Partnership Act 2000 may make provision applying or incorporating provision made by or under this Schedule, with such modifications as appear appropriate, in relation to a limited liability partnership registered in Great Britain.

92

An order or regulations under section 118(1)(a), (3B) or (3C) of the Co-operative and Community Benefit Societies Act 2014 may provide for provision made by or under this Schedule to apply (with or without modifications) in relation to registered societies (or to registered societies of the kind mentioned there).

SCHEDULE 5

In the Insolvency (Northern Ireland) Order 1989, before Schedule A1 (which is repealed by Schedule 7 to this Act) insert—

SCHEDULE 6

In the Insolvency (Northern Ireland) Order 1989, after Schedule ZA1 (inserted by Schedule 5 to this Act) insert—

SCHEDULE 7

The Insolvency (Northern Ireland) Order 1989

1

The Insolvency (Northern Ireland) Order 1989 is amended as follows.

2

In each of the following places, for “Parts II to VII” substitute “ Parts 1A to 7 ”

• the heading before Article 5;

• Article 5(1);

• Article 6(1) and (2);

• Article 7;

• Article 8;

• the heading before Parts 2 to 7;

• Article 315(6);

• Article 366(1);

• Article 374(1).

3

In Article 2(2), in the definition of “regulations”—

• (a) after “(except in” insert “ Part 1A, Article 148A(6), ”;

• (b) omit “and paragraph 16 of Schedule A1”.

4

• (1) Article 3 (meaning of “act as insolvency practitioner”) is amended as follows.

• (2) In paragraph (1)(a), for “or administrative receiver” substitute “ , administrative receiver or monitor ”.

• (3) In paragraph (4), at the appropriate place insert—

“monitor” has the same meaning as in Part 1A (moratorium).

5

In Article 6 (meaning of “insolvency” etc), in paragraph (1), after “includes” insert “ the coming into force of a moratorium for the company under Part 1A, ”.

6

Omit Article 14A (moratorium where directors propose voluntary arrangement).

7

In Article 15 (procedure where nominee is not the liquidator or administrator), in paragraph (1), omit from “and the directors” to the end.

8

• (1) Article 17 (decision of the company and its creditors in relation to voluntary arrangement) is amended as follows.

• (2) After paragraph (4) insert—

(4A) Where the nominee's report under Article 15(2) is submitted to the Court before the end of the period of 12 weeks beginning with the day after the end of any moratorium for the company under Part 1A, a meeting so summoned may not approve any proposal or modification under which the following are to be paid otherwise than in full— (a) moratorium debts (within the meaning given by Article 148A); (b) priority pre-moratorium debts (within the meaning given by Article 148A); but this is subject to paragraph (4B). (4B) Paragraph (4A) does not prevent the approval of such a proposal or modification with the concurrence of the creditor concerned.

• (3) In paragraph (5), for “and (4)” substitute “ to (4B) ”.

9

• (1) Article 17A (approval of voluntary arrangement) is amended as follows.

• (2) In paragraph (2)(b), for “(4)” substitute “ (6) ”.

• (3) In paragraph (5)—

• (a) for “within the meaning given by paragraph 54 of Schedule A1” substitute “ as defined by Article 13H(13) ”;

• (b) for “within the meaning of paragraph 54 of Schedule A1” substitute “ as defined by Article 13H(13) ”.

10

• (1) Article 18 (effect of approval of voluntary arrangement) is amended as follows.

• (2) In paragraph (3), for “paragraph (4)” substitute “ paragraphs (3A) and (4) ”.

• (3) After paragraph (3) insert—

(3A) Where immediately before the voluntary arrangement took effect a moratorium for the company was in force under Part 1A and a petition for the winding up of the company, other than an excepted petition within the meaning of Article 13DB, was presented before the beginning of the moratorium, the High Court must dismiss the petition.

• (4) In paragraph (4) after “paragraph (3)(a)” insert “ or dismiss a petition under paragraph (3A) ”.

11

• (1) Article 20A (prosecution of delinquent officers of company) is amended as follows.

• (2) For paragraph (1) substitute—

(1) This Article applies where the approval of a voluntary arrangement in relation to a company has taken effect under Article 17A.

• (3) In paragraph (2)—

• (a) for the words before sub-paragraph (a) substitute “ If it appears to the supervisor that any past or present officer of the company has committed an offence in connection with the voluntary arrangement, the supervisor must forthwith ”;

• (b) in sub-paragraph (b), omit “nominee or”.

