Made | 13th December 2006 | ||
To be laid before Parliament | |||
Coming into operation | 8th January 2007 |
Transitional provisions
2.
The amendments to the 1995 Order set out in Articles 4, 7 and 14 do not apply where a petition for an administration order has been presented in relation to an insolvent partnership before the commencement date.
Amendments to the Arrangement of Articles to the 1995 Order
3.
In the Arrangement of Articles in the 1995 Order—
Amendments to Part III of the Insolvent Partnerships Order (Northern Ireland) 1995
4.
For Part III of the 1995 Order (administration orders) substitute—
Amendment to Article 10 of the Insolvent Partnerships Order (Northern Ireland) 1995
5.
For Article 10(6) of the 1995 Order substitute—
Amendments to Schedule 1 to the Insolvent Partnerships Order (Northern Ireland) 1995
6.
—(1) Schedule 1 to the 1995 Order (modified provisions of Part II of, and Schedule A1 to, the Order (company voluntary arrangements) as applied by Article 4) is amended as follows.
(2) In modified Article 14 (those who may propose an arrangement)—
(3) In modified Article 18 (effect of approval)—
(4) In modified Article 19 (challenge of decisions) in paragraph (2)(d) for "an administration order or" substitute "is in administration or an".
(5) In modified paragraph 3 of Schedule A1—
(6) In modified paragraph 4(1)(a) of Schedule A1 for "an administration order is in force in relation to the insolvent partnership" substitute "the partnership is in administration".
(7) For modified paragraph 23(1)(d) of Schedule A1 substitute—
(8) For modified paragraph 50(7) of Schedule A1 substitute—
(8) No application for an order under this paragraph may be made by a creditor or member of the insolvent partnership; but such an application may be made instead by the administrator (or as the case may be) the liquidator.".
Amendment to Schedule 2 to the Insolvent Partnerships Order (Northern Ireland) 1995
7.
For Schedule 2 to the 1995 Order (modified provisions of the Order applying for purposes of Article 6) substitute the provisions set out in Schedule 1.
Amendment to Schedule 3 to the Insolvent Partnerships Order (Northern Ireland) 1995
8.
—(1) Schedule 3 to the 1995 Order (modified provisions of the Order applying for purposes of Article 7) is amended as follows.
(2) In paragraph 3 of Part I (Article 185: Winding up of unregistered companies), in modified Article 185(6) after "103" insert "150A,".
(3) In paragraph 10 of Part II (modifications to Schedule 2) insert after modified paragraph 3 of modified Schedule 2 (powers of liquidator in a winding up) the following—
Amendments to Schedule 4 of the Insolvent Partnerships Order (Northern Ireland) 1995
9.
—(1) Schedule 4 to the 1995 Order (modified provisions of the Order applying for purposes of Article 8) is amended as follows.
(2) In paragraph 1(2) after "245" insert "256A" and after "278" insert "286A".
(3) In modified Article 185(6) after "132" insert ",150A,".
(4) In paragraph 15 of Part II (Article 119: appointment by the High Court following administration or voluntary arrangement), in modified Article 119(2) for "discharge of an administration order in respect of the partnership" substitute "appointment of an administrator in respect of the partnership ceasing to have effect" and for "who has ceased on the discharge of the administration order to be the administrator of the partnership" substitute "whose appointment as administrator has ceased to have effect".
(5) After paragraph 27 of Part II (Article 198: getting in the partnership property) insert new paragraph 27A as follows:—
(2) At the end of the period of 3 years beginning with the date of the bankruptcy the interest mentioned in paragraph (1) shall—
(3) Paragraph (2) shall not apply if during the period mentioned in that paragraph—
(4) Where an application of a kind described in paragraph (3)(b) to (d) is made during the period mentioned in paragraph (2) and is dismissed, unless the High Court orders otherwise the interest to which the application relates shall on the dismissal of the application—
(5) If the individual member does not inform the trustee or the official receiver of his interest in a property before the end of the period of 3 months beginning with the date of the bankruptcy, the period of 3 years mentioned in paragraph (2)—
(6) The High Court may substitute for the period of 3 years mentioned in paragraph (2) a longer period—
(7) The rules may make provision for this Article to have effect with the substitution of a shorter period for the period of 3 years mentioned in paragraph (2) in specified circumstances (which may be described by reference to action to be taken by a trustee in bankruptcy).
