Insolvent Partnerships Order 1994

JurisdictionUK Non-devolved
CitationSI 1994/2421
Year1994

1994 No. 2421

INSOLVENCY

The Insolvent Partnerships Order 1994

Made 13th September 1994

Laid before Parliament 16th September 1994

Coming into force 1st December 1994

The Lord Chancellor, in exercise of the powers conferred on him by section 420(1) and (2) of the Insolvency Act 19861and section 21(2) of the Company Directors Disqualification Act 19862and of all other powers enabling him in that behalf, with the concurrence of the Secretary of State, hereby makes the following Order:—

GENERAL

PART I

GENERAL

S-1 Citation, commencement and extent

Citation, commencement and extent

1.—(1) This Order may be cited as the Insolvent Partnerships Order 1994 and shall come into force on 1st December 1994.

(2) This Order—

(a)

(a) in the case of insolvency proceedings in relation to companies and partnerships, relates to companies and partnerships which the courts in England and Wales have jurisdiction to wind up; and

(b)

(b) in the case of insolvency proceedings in relation to individuals, extends to England and Wales only.

(3) In paragraph (2) the term “insolvency proceedings” has the meaning ascribed to it by article 2 below.

S-2 Interpretation: definitions

Interpretation: definitions

2.—(1) In this Order, except in so far as the context otherwise requires—

“the Act” means the Insolvency Act 1986;

“agricultural charge” has the same meaning as in the Agricultural Credits Act 19283;

“agricultural receiver” means a receiver appointed under an agricultural charge;

“corporate member” means an insolvent member which is a company;

“the court”, in relation to an insolvent partnership, means the court which has jurisdiction to wind up the partnership;

“individual member” means an insolvent member who is an individual;

“insolvency order” means—

(a) in the case of an insolvent partnership or a corporate member, a winding-up order; and

(b) in the case of an individual member, a bankruptcy order;

“insolvency petition” means, in the case of a petition presented to the court—

(a) against a corporate member, a petition for its winding up by the court;

(b) against an individual member, a petition for a bankruptcy order to be made against that individual,

where the petition is presented in conjunction with a petition for the winding up of the partnership by the court as an unregistered company under the Act;

“insolvency proceedings” means any proceedings under the Act, this Order or the Insolvency Rules 19864

“insolvent member” means a member of an insolvent partnership, against whom an insolvency petition is being or has been presented;

“joint bankruptcy petition” means a petition by virtue of article 11 of this Order;

“joint debt” means a debt of an insolvent partnership in respect of which an order is made by virtue of Part IV or V of this Order;

“joint estate” means the partnership property of an insolvent partnership in respect of which an order is made by virtue of Part IV or V of this Order;

“joint expenses” means expenses incurred in the winding up of an insolvent partnership or in the winding up of the business of an insolvent partnership and the administration of its property;

“limited partner” has the same meaning as in the Limited Partnerships Act 19075;

“member” means a member of a partnership and any person who is liable as a partner within the meaning of section 14 of the Partnership Act 18906;

“officer”, in relation to an insolvent partnership, means—

(a) a member; or

(b) a person who has management or control of the partnership business;

“partnership property” has the same meaning as in the Partnership Act 1890;

“postponed debt” means a debt the payment of which is postponed by or under any provision of the Act or of any other enactment;

“responsible insolvency practitioner” means—

(a) in winding up, the liquidator of an insolvent partnership or corporate member; and

(b) in bankruptcy, the trustee of the estate of an individual member,

and in either case includes the official receiver when so acting;

“separate debt” means a debt for which a member of a partnership is liable, other than a joint debt;

“separate estate” means the property of an insolvent member against whom an insolvency order has been made;

“separate expenses” means expenses incurred in the winding up of a corporate member, or in the bankruptcy of an individual member; and

“trustee of the partnership” means a person authorised by order made by virtue of article 11 of this Order to wind up the business of an insolvent partnership and to administer its property.

(2) The definitions in paragraph (1), other than the first definition, shall be added to those in section 436 of the Act.

(3) References in provisions of the Act applied by this Order to any provision of the Act so applied shall, unless the context otherwise requires, be construed as references to the provision as so applied.

(4) Where, in any Schedule to this Order, all or any of the provisions of two or more sections of the Act are expressed to be modified by a single paragraph of the Schedule, the modification includes the combination of the provisions of those sections into the one or more sections set out in that paragraph.