• (4) In paragraph (8), omit “nominee or”.

12

In Article 20B (arrangements coming to an end prematurely) omit—

• (a) “or paragraph 46 of Schedule A1”;

• (b) “or, as the case may be, paragraph 47(2)(b)(i) of Schedule A1”.

13

In Article 100 (expenses of voluntary winding up), at the beginning insert “ After the payment of any liabilities to which Article 148A applies, ”.

14

In Article 102 (circumstances in which company may be wound up by the High Court), omit sub-paragraph (fa).

15

In Article 104 (application for winding up by the High Court), omit paragraph (4A).

16

In Article 107 (avoidance of property dispositions etc), after paragraph (2) insert—

(3) This Article has no effect in respect of anything done during a moratorium under Part 1A, or during a period mentioned in Article 18(4)(a) following the end of a moratorium, where the winding-up order was made on a petition presented before the moratorium begins, unless the petition was presented under section 367 of the Financial Services and Markets Act 2000 on the ground mentioned in section 367(3)(b) of that Act.

17

Before Article 149 (and before the italic heading “Preferential debts” above that Article) insert—

(148A) (1) This Article applies where proceedings for the winding up of a company are begun before the end of the period of 12 weeks beginning with the day after the end of any moratorium for the company under Part 1A. (2) In the winding up, the following are payable out of the company's assets (in the order of priority shown) in preference to all other claims— (a) any prescribed fees or expenses of the official receiver acting in any capacity in relation to the company; (b) moratorium debts and priority pre-moratorium debts. (3) In paragraph (2)(b) “priority pre-moratorium debt” means— (a) any pre-moratorium debt that is payable in respect of— (i) the monitor's remuneration or expenses, (ii) goods or services supplied during the moratorium, (iii) rent in respect of a period during the moratorium, or (iv) wages or salary arising under a contract of employment, so far as relating to a period of employment before or during the moratorium, (b) any pre-moratorium debt that— (i) consists of a liability to make a redundancy payment, and (ii) fell due before or during the moratorium, and (c) any pre-moratorium debt that— (i) arises under a contract or other instrument involving financial services, (ii) fell due before or during the moratorium, and (iii) is not relevant accelerated debt (see paragraph (4)). (4) For the purposes of paragraph (3)(c)— - “relevant accelerated debt” means any pre-moratorium debt that fell due during the relevant period by reason of the operation of, or the exercise of rights under, an acceleration or early termination clause in a contract or other instrument involving financial services; - “the relevant period” means the period— 1. beginning with the day on which the statement under Article 13BC(1)(e) is made, and 2. ending with the last day of the moratorium. (5) The rules may make provision as to the order in which the debts mentioned in paragraph (2)(b) rank among themselves in a case where the assets of the company are insufficient to meet them in full. (6) Regulations may amend this Article for the purposes of changing the definition of “moratorium debt” or “priority pre-moratorium debt” in this Article. (7) Regulations under paragraph (6) may make consequential, supplementary, incidental or transitional provision or savings. (8) Regulations may not be made under paragraph (6) unless a draft of the regulations has been laid before, and approved by a resolution of, the Assembly. (9) For the purposes of this Article proceedings for the winding up of a company are begun when— (a) a winding-up petition is presented, or (b) a resolution for voluntary winding up is passed. (10) Any rules made under Article 13D(4) (meaning of supply of goods or services) apply also for the purposes of paragraph (3)(a)(ii) of this Article. (11) In this Article— - “acceleration or early termination clause”, in relation to a contract or other instrument involving financial services, means a provision of the contract or other instrument— 1. under which, on the happening of an event— 1. a debt or other liability falls due earlier than it otherwise would, or 2. a debt or other liability is terminated and replaced by another debt or liability, or 2. which confers on a party a right which, if exercised, will result in — 1. a debt or other liability falling due earlier than it otherwise would, or 2. a debt or other liability being terminated and replaced by another debt or liability; - “contract or other instrument involving financial services” has the same meaning as it has for the purposes of Article 13D (see Schedule ZA2); - “monitor's remuneration or expenses” has the meaning given by Article 13D; - “moratorium debt” has the meaning given by Article 13HD; - “pre-moratorium debt” has the meaning given by Article 13HD; - “redundancy payment” has the meaning given by Article 13D; - “wages or salary” has the meaning given by Article 13D.

