The Insolvency Act 1986 (Disqualification from Parliament) Order 2012

Made: 13th June 2012

Coming into force in accordance with article 1

In accordance with section 266(5) of that Act, a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament:

Citation and commencement

1

This Order may be cited as the Insolvency Act 1986 (Disqualification from Parliament) Order 2012 and shall come into force on the day after the day on which it is made.

Amendments to the Insolvency Act 1986

2

The Insolvency Act 1986 has effect subject to the following amendments (which provide for sections 426A and 426B of that Act to have effect in relation to bankruptcy restrictions orders made and undertakings accepted in Northern Ireland and make provision consequential on that effect).

3

In section 426A (disqualification from Parliament (England and Wales))[^f00004]—

• (a) in the heading for “(England and Wales)” substitute “(England and Wales and Northern Ireland)”;

• (b) after subsection (6) insert—

(7) If the Department of Enterprise, Trade and Investment for Northern Ireland accepts a bankruptcy restrictions undertaking made by a member of the House of Commons or the House of Lords under Schedule 2A to the Insolvency (Northern Ireland) Order 1989, the Department shall notify the Speaker of that House. (8) In this section a reference to a bankruptcy restrictions order or an interim order includes a reference to a bankruptcy restrictions order or an interim order made under Schedule 2A to the Insolvency (Northern Ireland) Order 1989.

4

In section 426B (devolution)[^f00005]—

• (a) in subsection (1) after “If a court” insert “in England and Wales”;

• (b) after subsection (1) insert—

(1A) If the High Court in Northern Ireland makes a bankruptcy restrictions order or interim order under Schedule 2A to the Insolvency (Northern Ireland) Order 1989 in respect of a member of the Scottish Parliament or the National Assembly for Wales, the Court shall notify the presiding officer of that body.

• (c) at the end insert—

(3) If the Department of Enterprise, Trade and Investment for Northern Ireland accepts a bankruptcy restrictions undertaking made by a member of the Scottish Parliament or the National Assembly for Wales under Schedule 2A to the Insolvency (Northern Ireland) Order 1989, the Department shall notify the presiding officer of that body.

5

In section 427 (disqualification from Parliament (Scotland and Northern Ireland))—

• (a) in the heading omit “and Northern Ireland”;

• (b) in subsection (1)[^f00006] omit “a court in Northern Ireland adjudges an individual bankrupt or”;

• (c) in subsection (2)—

• (i) in paragraph (a) for “the adjudication is annulled or the award recalled” substitute “the award is recalled”;

• (ii) in paragraph (b) omit “annulment,”;

• (d) in subsection (4) omit “adjudication or”;

• (e) in subsection (5) omit “adjudication or” in both places it occurs;

• (f) in subsection (6)—

• (i) omit “adjudication or” in each place it occurs;

• (ii) in each of paragraphs (a) and (b), omit “annulled,”;

• (g) in subsection (6C)[^f00007] for the words preceding paragraph (a) substitute—

(6C) Subsections (4) to (6) have effect in relation to a member of the Northern Ireland Assembly but as if—

6

In section 441(1)(a) (extent (Northern Ireland)), after “426, ” insert “426A, 426B,”.

Signed

Hugo Swire — Minister of State — 13th June 2012

Explanatory note

(This note is not part of the Order)

EXPLANATORY NOTE

This Order amends the Insolvency Act 1986 (c. 45) (“the 1986 Act”) to introduce new Parliamentary disqualification provisions for members subject to bankruptcy proceedings in Northern Ireland that are equivalent to the provisions applying in England and Wales.

Article 3 extends section 426A of the 1986 Act to Northern Ireland so that, on becoming subject to a bankruptcy restrictions order or interim order made by the Northern Ireland High Court, a person will be subject to Parliamentary disqualification provisions. It requires the Northern Ireland High Court to notify the Speaker of the House of Commons or House of Lords if it makes a bankruptcy restrictions order or interim order in respect of a member of that House. It also requires the Department of Enterprise, Trade and Investment to notify the Speaker of the House of Commons or House of Lords if it accepts a bankruptcy restrictions undertaking from a member of that House.

Article 4 extends section 426B of the 1986 Act to require the Northern Ireland High Court to notify the presiding officer of the Scottish Parliament or the National Assembly for Wales if it makes a bankruptcy restrictions order or interim order in respect of a member of that body. It also requires the Department of Enterprise, Trade and Investment to notify the presiding officer of the Scottish Parliament or the National Assembly for Wales if it accepts a bankruptcy restrictions undertaking from a member of that body.

Article 5 amends section 427 of the 1986 Act to remove the provisions dealing with disqualification from Parliament arising from bankruptcy proceedings in Northern Ireland.

Article 6 amends section 441 of the 1986 Act to extend sections 426A and 426B of the 1986 Act to Northern Ireland.

A regulatory impact assessment has not been prepared for this instrument as it has no impact on costs to business, charities or voluntary bodies.

Footnotes

[^f00001]: S.I. 1989/2405 (N.I. 19); Schedule 2A was inserted by article 13 of S.I. 2005/1455 (N.I. 10).

[^f00002]: 1986 c. 45; Schedule 4A was inserted by section 257 of the Enterprise Act 2002 (c. 40).

[^f00003]: 2002 c. 40.

[^f00004]: Section 426A was inserted by section 266(1) of the Enterprise Act 2002 and amended by the Tribunals, Courts and Enforcement Act 2007 (c. 15), section 108(3) and Schedule 20, paragraphs 1 and 12.

[^f00005]: Section 426B was inserted by section 266(1) of the Enterprise Act 2002 and amended by the Tribunals, Courts and Enforcement Act 2007, section 108(3) and Schedule 20, paragraphs 1 and 13.

[^f00006]: Section 427(1) was amended by section 266(2)(a) of the Enterprise Act 2002.

[^f00007]: Section 427(6C) was inserted by section 99 of the Northern Ireland Act 1998 (c. 47).