Insolvency Regulations 1994
| Jurisdiction | UK Non-devolved |
| Citation | SI 1994/2507 |
| Year | 1994 |
1994 No. 2507
INSOLVENCYCOMPANIESINDIVIDUALS, ENGLAND AND WALES
The Insolvency Regulations 1994
Made 26th September 1994
Laid before Parliament 28th September 1994
Coming into force 24th October 1994
The Secretary of State, in exercise of the powers conferred on him by Rule 12.1 of the Insolvency Rules 19861and sections 411 and 412 of, and paragraphs 27 of Schedule 8 and 30 of Schedule 9 to, the Insolvency Act 19862and of all other powers enabling him in that behalf, hereby makes the following Regulations:—
PART 1
GENERAL
Citation and commencement
1. These Regulations may be cited as the Insolvency Regulations 1994 and shall come into force on 24th October 1994.
Revocations
2. Subject to regulation 37 below, the Regulations listed in Schedule 1 to these Regulations are hereby revoked.
Interpretation and application
3.—(1) In these Regulations, except where the context otherwise requires—
“bank” means any authorised institution in England and Wales within the meaning of the Banking Act 19873or a European deposit-taker as defined in regulation 82(3) of the Banking Coordination (Second Council Directive) Regulations 19924that is to say a European authorised institution which has lawfully established a branch in the United Kingdom for the purpose of accepting deposits;
“bankrupt” means the bankrupt or his estate;
“company” means the company which is being wound up;
“creditors' committee” means any committee established under section 301;
“liquidation committee” means, in the case of a winding up by the court, any committee established under section 141 and, in the case of a creditors' voluntary winding up, any committee established under section 101;
“liquidator” includes, in the case of a company being wound up by the court, the official receiver when so acting;
“local bank” means any bank in, or in the neighbourhood of, the insolvency district, or the district in respect of which the court has winding-up jurisdiction, in which the proceedings are taken, or in the locality in which any business of the company or, as the case may be, the bankrupt is carried on;
“local bank account” means, in the case of a winding up by the court, a current account opened with a local bank under regulation 6(2) below and, in the case of a bankruptcy, a current account opened with a local bank under regulation 21(1) below;
“payment instrument” means a cheque or payable order;
“the Rules” means the Insolvency Rules 1986; and
“trustee”, subject to regulation 19(2) below, means trustee of a bankrupt’s estate including the official receiver when so acting;
and other expressions used in these Regulations and defined by the Rules have the meanings which they bear in the Rules.
(2) A Rule referred to in these Regulations by number means the Rule so numbered in the Rules.
(3) Any application to be made to the Secretary of State or to the Department or anything required to be sent to the Secretary of State or to the Department under these Regulations shall be addressed to the Department of Trade and Industry, The Insolvency Service, PO Box 3690, Birmingham B2 4UY.
(4) Where a regulation makes provision for the use of a form obtainable from the Department, the Department may provide different forms for different cases arising under that regulation.
(5) Subject to regulation 37 below, these Regulations apply—
(a)
(a) to winding-up proceedings commenced on or after 29th December 1986; and
(b)
(b) to bankruptcy proceedings where the bankruptcy petition is or was presented on or after that day.
PART 2
WINDING UP
Introductory
4. This Part of these Regulations relates to—
(a) voluntary winding up and
(b) winding up by the court
of companies which the courts in England and Wales have jurisdiction to wind up.
PAYMENTS INTO AND OUT OF THE INSOLVENCY SERVICES ACCOUNT
Payments into the Insolvency Services Account
5.—(1) In the case of a winding up by the court, subject to regulation 6 below, the liquidator shall pay all money received by him in the course of carrying out his functions as such without any deduction into the Insolvency Services Account kept by the Secretary of State with the Bank of England to the credit of the company once every 14 days or forthwith if £5,000 or more has been received.