18

• (1) Article 149 (preferential debts: general provision) is amended as follows.

• (2) In paragraph (1), at the end insert “after the payment of—

• (a) any liabilities to which Article 148A applies, and

• (b) expenses of the winding up.”

• (3) In paragraph (1A), omit “after the expenses of the winding up”.

19

• (1) Article 197 (supplies of water, electricity, etc) is amended as follows.

• (2) In paragraph (1)—

• (a) omit sub-paragraph (ba) (including the “or” at the end);

• (b) in the words after sub-paragraph (e), omit “the nominee,”.

• (3) In paragraph (4), omit sub-paragraph (ba).

20

In Article 208ZA (remote attendance at meetings), as inserted by section 1(1) of the Insolvency (Amendment) Act (Northern Ireland) 2016, in paragraph (9), before sub-paragraph (a) insert—

(za) the monitor in relation to a moratorium under Part 1A;

.

21

In Article 208ZB (use of websites), as inserted by section 1(1) of the Insolvency (Amendment) Act (Northern Ireland) 2016, in paragraph (2), before sub-paragraph (a) insert—

(za) the monitor in relation to a moratorium under Part 1A;

.

22

In Article 347 (“the relevant date” in relation to preferential debts), omit paragraph (2A).

23

• (1) Article 362 (monetary limits) is amended as follows.

• (2) In paragraph (1), before sub-paragraph (a) insert—

(za) increase or reduce any of the money sums for the time being specified in the following provisions of Part 1A— - Article 13DG(1) (maximum amount of credit which company may obtain without disclosing moratorium); - Article 13DJ(2) (maximum amount for certain payments without obtaining monitor consent etc); - Article 13G(2) (minimum value of company property concealed or fraudulently removed, affecting criminal liability of company's officer); or

.

• (3) Omit paragraph (1)(c) (money sums: company moratorium) and the “or” before it.

24

In Article 373 (offences: disapplication of section 20(2) of the 1954 Act), in paragraph (4), after “Articles” insert “ 13DA(5), 13DG(3), 13DH(4), 13DI(1), 13DJ(5), 13DK(6), 13DL(2), 13DM(9), 13DN(4), ”.

25

In Article 383(a), for “Parts 2 to 7” substitute “ Parts 1A to 7 ”.

26

Omit Schedule A1 (moratorium where directors propose voluntary arrangement).

27

• (1) Schedule B1 (administration) is amended as follows.

• (2) Omit paragraph 25.

• (3) Before paragraph 66 (but after the italic heading “Distribution”) insert—

(65A) (1) This paragraph applies where a company enters administration before the end of the period of 12 weeks beginning with the day after the end of any moratorium under Part 1A. (2) The administrator must make a distribution to the creditors of the company in respect of— (a) moratorium debts (within the meaning given by Article 148A), and (b) priority pre-moratorium debts (within the meaning given by Article 148A). (3) A sum payable under sub-paragraph (2) is to be paid in priority to— (a) any security to which paragraph 71 applies; (b) any sums payable under paragraph 100. (4) The administrator must realise any property necessary to comply with sub-paragraph (2). (5) The rules may make provision as to the order in which the moratorium and priority pre-moratorium debts rank among themselves for the purposes of this paragraph in a case where the assets of the company are insufficient to meet them in full.

• (4) In paragraph 66, for sub-paragraph (1) substitute—

(1) If the assets of a company are sufficient to meet any debts or other liabilities payable under paragraph 65A in full, the administrator of the company may make a distribution to any other creditor of the company.

• (5) In paragraph 67, for “The administrator of a company” substitute “ If the debts or other liabilities payable under paragraph 65A have been met, the administrator of a company ”.

28

• (1) Schedule 5 (provision capable of inclusion in company insolvency rules) is amended as follows.

• (2) In paragraph 8, after “is,” insert “ the monitor in relation to a moratorium under Part 1A or ”.

29

• (1) Schedule 7 (punishment of offences under the Order) is amended as follows.

• (2) Omit the entries relating to Schedule A1.

