Insolvency (Northern Ireland) Order 2002
| Jurisdiction | UK Non-devolved |
2002 No. 3152 (N.I. 6)
NORTHERN IRELAND
The Insolvency (Northern Ireland) Order 2002
17thDecember 2002
Arrangement of Order
Introductory
1. |
Title and commencement |
2. |
Interpretation |
Voluntary arrangements
3. |
Moratorium where directors propose voluntary arrangement |
4. |
Company voluntary arrangements |
5. |
Individual voluntary arrangements |
6. |
Qualification or authorisation of nominees and supervisors |
Miscellaneous
7. |
Administration orders |
8. |
Investigation and prosecution of malpractice |
9. |
Restriction on use of answers obtained under compulsion |
10. |
Insolvent estates of deceased persons |
11. |
Model law on cross-border insolvency |
General
12. |
Orders |
13. |
Repeals |
SCHEDULES:
Schedule 1 |
Moratorium where directors propose voluntary arrangement |
Schedule 2 |
Company voluntary arrangements |
Part I |
Amendments of the Insolvency Order |
Part II |
Amendments of the Building Societies Act 1986 |
Schedule 3 |
Individual voluntary arrangements |
Schedule 4 |
Repeals |
At the Court at Buckingham Palace, the 17th day of December 2002
Present,
The Queen's Most Excellent Majesty in Council
Whereas a draft of this Order in Council has been approved by resolution of each House of Parliament:
Now, therefore, Her Majesty, in exercise of the powers conferred by paragraph 1(1) of the Schedule to the Northern Ireland Act 2000 (c.1) and of all other powers enabling Her in that behalf, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows:-
Introductory
Title and commencement
1. - (1) This Order may be cited as the Insolvency (Northern Ireland) Order 2002.
(2) This Article and Articles 2(1) and (2), 11 and 12 shall come into operation on the expiration of one month from the day on which this Order is made.
(3) The other provisions of this Order shall come into operation on such day or days as the Department may by order appoint.
Interpretation
2. - (1) The Interpretation Act (Northern Ireland) 1954 (c. 33) applies to this Order as it applies to an Act of the Assembly.
(2) In this Order -
"the Department" means the Department of Enterprise, Trade and Investment;
"the Insolvency Order" means the Insolvency (Northern Ireland) Order 1989 (NI 19); and
"statutory provision" has the meaning given in section 1(f) of the Interpretation Act (Northern Ireland) 1954 (c. 33).
(3) For the purposes of the Financial Services and Markets Act 2000 (c. 8), the functions conferred on the Financial Services Authority by virtue of Schedules 1 and 2 are to be treated as conferred by that Act.
Voluntary arrangements
Moratorium where directors propose voluntary arrangement
3. Schedule 1 (which -
(a) enables the directors of a company to obtain an initial moratorium for the company where they propose a voluntary arrangement under Part II of the Insolvency Order,(b) makes provision about the approval and implementation of such a voluntary arrangement where a moratorium is obtained, and(c) makes consequential amendments),shall have effect.
Company voluntary arrangements
4. Schedule 2 (which -
(a) amends the provisions about company voluntary arrangements under Part II of the Insolvency Order, and(b) in consequence of Schedule 1 and those amendments, makes amendments to the Building Societies Act 1986 (c.53)),shall have effect.
Individual voluntary arrangements
5. Schedule 3 (which enables the procedure for the approval of individual voluntary arrangements under Chapter II of Part VIII of the Insolvency Order to be started without an initial moratorium for the insolvent debtor and makes other amendments of the provisions about individual voluntary arrangements) shall have effect.
Qualification or authorisation of nominees and supervisors
6. - (1) In Article 3 of the Insolvency Order (meaning of "act as insolvency practitioner") -
(a) for paragraph (1)(b) there shall be substituted -" (b) where a voluntary arrangement in relation to the company is proposed or approved under Part II, as nominee or supervisor.";
(b) for paragraph (2)(c) there shall be substituted -" (c) where a voluntary arrangement in relation to the individual is proposed or approved under Part VIII, as nominee or supervisor;"; and
(c) after paragraph (3) there shall be inserted -" (3A) In relation to a voluntary arrangement proposed under Part II or VIII, a person acts as nominee if he performs any of the functions conferred on nominees under the Part in question.".
(2) In Article 348 of the Insolvency Order (acting as insolvency practitioner without qualification), after paragraph (1) there shall be inserted -
" (1A) This Article is subject to Article 348A.".