(8) The rules may also, in particular, make provision—
(9) Rules under paragraph (8)(b) may, in particular—
(6) After paragraph 28 of Part II (Article 257: individual member: restrictions on dispositions of property) insert new paragraph 28A as follows—
(b) the trustee applies for an order for the sale of the property, for an order for possession of the property or for an order under Article 286 in respect of the property.
(2) The High Court shall dismiss the application if the value of the interest is below such amount as may for the time being be specified for the purposes of this paragraph by Order under Article 362(1)(b).
(3) In determining the value of an interest for the purposes of this Article the High Court shall disregard any matter which it is required to disregard by the order which specifies the amount for the purposes of paragraph (2).".".
(7) In paragraph 29 (modification of Schedule 2) insert after modified paragraph 3 of modified Schedule 2 (powers of liquidator in a winding up) the following—
Amendment to Schedule 5 to the Insolvent Partnerships Order (Northern Ireland) 1995
10.
In Schedule 5 to the 1995 Order (modified provisions of the Order applying for purposes of Article 9) in modified Article 185(6) after "104(2) to (4)" insert "150A,".
Amendment to Schedule 6 to the Insolvent Partnerships Order (Northern Ireland) 1995
11.
In paragraph 3 of Schedule 6 to the 1995 Order (modified provisions of the Order applying for purposes of Article 10) in modified Article 185(6) after "132," insert "150A,".
Amendment to Schedule 7 to the Insolvent Partnerships Order (Northern Ireland) 1995
12.
—(1) Schedule 7 to the 1995 Order (modified provisions for the purposes of Article 11) is amended as follows.
(2) In paragraph 1(2) omit "249,".
(3) Omit paragraph 7 (Article 249: summary administration).
(4) After paragraph 6 (Article 246: grounds of joint bankruptcy petition) insert new paragraph 6A as follows—
(2) At the end of the period of 3 years beginning with the date of the bankruptcy the interest mentioned in paragraph (1) shall—
(3) Paragraph (2) shall not apply if during the period mentioned in that paragraph—
(4) Where an application of a kind described in paragraph (3)(b) to (d) is made during the period mentioned in paragraph (2) and is dismissed, unless the High Court orders otherwise the interest to which the application relates shall on the dismissal of the application—
(5) If the individual member does not inform the trustee or the official receiver of his interest in a property before the end of the period of 3 months beginning with the date of the bankruptcy, the period of 3 years mentioned in paragraph (2)—
(6) The High Court may substitute for the period of 3 years mentioned in paragraph (2) a longer period—
(7) The rules may make provision for this Article to have effect with the substitution of a shorter period for the period of 3 years mentioned in paragraph (2) in specified circumstances (which may be described by reference to action to be taken by a trustee in bankruptcy).
(8) The rules may also, in particular, make provision—
(9) Rules under paragraph (8)(b) may, in particular—
(5) After paragraph 20 (Article 285: obligation to surrender control to trustee) insert new paragraph 20A as follows—
(b) the trustee applies for an order for the sale of the property, for an order for possession of the property or for an order under Article 286 in respect of the property.
(2) The High Court shall dismiss the application if the value of the interest is below such amount as may for the time being be specified for the purposes of this paragraph by Order under Article 362(1)(b).
(3) In determining the value of an interest for the purposes of this Article the High Court shall disregard any matter which it is required to disregard by the order which specifies the amount for the purposes of paragraph (2).".".
Amendment to Schedule 8 to the Insolvent Partnerships Order (Northern Ireland) 1995
13.
—(1) Schedule 8 to the 1995 Order (Provisions of the Company Directors Disqualification (Northern Ireland) Order 2002 which apply with modifications for the purposes of Article 16) is amended as follows.