S-3 Interpretation: expressions appropriate to companies

Interpretation: expressions appropriate to companies

3.—(1) This article applies for the interpretation in relation to insolvent partnerships of expressions appropriate to companies in provisions of the Act and of the Company Directors Disqualification Act 1986 applied by this Order, unless the contrary intention appears.

(2) References to companies shall be construed as references to insolvent partnerships and all references to the registrar of companies shall be omitted.

(3) References to shares of a company shall be construed—

(a)

(a) in relation to an insolvent partnership with capital, as references to rights to share in that capital; and

(b)

(b) in relation to an insolvent partnership without capital, as references to interests—

(i) conferring any right to share in the profits or liability to contribute to the losses of the partnership, or

(ii) giving rise to an obligation to contribute to the debts or expenses of the partnership in the event of a winding up.

(4) Other expressions appropriate to companies shall be construed, in relation to an insolvent partnership, as references to the corresponding persons, officers, documents or organs (as the case may be) appropriate to a partnership.

VOLUNTARY ARRANGEMENTS

PART II

VOLUNTARY ARRANGEMENTS

S-4 Voluntary arrangement of insolvent partnership

Voluntary arrangement of insolvent partnership

4.—(1) The provisions of Part I of the Act shall apply in relation to an insolvent partnership, those provisions being modified in such manner that, after modification, they are as set out in Schedule 1 to this Order.

(2) For the purposes of the provisions of the Act applied by paragraph (1), the provisions of the Act specified in paragraph (3) below, insofar as they relate to company voluntary arrangements, shall also apply in relation to insolvent partnerships.

(3) The provisions referred to in paragraph (2) are—

(a)

(a) section 233 in Part VI,

(b)

(b) Part VII, with the exception of section 250,

(c)

(c) Part XII,

(d)

(d) Part XIII,

(e)

(e) sections 411, 413, 414 and 419 in Part XV, and

(f)

(f) Parts XVI to XIX.

S-5 Voluntary arrangements of members of insolvent partnership

Voluntary arrangements of members of insolvent partnership

5.—(1) Where insolvency orders are made against an insolvent partnership and an insolvent member of that partnership in his capacity as such, Part I of the Act shall apply to corporate members and Part VIII to individual members of that partnership, with the modification that any reference to the creditors of the company or of the debtor, as the case may be, includes a reference to the creditors of the partnership.

(2) Paragraph (1) is not to be construed as preventing the application of Part I or (as the case may be) Part VIII of the Act to any person who is a member of an insolvent partnership (whether or not a winding-up order has been made against that partnership) and against whom an insolvency order has not been made under this Order or under the Act.

ADMINISTRATION ORDERS

PART III

ADMINISTRATION ORDERS

S-6 Administration order in relation to insolvent partnership

Administration order in relation to insolvent partnership

6.—(1) The provisions of Part II of the Act shall apply in relation to an insolvent partnership, certain of those provisions being modified in such manner that, after modification, they are as set out in Schedule 2 to this Order.

(2) For the purposes of the provisions of the Act applied by paragraph (1), the provisions of the Act specified in paragraph (3) below, insofar as they relate to administration orders, shall also apply in relation to insolvent partnerships.

(3) The provisions referred to in paragraph (2) are—

(a)

(a) section 212 in Part IV,

(b)

(b) Part VI,

(c)

(c) Part VII, with the exception of section 250,

(d)

(d) Part XIII,

(e)

(e) sections 411, 413, 414 and 419 in Part XV, and

(f)

(f) Parts XVI to XIX.

CREDITORS' ETC. WINDING-UP PETITIONS

PART IV

CREDITORS' ETC. WINDING-UP PETITIONS

S-7 Winding up of insolvent partnership as unregistered company on petition of creditor etc. where no concurrent petition presented against member

Winding up of insolvent partnership as unregistered company on petition of creditor etc. where no concurrent petition presented against member

7.—(1) Subject to paragraph (2) below, the provisions of Part V of the Act shall apply in relation to the winding up of an insolvent partnership as an unregistered company on the petition of a creditor, of a responsible insolvency practitioner or of the Secretary of State, where no insolvency petition is presented by the petitioner against a member or former member of that partnership in his capacity as such.

(2) Certain of the provisions referred to in paragraph (1) are modified in their application in relation to insolvent...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT