SCHEDULE 1
Regulation 2
SCHEDULE 1
PART 1
Application of Schedule B1 to registered societies
1. Introductory
(1) The applicable provisions of Schedule B1 to the Insolvency Act 1986 are to have effect in relation to a housing administration order that applies to a registered society as they have effect in relation to an administration order under that Schedule that applies to a company, but with the modifications set out in this Schedule.
(2) The applicable provisions of Schedule B1 to the Insolvency Act 1986 are paragraphs 1, 40 to 49, 54, 59 to 68, 70 to 79, 83 to 91, 98 to 107, 109 to 111 and 112 to 116.
General modifications of the applicable provisions
2. Those paragraphs are to have effect as if—
(a) for “administration application”, in each place, there were substituted “housing administration application”,
(b) for “administration order”, in each place, there were substituted “housing administration order”,
(c) for “administrator”, in each place (other than paragraph 75(2)(ba) for which see paragraph 17 below), there were substituted “housing administrator”,
(d) for “enters administration”, in each place, there were substituted “enters housing administration”,
(e) for “in administration”, in each place, there were substituted “in housing administration”, and
(f) for “purpose of administration”, in each place (other than in paragraph 111(1)), there were substituted “objectives of the housing administration”.
3. Those paragraphs also have effect as if—
(a) a reference to the articles of a company were a reference to the rules of a registered society;
(b) a reference to a company included a reference to a registered society;
(c) a reference to a company’s creditors did not include a reference to a member of a registered society to whom an amount is owed by the society if, but only insofar as, the amount concerned is owed in respect of the member’s shares,
(d) a reference to the directors of a company were a reference to the members of the committee of a registered society,
(e) a reference to a member of a company were a reference to a person whose name is entered as a member in the register kept by a registered society in accordance with section 30(1) of the Co-operative and Community Benefit Societies Act 20148,
(f) a reference to an officer of a company were a reference to an officer of a registered society, and
(g) a reference to the registrar of companies is a reference to the Financial Conduct Authority in its capacity as the authority responsible for the registration of a registered society under the Co-operative and Community Benefit Societies Act 2014.
Specific modifications
4. Paragraph 1 is to have effect as if—
(a) for sub-paragraph (1) there were substituted—
“1 In this Schedule “housing administrator”, in relation to a registered society, means a person appointed by the court for the purposes of a housing administration order to manage its affairs, business and property.”, and
(b) in sub-paragraph (2), for “Act” there were substituted “Schedule”.
5. Paragraph 40 is to have effect as if sub-paragraphs (1)(b), (2) and (3) were omitted.
6. Paragraph 42 is to have effect as if sub-paragraphs (4) and (5) were omitted.
7. Paragraph 44 is to have effect as if sub-paragraphs (2) to (4), (6) and 7(a) to (c) were omitted.
8. Paragraph 46 is to have effect as if—
(a) in sub-paragraph (2)(a), after “company” there were inserted—
“(aa)
“(aa) every member of the registered society”, and
(b) in sub-paragraph (6) for paragraphs (a) to (c) there were substituted “the date on which the housing administration order comes into force”.
9. Paragraph 49 is to have effect as if—
(a) in sub-paragraph (2)(b) for “objective mentioned in paragraph 3(1)(a) or (b) cannot be achieved” there were substituted “objectives of the housing administration should be achieved by means other than just a rescue of the registered society as a going concern”,
(b) sub-paragraph (3) were omitted,
(c) before sub-paragraph (4) there were inserted—
“3A Proposals under this paragraph may include provision for amending the society’s rules but only if the Financial Conduct Authority has issued a statement to the effect that it would register an amendment in the terms proposed if copies were given to it for registration in accordance with section 16 of the Co-operative and Community Benefit Societies Act 2014 (“the 2014 Act”).
3B The proposals must not include any measure which would be contrary to the provisions of the 2014 Act or the Credit Unions Act 19799.
3C Sub-paragraph (3A) does not apply if the intended effect of the proposals is that the society will cease to be a registered society (within the meaning given by section 1(1) of the 2014 Act).”
(d) in sub-paragraph (4), after paragraph (a) there were inserted—
“(aa)
“(aa) to the Secretary of State and the Regulator of Social Housing,”.
10. Paragraph 54 is to have effect as if the following were substituted for it—
“54.—(1) The housing administrator of a registered society may on one or more occasions revise the proposals included in the statement made under paragraph 49 in relation to the registered society.
(2) If the housing administrator thinks that a revision is substantial, the housing administrator must send a copy of the revised proposals—
(a)
(a) to the Financial Conduct Authority,
(b)
(b) to the Secretary of State and the Regulator of Social Housing,
(c)
(c) to every creditor of the registered society, other than an opted-out creditor, of whose claim and address the housing administrator is aware, and
(d)
(d) to every member of the registered society of whose address the housing administrator is aware.
(3) A copy sent in accordance with sub-paragraph (2) must be sent within the prescribed period.
(4) The housing administrator is to be taken to have complied with sub-paragraph (2)(d) if the housing administrator publishes, in the prescribed manner, a notice undertaking to provide a copy of the revised proposals free of charge to any member of the registered...