1 Citation and commencement

These Regulations may be cited as the Insolvency Act 1986 (Amendment) (No 2) Regulations 2002 and shall come into force on 31st May 2002.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see above.

2 Interpretation

2Interpretation

In these Regulations “the Act” means the Insolvency Act 1986.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

3 Amendments to the Insolvency Act 1986

3Amendments to the Insolvency Act 1986

The Act is amended as provided for in these Regulations.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

4 Amendment to section 1

4Amendment to section 1

After section 1(3) (Persons who may propose a voluntary arrangement) insert—

“(4)    In this Part a reference to a company includes a reference to a company in relation to which a proposal for a voluntary arrangement may be made by virtue of Article 3 of the EC Regulation.”.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

5 Amendment to section 8

5Amendment to section 8

After section 8(6) (Power of court to make administration order) insert—

“(7)    In this Part a reference to a company includes a reference to a company in relation to which an administration order may be made by virtue of Article 3 of the EC Regulation.”.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

6 Amendment to section 117

6Amendment to section 117

After section 117(6) (Winding up jurisdiction in England and Wales) insert—

“(7)    This section is subject to Article 3 of the EC Regulation (jurisdiction under EC Regulation).”.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

7 Amendment to section 120

7Amendment to section 120

After section 120(5) (Winding up jurisdiction in Scotland) insert—

“(6)    This section is subject to Article 3 of the EC Regulation (jurisdiction under EC Regulation).”.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

8 Amendment to section 124

8Amendment to section 124

In section 124(1) (Application for winding up) after “contributory or contributories” insert—

“, or by a liquidator (within the meaning of Article 2(b) of the EC Regulation) appointed in proceedings by virtue of Article 3(1) of the EC Regulation or a temporary administrator (within the meaning of Article 38 of the EC Regulation)”.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

9 Amendment to section 221

9Amendment to section 221

In section 221(4) (Winding up of unregistered companies) at the end insert—

“, except in accordance with the EC Regulation”.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

10 Amendment to section 225

10Amendment to section 225

In section 225 (Winding up of dissolved overseas company) (which becomes subsection (1)) at end insert—

“(2)    This section is subject to the EC Regulation.”.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

11 Amendment to section 240

11Amendment to section 240

(1)    In section 240(3) (Relevant time for purpose of transaction at undervalue or preference) after paragraph (a) (and before the word “and”) insert—

“(aa)    in a case where section 238 or 239 applies by reason of a company going into liquidation following conversion of administration into winding up by virtue of Article 37 of the EC Regulation, the date of the presentation of the petition on which the administration order was made,”.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

12 Amendment to section 247

12Amendment to section 247

After section 247(2) (Meaning of “goes into liquidation”) insert—

“(3)    The reference to a resolution for voluntary winding up in subsection (2) includes a resolution deemed to occur by virtue of an order made following conversion of a voluntary arrangement or administration into winding up under Article 37 of the EC Regulation.”.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

13 Amendment to section 264

13Amendment to section 264

After section 264(1)(b) (Who may present a bankruptcy petition) insert—

“(ba)    by a temporary administrator (within the meaning of Article 38 of the EC Regulation),

(bb)    by a liquidator (within the meaning of Article 2(b) of the EC Regulation) appointed in proceedings by virtue of Article 3(1) of the EC Regulation,”.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

14 Amendment to section 265

14Amendment to section 265

After section 265(2) (Conditions to be satisfied in respect of debtor) insert—

“(3)    This section is subject to Article 3 of the EC Regulation.”.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

15 Amendment to section 330

15Amendment to section 330

After section 330(5) (Final distribution) insert—

“(6)    Subsection (5) is subject to Article 35 of the EC Regulation (surplus in secondary proceedings to be transferred to main proceedings).”.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

16 Amendments to section 387

16Amendments to section 387

In section 387(3) (Relevant date in relation to preferential debts)—

(a)    after paragraph (a) insert—

“(aa)    if the winding up is by the court and the winding-up order was made following conversion of administration into winding up by virtue of Article 37 of the EC Regulation, the relevant date is the date of the making of the administration order;

(ab)    if the company is deemed to have passed a resolution for voluntary winding up by virtue of an order following conversion of administration into winding up under Article 37 of the EC Regulation, the relevant date is the date of the making of the administration order;”,

(b)    in paragraph (b) after “paragraph (a)” insert “, (aa) or (ab)”, and

(c)    in paragraph (c) for “either paragraph (a) or (b)” substitute—

“paragraph (a), (aa), (ab) or (b)”.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

Liquidation99 Insolvency Law99

17 Amendment to section 388

17Amendment to section 388

After section 388(5) (Acting as an insolvency practitioner) insert—

“(6)    Nothing in this section applies to anything done (whether in the United Kingdom or elsewhere) in relation to insolvency proceedings under the EC Regulation in a member State other than the United Kingdom.”.

NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

18 Modified definition of property

18Modified definition of property

After section 436 (Expressions used generally) insert—

“Proceedings under EC Regulation:
modified definition of property436A
In the application of this Act to proceedings by virtue of Article 3 of the EC Regulation, a reference to property is a reference to property which may be dealt with in the proceedings.”.
NOTES
Initial Commencement
Specified date

Specified date: 31 May 2002: see reg 1.

Signature

Melanie Johnson,

Parliamentary Under-Secretary of State for Competition, Consumers and Markets,

Department of Trade and Industry

1st May 2002

EXPLANATORY NOTE

EXPLANATORY NOTE (This note is not part of the Regulations)

These Regulations are to make amendments to the Insolvency Act 1986 (c 45) (“the Act”) as a result of the adoption by the Council of the European Union of Council Regulation (EC) No 1346/2000 of 29th May 2000 on insolvency proceedings Official Journal No L160, 30.06.00. p 1 (“the EC Regulation”) which comes into force on 31st May 2002.

The EC Regulation aims to provide for the efficient and effective functioning of cross-border insolvency proceedings in the European Union. Information concerning the EC Regulation is provided in Guidance Notes issued by the Insolvency Service which may be found, together with the text of the EC Regulation, on the Insolvency Service website, the address of which is www.insolvency.gov.uk.

These Regulations provide amendments to the Act to ensure that provisions of domestic law do not conflict with the EC Regulation and generally to provide for it.

Amendments to the Act made by these Regulations provide that—

—companies in relation to which UK courts may open proceedings under the EC Regulation may take advantage of various procedures under the Act (Regulations 4, 5 and 9);

—the jurisdiction of the courts is clarified (Regulations 6, 7 and 10);

—provision is made to allow temporary administrators appointed by courts in other member States of the European Union and liquidators appointed in main proceedings to present winding up petitions and bankruptcy petitions (Regulations 8 and 13);

—provision is made to make it clear that the conditions which must be satisfied in order to enable a person to present a bankruptcy petition are subject to the EC Regulation (Regulation 14);

—the definition of “property” in the Act is modified (Regulation 18); and

—other technical amendments are provided for (Regulations 11, 12, 15, 16 and 17).

Bankruptcy Petitions99 Cross-border Insolvency92 Bankruptcy94 Insolvency Law94