Insolvent Companies (Reports on Conduct of Directors) No. 2 Rules 1986
| Jurisdiction | UK Non-devolved |
1986 No. 2134
INSOLVENCY
COMPANIES
The Insolvent Companies (Reports on Conduct of Directors) No. 2 Rules 19864thDecember 1986
8thDecember 1986
29thDecember 1986
The Lord Chancellor, in exercise of his powers under section 106 of the Insolvency Act 1985(a), section 411 of the Insolvency Act 1986(b) and section 21 of the Company Directors Disqualification Act 1986(c), with the concurrence of the Secretary of State, and after consulting the committee existing for that purpose under section 413 of the Insolvency Act 1986, hereby makes the following Rules:—
Citation, commencement and interpretation
1.—(1) These Rules may be cited as the Insolvent Companies (Reports on Conduct of Directors) No. 2 Rules 1986.
(2) These Rules shall come into force on 29th December 1986, and that day is referred to in these Rules as "the commencement date".
(3) In these Rules references to "the Act" are references to the Company Directors Disqualification Act 1986.
Revocation
2. The Insolvent Companies (Reports on Conduct of Directors) Rules 1986(d) are hereby revoked.
Reports required under section 7(3) of the Act
3.—(1) This Rule applies to any report made to the Secretary of State under section 7(3) of the Act by:—
(a) the liquidator of a company registered in England and Wales which passes a resolution for voluntary winding up on or after the commencement date;
(b) an administrative receiver of a company appointed otherwise than under section 51 of the Insolvency Act 1986 (power to appoint receivers under the law of Scotland) on or after the commencement date; or
(a) 1985 c. 65.
(b) 1986 c. 45.
(c) 1986 c. 46.
(d) S.I. 1986/611.
(c) the administrator of a company registered in England and Wales in respect of which the court makes an administration order on or after the commencement date.
(2) Such a report shall be made in the Form D1, D2 or D6 set out in the Schedule hereto, as the case may be, and in the manner and to the extent required by the applicable form.
Return by office-holder
4.—(1) This Rule applies where it appears to a liquidator of a company as mentioned in Rule 3(1)(a), to an administrative receiver as mentioned in Rule 3(1)(b), or to an administrator as mentioned in Rule 3(1)(c) (each of whom is here referred to as "the office-holder") that the company has at any time become insolvent within the meaning of section 6(2) of the Act.
(2) Subject as follows there may be furnished to the Secretary of State by an office-holder at any time during the period of 6 months from the relevant date (defined in paragraph 4 below) a return with respect to every person who:—
(a) was, on the relevant date a director or shadow director of the company, or
(b) had been a director or shadow director of the company at any time in the 3 years immediately preceding that date.
(3) The return shall be made in the Form D3, D4, D5 or D7 set out in the Schedule hereto, as the case may be, and in the manner and to the extent required by the applicable form.
(4) For the purposes of this Rule, "the relevant date" means:—
(a) in the case of a company in creditors' voluntary winding up (there having been no declaration of solvency by the directors under section 89 of the Insolvency Act 1986) the date of the passing of the resolution for voluntary winding up,
(b) in the case of a company in members' voluntary winding up the date on which the liquidator forms the opinion that, at the time when the company went into liquidation, its assets were insufficient for the payment of its debts and other liabilities and the expenses of winding up,
(c) in the case of the administrative receiver, the date of his appointment,
(d) in the case of the administrator, the date of the administration order made in relation to the company,
and for the purposes of sub-paragraph (c) above the only appointment of an administrative receiver to be taken into account in determining the relevant date shall be that appointment which is not that of a successor in office to an administrative receiver who has vacated office either by death or pursuant to section 45 of the Insolvency Act 1986.
(5) It shall be the duty of the responsible office-holder to furnish a return complying with the provisions of paragraphs 3 and 4 of this Rule to the Secretary of State not later than the expiry of the period of 6 months from the relevant date where no return has been so furnished by a day one week before the expiry of that period: and for the purposes of this paragraph the responsible office-holder shall be the person in office in relation to the company on the day specified above or where no person is in office on that day the office-holder who vacated office nearest to that day.
(6) A return need not be provided under this Rule if an office-holder has, since the relevant date, made reports to the Secretary of State under section 7(3) of the Act with respect to all the persons falling within paragraph (2) and (apart from this paragraph) required to be the subject of return.
(7) If a responsible office-holder without reasonable excuse fails to comply with the duty imposed by paragraph (5) of the Rule, he is liable to a fine not exceeding £400 and, for continued contravention, to a daily default fine not exceeding £40.
Enforcement of section 7(4)
5.—(1) This Rule applies where under section 7(4) of the Act (power to call on liquidators, former liquidators and others to provide information) the Secretary of State or the official receiver requires a person:—
(a) to furnish him with information with respect to a person's conduct as director or shadow director of a company, and
(b) to produce and permit inspection of relevant books, papers and other records.
(2) On the application of the Secretary of State or (as the case may be) the official receiver, the court may make an order directing compliance within such period as may be specified.
(3) The court's order may provide that all costs of and incidental to the application shall be borne by the person to whom the order is directed.
Transitional provisions
6. Notwithstanding Rule 2 the provisions of Rules 2 and 3 of the Insolvent Companies (Reports on Conduct of Directors) Rules 1986 shall continue to apply, and have effect in relation to:—
(a) any report to which the provisions of Rule 2 of those Rules apply, and
(b) any interim return required to be made by Rule 3 of those Rules.
Hailsham of St Marylebone, C.
Dated 4th December 1986.
I concur,
Michael Howard, Parliamentary Under Secretary of State, Department of Trade and Industry.
Dated 4th December 1986.
Rules 3(2) and 4(3)
SCHEDULE
D1
COMPANIES IN VOLUNTARY LIQUIDATION
REPORT ON CONDUCT OF DIRECTORS UNDER SECTION 7(3) OF THE COMPANY DIRECTORS DISQUALIFICATION ACT 1986
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1. I am the liquidator of the company and it appears to me that the persons listed in the schedule were either directors or shadow directors of the company and were the only such directors of...
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