• (3) At the appropriate place insert—

13BE(4)	Directors failing to notify monitor of beginning of moratorium.	1. On indictment.	2 years or a fine or both.
13BE(4)	Directors failing to notify monitor of beginning of moratorium.	2. Summary.	6 months orthe statutorymaximum orboth.
13BE(5)	Monitor failing to notify creditors etc of beginning of moratorium.	Summary.	Level 3 on the standard scale.
13CH(6)	Directors failing to notify monitor of change in end of moratorium.	1. On indictment.	2 years or a fine or both.
13CH(6)	Directors failing to notify monitor of change in end of moratorium.	2. Summary.	6 months orthe statutorymaximum orboth.
13CH(7)	Monitor failing to notify creditors etc of change in end of moratorium.	Summary.	Level 3 on the standard scale.
13DA(5)	Company or officer failing to state in correspondence etc that moratorium in force.	Summary.	Level 3 on the standard scale.
13DF(4)	Directors failing to notify monitor of insolvency proceedings etc.	1. On indictment.	2 years or a fine or both.
13DF(4)	Directors failing to notify monitor of insolvency proceedings etc.	2. Summary.	6 months orthe statutorymaximum orboth.
13DG(3)(a)	Company obtaining credit without disclosing existence of moratorium.	1. On indictment.	A fine.
13DG(3)(a)	Company obtaining credit without disclosing existence of moratorium.	2. Summary.	The statutory maximum.
13DG(3)(b)	Obtaining credit for company without disclosing existence of moratorium.	1. On indictment.	2 years or a fine or both.
13DG(3)(b)	Obtaining credit for company without disclosing existence of moratorium.	2. Summary.	6 months orthe statutorymaximum orboth.
13DH(4)(a)	Company granting security without monitor's consent.	1. On indictment.	A fine.
13DH(4)(a)	Company granting security without monitor's consent.	2. Summary.	The statutory maximum.
13DH(4)(b)	Authorising or permitting company to do so.	1. On indictment.	2 years or a fine or both.
13DH(4)(b)	Authorising or permitting company to do so.	2. Summary.	6 months orthe statutorymaximum orboth.
13DI(1)(a)	Company entering into market contract, etc.	1. On indictment.	A fine.
13DI(1)(a)	Company entering into market contract, etc.	2. Summary.	The statutory maximum.
13DI(1)(b)	Authorising or permitting company to do so.	1. On indictment.	2 years or a fine or both.
13DI(1)(b)	Authorising or permitting company to do so.	2. Summary.	6 months orthe statutorymaximum orboth.
13DJ(5)(a)	Company making unauthorised payments.	1. On indictment.	A fine.
13DJ(5)(a)	Company making unauthorised payments.	2. Summary.	The statutory maximum.
13DJ(5)(b)	Authorising or permitting company to do so.	1. On indictment.	2 years or a fine or both.
13DJ(5)(b)	Authorising or permitting company to do so.	2. Summary.	6 months orthe statutorymaximum orboth.
13DK(6)(a)	Company making unauthorised disposal of property.	1. On indictment.	A fine.
13DK(6)(a)	Company making unauthorised disposal of property.	2. Summary.	The statutory maximum.
13DK(6)(b)	Authorising or permitting such a disposal.	1. On indictment.	2 years or a fine or both.
13DK(6)(b)	Authorising or permitting such a disposal.	2. Summary.	6 months orthe statutorymaximum orboth.
13DL(2)(a)	Unauthorised disposal of hire-purchase property.	1. On indictment.	A fine.
13DL(2)(a)	Unauthorised disposal of hire-purchase property.	2. Summary.	The statutory maximum.
13DL(2)(b)	Authorising or permitting such a disposal.	1. On indictment.	2 years or a fine or both.
13DL(2)(b)	Authorising or permitting such a disposal.	2. Summary.	6 months orthe statutorymaximum orboth.
13DM(8)	Directors failing to send to registrar copy of court order permitting disposal of charged property.	Summary.	Level 3 on the standard scale.
13DM(9)(a)	Company failing to comply with requirements relating to disposal of charged property.	1. On indictment.	A fine.
13DM(9)(a)	Company failing to comply with requirements relating to disposal of charged property.	2. Summary.	The statutory maximum.
13DM(9)(b)	Authorising or permitting such a failure.	1. On indictment.	2 years or a fine or both.
13DM(9)(b)	Authorising or permitting such a failure.	2. Summary.	6 months orthe statutorymaximum orboth.
13DN(4)(a)	Company failing to comply with requirements relating to disposal of hire-purchase property.	1. On indictment.	A fine.
13DN(4)(a)	Company failing to comply with requirements relating to disposal of hire-purchase property.	2. Summary.	The statutory maximum.
13DN(4)(b)	Authorising or permitting such a failure.	1. On indictment.	2 years or a fine or both.
13DN(4)(b)	Authorising or permitting such a failure.	2. Summary.	6 months orthe statutorymaximum orboth.
13DN(6)	Directors failing to send to registrar copy of court order permitting disposal of hire-purchase property.	Summary.	Level 3 on the standard scale.
13EE(9)	Monitor failing to notify creditors etc of change in monitor.	Summary.	Level 3 on the standard scale.
13G(1)	Fraud or privity to fraud during or in anticipation of moratorium.	1. On indictment.	2 years or a fine or both.
13G(1)	Fraud or privity to fraud during or in anticipation of moratorium.	2. Summary.	6 months or the statutory maximum or both.
13G(4)	Knowingly taking in pawn or pledge, or otherwise receiving, company property.	1. On indictment.	2 years or a fine or both.
13G(4)	Knowingly taking in pawn or pledge, or otherwise receiving, company property.	2. Summary.	6 months orthe statutorymaximum orboth.
13GA(1)	False representation or fraud for purpose of obtaining or extending moratorium.	1. On indictment.	2 years or a fine or both.
13GA(1)	False representation or fraud for purpose of obtaining or extending moratorium.	2. Summary.	6 months orthe statutorymaximum orboth.
13H(5)	Directors failing to notify regulator of qualifying decision procedure in relation to regulated company	1. On indictment.	2 years or a fine or both.
13H(5)	Directors failing to notify regulator of qualifying decision procedure in relation to regulated company	2. Summary.	6 months orthe statutorymaximum orboth.