(2) In modified Article 9 (duty of High Court to disqualify unfit officers of insolvent partnerships)—
(3) In modified Article 10(4)(b) (disqualification order or undertaking; and reporting provisions) for "in relation to which an administration order is in force" substitute "which is in administration".
(4) In modified Schedule 1 (matters for determining unfitness of officers of partnerships) in paragraph 12(a) for "Article 34" substitute "paragraph 49 of Schedule B1".
Amendment to Schedule 9 to the Insolvent Partnerships Order (Northern Ireland) 1995
14.
Schedule 9 to the 1995 Order (forms) is amended as follows—
(c) for Forms 1, 4 and 16 substitute the Forms so numbered in Schedule 2 and after Form 1 insert Forms 1A and 1B as set out in Schedule 2.
Amendment to Schedule 10 to the Insolvent Partnerships Order (Northern Ireland) 1995
15.
Schedule 10 to the 1995 Order is amended as follows—
.
Signed by the authority of the Lord Chancellor
Bridget Prentice
Parliamentary Under Secretary of State, Department for Constitutional Affairs
Dated 8th December 2006
I concur with the forgoing Order.
Brian Kerr
Lord Chief Justice of Northern Ireland
Dated 13th December 2006
The Department of Enterprise, Trade and Investment hereby concurs with the foregoing Order.
Sealed with the Official Seal of the Department of Enterprise, Trade and Investment on 13th December 2006
L.S.
M. Bohill
Senior Officer of the Department of Enterprise, Trade and Investment
(2) A reference in this Schedule to a thing in writing includes a reference to a thing in electronic form.
(3) In this Schedule a reference to action includes a reference to inaction.".
3.
Paragraph 3 is modified so as to read as follows—
4.
Paragraph 8 is modified so as to read as follows—
5.
Paragraph 9 is modified so as to read as follows—
(2) Sub-paragraphs (1)(a) and (1)(b) are subject to paragraph 39.".
6.
Paragraph 12 is modified so as to read as follows—
7.
Paragraph 13 is modified so as to read as follows—
(2) As soon as is reasonably practicable after the making of an administration application the applicant shall notify such persons as may be prescribed.
(3) An administration application may not be withdrawn without the permission of the Court.
(4) In sub-paragraph (1) "creditor" includes a contingent creditor and a prospective creditor.
(5) Sub-paragraph (1) is without prejudice to Article 20(4)(b).".
8.
Paragraph 14 is modified so as to read as follows—
(2) An appointment of an administrator by administration order takes effect—
(3) An interim order under sub-paragraph (1)(d) may, in particular—
9.
Omit paragraphs 15 to 22.
10.
Paragraph 23 is modified so as to read as follows—
11.
Paragraph 24 is modified so as to read as follows—
(2) An administrator of the partnership may not be appointed under paragraph 23 during the period of 12 months beginning with the date on which the appointment referred to in sub-paragraph (1) ceases to have effect.".
12.
Paragraph 26 is modified so as to read as follows—
13.
Paragraph 27 is modified so as to read as follows—
14.
Paragraph 28 is modified so as to read as follows—
(2) The copy filed under sub-paragraph (1) must be accompanied by a statutory declaration made by or on behalf of the person who proposes to make the appointment—
(3) A statutory declaration under sub-paragraph (2) must—
(4) A person commits an offence if in a statutory declaration under sub-paragraph (2) he makes a statement—
15.
Paragraph 29 is modified so as to read as follows—
16.
Paragraph 30 is modified so as to read as follows—
(2) The notice of appointment must include a statutory declaration by or on behalf of the person who makes the appointment—
(3) The notice of appointment must identify the administrator and must be accompanied by a statement by the administrator—
(4) For the purpose of a statement under sub-paragraph (3) an administrator may rely on information supplied by members of the partnership (unless he has reason to doubt its accuracy).
(5) The notice of appointment must be in Form 1B in Schedule 9 to the Insolvent Partnerships Order (Northern Ireland) 1995 and any document accompanying it must be in the prescribed form.
(6) A statutory declaration under sub-paragraph (2) must be made during the prescribed period.
(7) A person commits an offence if in a statutory declaration under sub-paragraph (2) he makes a statement—
17.
Paragraph 31 is modified so as to read as follows—
18.
Paragraph 34 is modified so as to read as follows—
19.
Omit paragraphs 36 to 38.
20.
Omit paragraph 40.
21.
Paragraph 41 is modified so as to read as follows—
(3) Where an administrator becomes aware that a petition was presented under a provision referred to in sub-paragraph (2) before his appointment, he shall apply to the High Court for directions under paragraph 64.".
22.
Paragraph 43 is modified so as to read as follows—
(6) If a petition presented under a provision referred to in sub-paragraph (5) comes to the attention of the administrator, he shall apply to the High Court for directions under paragraph 64.".
23.
Paragraph 44 is modified so as to read as follows—
(3) No step may be taken to repossess goods in the partnership's possession under a hire-purchase agreement except—
(4) A landlord may not exercise a right of forfeiture by peaceable re-entry in relation to premises forming part of the partnership property or let to one or more officers of the partnership in their capacity as such except—
(5) No legal process (including legal proceedings and distress) may be instituted or continued against the partnership or partnership property except—
(6) Where the Court gives permission for a transaction under this paragraph it may impose a condition on or a requirement in connection with the transaction.
(7) In this paragraph "landlord" includes a person to whom rent is payable.".
24.
Paragraph 45 is modified so as to read as follows—
(2) This paragraph also applies from the time when a copy of notice of intention to appoint an administrator is filed with the Court under paragraph 28(1) until—
(3) The provisions of paragraph 43 and 44 shall apply (ignoring any reference to the consent of the administrator).
(4) This paragraph does not prevent or require the permission of the High Court for the presentation of a petition for the winding up of a partnership under a provision mentioned in paragraph 43(5).".
25.
Paragraph 47 is modified so as to read as follows—
(3) As soon as is reasonably practicable the administrator shall—
(4) The administrator shall send a notice of his appointment to such persons as may be prescribed before the end of the prescribed period beginning with the date specified in sub-paragraph (5).
(5) The date for the purpose of sub-paragraph (4) is—
(6) The High Court may direct that sub-paragraph 3(b) or (4)—
(7) A notice under this paragraph must—
(8) An administrator commits an offence if he fails without reasonable excuse to comply with a requirement of this paragraph.".
26.
Paragraph 48 is modified so as to read as follows—
(3) In sub-paragraph (1) "relevant person" means—
(4) For the purpose of sub-paragraph (3) a reference to employment is a reference to employment through a contract of employment or a contract for services.".
27.
Paragraph 50 is modified so as to read as follows—
(3) Proposals under this paragraph may include a proposal for a voluntary arrangement under Part II of this Order (although this paragraph is without prejudice to Article 17(3)).
(4) The administrator shall send a copy of the statement of his proposals—
(5) The administrator shall comply with sub-paragraph (4)—
(6) The administrator shall be taken to comply with sub-paragraph (4)(c) if he publishes in the prescribed manner a notice undertaking to provide a copy of the statement of proposals free of charge to any member of the partnership who applies in writing to a specified address.
(7) An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (5).
(8) A period specified in this paragraph may be varied in accordance with paragraph 108.".
28.
Paragraph 53 is modified so as to read as follows—
(2) But the administrator shall summon an initial creditor's meeting if it is requested—
(3) A meeting requested under sub-paragraph (2) must be summoned for a date in the prescribed period.
(4) The period prescribed under sub-paragraph (3) may be varied in accordance with paragraph 108.".
29.
Paragraph 56 is modified so as to read as follows—
(2) The Court may—
30.
Paragraph 62 is modified so as to read as follows—
31.
Paragraph 66 is modified so as to read as follows—
32.
Paragraph 70 is modified so as to read as follows:—
33.
Omit paragraph 71.
34.
—(1) In the cross-heading to paragraph 72 omit the words: "non-floating charge".
(2) Paragraph 72 is modified so as to read as follows—
(3) An order under this paragraph is subject to the condition that there be applied towards discharging the sums secured by the security—
(4) If any order under this paragraph relates to more than one security, application of money under sub-paragraph (3) shall be in the order of the priority of the securities.".
35.
Paragraph 74 is modified so as to read as follows—
(2) Sub-paragraph (1) does not apply to—
(3) The reference to a statement of proposals in sub-paragraph (1) includes a reference to a statement as revised or modified.".
36.
Paragraph 75 is modified so as to read as follows—
(2) A creditor or member of a partnership in administration may apply to the Court claiming that the administrator is not performing his functions as quickly or as effectively as is reasonably practicable.
(3) The Court may—
(4) In particular, an order under this paragraph may—
(5) An order may be made on a claim under sub-paragraph (1) whether or not the action complained of—
(6) An order may not be made under this paragraph if it would impede or prevent the implementation of—
37.
Paragraph 81 is modified so as to read as follows—
38.
Paragraph 83 is modified so as to read as follows—
(2) This paragraph also applies where a provisional liquidator of a partnership in administration is appointed following the presentation of a petition under either of the provisions listed in sub-paragraph (1).
(3) The High Court shall order—
(4) If the Court makes an order under sub-paragraph (3)(b) it may also—
39.
Omit paragraph 84.
40.
Paragraph 85 is modified so as to read as follows—
(7) An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (4).".
41.
Paragraph 88 is modified to read as follows—
42.
Paragraph 90 is modified so as to read as follows—
(3) An administrator who fails without reasonable excuse to comply with sub-paragraph (2) commits an offence.".
43.
Paragraph 91 is modified so as to read as follows—
44.
Paragraph 92 is modified so as to read as follows—
(2) But an application may be made in reliance on sub-paragraph (1)(b) and (c) only where—
45.
Omit paragraph 93.
46.
Paragraph 94 is modified so as to read as follows—
47.
Omit paragraph 95.
48.
Paragraph 96 is modified so as to read as follows—
49.
Omit paragraph 97.
50.
Paragraph 98 is modified so as to read as follows—
51.
Paragraph 99 is modified so as to read as follows—
(3) For the purpose of the application of sub-paragraph (2)(b) in a case where the administrator has made a statement under paragraph 53(1)(b), a resolution shall be taken as passed if (and only if) passed with the approval of—
(4) Discharge—
52.
Paragraph 100 is modified so as to read as follows—
(3) The former administrator's remuneration and expenses shall be charged on and payable out of property of which he had custody or control immediately before cessation.
(4) A sum payable in respect of a debt or liability arising out of a contract entered into by the former administrator or a predecessor before cessation shall be—
(5) Sub-paragraph (4) shall apply to a liability arising under a contract of employment which was adopted by the former administrator or a predecessor before cessation; and for that purpose—
(6) In sub-paragraph (5)(c) "wages or salary" includes—
53.
Paragraph 102 is modified so as to read as follows—
(5) The reference in paragraph 46(1)(a) to the name of the administrator is a reference to the name of each of the persons appointed to act jointly.
(6) Where persons are appointed to act jointly in respect of only some of the functions of the administrator of a partnership, this paragraph applies only in relation to those functions.".
54.
Paragraph 104 is modified so as to read as follows—
(3) Where a partnership entered administration by virtue of an appointment under paragraph 23, an appointment under sub-paragraph (1) must be made either by the High Court on the application of the person or persons acting as the administrator of the partnership or by the members of the partnership.
(4) An appointment under sub-paragraph (1) may be made only with the consent of the person or persons acting as the administrator of the partnership.".
55.
Omit paragraph 106.
56.
Paragraph 107 is modified so as to read as follows—
57.
Schedule 1 is modified to read as follows:—
[2] S.I. 1989/2405 (N.I. 19) – to which the most recent relevant amendments were made by S.R. 2002 No. 223back
[3] S.I. 2002/3150 (N.I. 4)back
[4] S.R. 1995 No. 225 as amended by S.R. 1996 No. 472, S.R. 2003 No. 144, S.R. 2003 No. 359, S.R. 2003 No. 550 and S.I. 2004 No. 355.back