(2) In the case of a voluntary winding up, the liquidator shall, within 14 days of the expiration of the period of 6 months from the date of his appointment and of every period of six months thereafter until he vacates office, pay into the Insolvency Services Account to the credit of the company the balance of funds in his hands or under his control relating to the company, including any unclaimed or undistributed assets or dividends, but excluding such part (if any) as he considers necessary to retain for the immediate purposes of the winding up.
(3) Every payment of money into the Insolvency Services Account under this regulation shall be—
(a)
(a) made through the Bank Giro system; or
(b)
(b) sent direct to the Bank of England, PO Box 3, Birmingham B2 5EY by cheque drawn in favour of the “Insolvency Services Account” and crossed “A/c payee only” “Bank of England”,
and the liquidator shall on request be given by the Department a receipt for the money so paid.
(4) Every payment of money under paragraphs (1) and (2) above shall be accompanied by a form obtainable from the Department for that purpose or by a form that is substantially similar.
(5) Where in a voluntary winding up a liquidator pays any unclaimed dividend into the Insolvency Services Account, he shall at the same time give notice to the Secretary of State, on a form obtainable from the Department or on one that is substantially similar, of the name and address of the person to whom the dividend is payable and the amount of the dividend.
Local bank account and handling of funds not belonging to the company
6.—(1) This regulation does not apply in the case of a voluntary winding up.
(2) Where the liquidator intends to exercise his power to carry on the business of the company, he may apply to the Secretary of State for authorisation to open a local bank account, and the Secretary of State may authorise him to make his payments into and out of a specified bank, subject to a limit, instead of into and out of the Insolvency Services Account if satisfied that an administrative advantage will be derived from having such an account.
(3) Money received by the liquidator relating to the purpose for which the account was opened may be paid into the local bank account to the credit of the company to which the account relates.
(4) Where the liquidator opens a local bank account pursuant to an authorisation granted under paragraph (2) above, he shall open and maintain the account in the name of the company.
(5) Where money which is not an asset of the company is provided to the liquidator for a specific purpose, it shall be clearly identifiable in a separate account.
(6) The liquidator shall keep proper records, including documentary evidence of all money paid into and out of every local bank account opened and maintained under this regulation.
(7) The liquidator shall pay without deduction any surplus over any limit imposed by an authorisation granted under paragraph (2) above into the Insolvency Services Account in accordance with regulation 5 above as that regulation applies in the case of a winding up by the court.
(8) As soon as the liquidator ceases to carry on the business of the company or vacates office or an authorisation given in pursuance of an application under paragraph (2) above is withdrawn, he shall close the account and pay any balance into the Insolvency Services Account in accordance with regulation 5 above as that regulation applies in the case of a winding up by the court.
Payment of disbursements etc. out of the Insolvency Services Account
7.—(1) In the case of a winding up by the court, on application to the Department, the liquidator shall be repaid all necessary disbursements made by him, and expenses properly incurred by him, in the course of his administration to the date of his vacation of office out of any money standing to the credit of the company in the Insolvency Services Account.
(2) In the case of a winding up by the court, the liquidator shall on application to the Department obtain payment instruments to the order of the payee for sums which become payable on account of the company for delivery by the liquidator to the persons to whom the payments are to be made.
(3) In the case of a voluntary winding up, where the liquidator requires to make payments out of any money standing to the credit of the company in the Insolvency Services Account in respect of the expenses of the winding up, he shall apply to the Secretary of State who may either authorise payment to the liquidator of the sum required by him, or may direct payment instruments to be issued to the liquidator for delivery by him to the persons to whom the payments are to be made.
(4) Any application under this regulation shall be made by the liquidator on a form obtainable from the Department for the purpose or on a form that is substantially similar.
(5) In the case of a winding up by the court, on the liquidator vacating office, he shall be repaid by any succeeding liquidator out of any funds available for the purpose any necessary disbursements made by him and any expenses properly incurred by him but not repaid before he vacates office.
DIVIDENDS TO CREDITORS AND RETURNS OF CAPITAL TO CONTRIBUTORIES OF A COMPANY
Payment
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