Building Societies Act 1986

30

In Schedule 15A to the Building Societies Act 1986 (application of other companies insolvency legislation to building societies), in paragraph 1(2)(b), omit “(except Article 14A)”.

Limited Liability Partnerships Act 2000

31

In section 14 of the Limited Liability Partnerships Act 2000 (regulations to make provision about insolvency and winding up), in subsection (1)(b), for “Parts 2” substitute “ Parts 1A ”.

The Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001

32

In Schedule 2 to the Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001 (S.I. 2001/2188) (disclosure of confidential information), at the end of the table (after the entry inserted by Schedule 3) insert—

The monitor in relation to a moratorium under Part 1A of the Insolvency (Northern Ireland) Order 1989	The monitor's functions in relation to the moratorium

.

The Insolvency Practitioners Regulations (Northern Ireland) 2006

33

In regulation 2 of the Insolvency Practitioners Regulations (Northern Ireland) 2006 (S.R. (N. I.) 2006/33) (interpretation: general), in paragraph (2), before sub-paragraph (a) insert—

(za) where the insolvency practitioner acts as the monitor in relation to a moratorium under Part 1A of the Order, whichever is the earlier of the date on which— (i) the moratorium comes to an end, or (ii) the insolvency practitioner otherwise ceases to act as the monitor in relation to the moratorium;

.

Insolvency (Northern Ireland) Order 2002 (S.I. 2002/3152 (N.I. 6))

34

• (1) The Insolvency (Northern Ireland) Order 2002 is amended as follows.

• (2) In Schedule 1, omit—

• (a) paragraphs 2 to 5, 7 and 8;

• (b) paragraph 9(2)(a) and (c) and (3)(a);

• (c) paragraphs 10 to 12.

Insolvency (Northern Ireland) Order 2005 (S.I. 2005/1455 (N.I. 10))

35

The Insolvency (Northern Ireland) Order 2005 is amended as follows.

36

• (1) Article 10 is amended as follows.

• (2) At the end of the heading insert “ etc ”.

• (3) In paragraph (2)—

• (a) after “by order provide for” insert

— (i) Part 1A of the 1989 Order (moratorium), or

;

• (b) the words “a company arrangement or administration provision” become sub-paragraph (ii) of that paragraph.

37

Omit Article 11.

38

In Schedule 2, omit paragraph 45.

Insolvency (Amendment) Act (Northern Ireland) 2016

39

In Schedule 3 to the Insolvency (Amendment) Act (Northern Ireland) 2016 omit paragraph 17.

SCHEDULE 8

PART 1 — “Relevant period” and powers to turn off temporary provision

“Relevant period”

1

In this Schedule “relevant period” means the period which—

• (a) begins with the day on which this Schedule comes into force, and

• (b) ends with 30 March 2022.

Power to turn off particular provisions of Part 2 of this Schedule early

2