(3) After that Article there shall be inserted -
Authorisation of nominees and supervisors
348A. - (1) Article 348 does not apply to a person acting, in relation to a voluntary arrangement proposed or approved under Part II or Part VIII, as nominee or supervisor if he is authorised so to act.
(2) For the purposes of paragraph (1) and those Parts, an individual to whom paragraph (3) does not apply is authorised to act as nominee or supervisor in relation to such an arrangement if -
(a) he is a member of a body recognised for the purpose by the Department, and(b) there is in force security for the proper performance of his functions and that security meets the prescribed requirements with respect to his so acting in relation to the arrangement.(3) This paragraph applies to a person if -
(a) he has been adjudged bankrupt or sequestration of his estate has been awarded and (in either case) he has not been discharged,(b) he is subject to - (i) a disqualification order made under Part II of the Companies (Northern Ireland) Order 1989 (NI 18), or(ii) a disqualification order made or a disqualification undertaking accepted under the Company Directors Disqualification (Northern Ireland) Order 2002 or the Company Directors Disqualification Act 1986 (c. 46), or(c) he is a patient within the meaning of Part VIII of the Mental Health (Northern Ireland) Order 1986 (NI 4), Part VII of the Mental Health Act 1983 (c. 20) or section 125(1) of the Mental Health (Scotland) Act 1984 (c. 36).(4) The Department may by order declare a body which appears to it to fall within paragraph (5) to be a recognised body for the purposes of paragraph (2)(a).
(5) A body may be recognised if it maintains and enforces rules for securing that its members -
(a) are fit and proper persons to act as nominees or supervisors, and(b) meet acceptable requirements as to education and practical training and experience.(6) For the purposes of this Article, a person is a member of a body only if he is subject to its rules when acting as nominee or supervisor (whether or not he is in fact a member of the body).
(7) An order made under paragraph (4) in relation to a body may be revoked by a further order if it appears to the Department that the body no longer falls within paragraph (5).
(8) An order of the Department under this Article has effect from such date as is specified in the order; and any such order revoking a previous order may make provision for members of the body in question to continue to be treated as members of a recognised body for a specified period after the revocation takes effect.".
Miscellaneous
Administration orders
7. - (1) Part III of the Insolvency Order (administration orders) shall be amended as follows.
(2) In Article 23 (effect of application), after sub-paragraph (a) of paragraph (1) there shall be inserted -
" (aa) no landlord or other person to whom rent is payable may exercise any right of forfeiture by peaceable re-entry in relation to premises let to the company in respect of a failure by the company to comply with any term or condition of its tenancy of such premises, except with the leave of the High Court and subject to such terms as the Court may impose".
(3) In Article 24 (effect of order), after sub-paragraph (b) of paragraph (3) there shall be inserted -
" (ba) no landlord or other person to whom rent is payable may exercise any right of forfeiture by peaceable re-entry in relation to premises let to the company in respect of a failure by the company to comply with any term or condition of its tenancy of such premises, except with the consent of the administrator or the leave of the High Court and subject (where the Court gives leave) to such terms as the Court may impose;".
Investigation and prosecution of malpractice
8. - (1) Article 182 of the Insolvency Order (prosecution of delinquent officers and members of company) shall be amended as follows.
(2) In paragraph (1), for the words from "the Director" to the end there shall be substituted "the Department".
(3) In paragraph (3), for sub-paragraphs (a) and (b) there shall be substituted -
" (a) forthwith report the matter to the Department, and
(b) furnish to the Department such information and give to it such access to and facilities for inspecting and taking copies of documents (being information or documents in the possession or under the control of the liquidator and relating to the matter in question) as the Department requires.".(4) For paragraph (4) there shall be substituted -
" (4) Where a report is made to the Department under paragraph (3), the Department may, for the purpose of investigating the matter reported to it and such other matters relating to the affairs of the company as appear to it to require investigation, exercise any of the powers which are exercisable by inspectors appointed under Article 424 or 425 of the Companies Order to investigate a company's affairs.".
(5) In paragraph (5)(b), "to the prosecuting authority" shall be omitted.
(6) In Article 183 of that Order (obligations arising under Article 182) -
(a) in paragraph (1), for "under Article 182(4)" there shall be substituted "in consequence of a report made to it under Article 182(3)" and for "that paragraph" there shall be substituted "Article 182(4)";(b) in paragraph (3), for "the prosecuting authority" and...To continue reading
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