The Insolvency of Registered Providers of Social Housing Regulations 2018

JurisdictionUK Non-devolved
CitationSI 2018/728

2018 No. 728

Housing

Insolvency

The Insolvency of Registered Providers of Social Housing Regulations 2018

Made 13th June 2018

Coming into force in accordance with regulation 1

The Secretary of State makes the following Regulations in exercise of the powers conferred by sections 102(2) and (3), 213 and 214(6) of the Housing and Planning Act 20161.

The Secretary of State considers that the modifications of insolvency legislation, as that legislation applies in relation to a registered society or a charitable incorporated organisation2, made by these Regulations are appropriate in connection with the provisions made by and under Chapter 5 of Part 4 of that Act.

A draft of these Regulations has been approved by a resolution of each House of Parliament in accordance with section 214(2) of that Act.

S-1 Citation and commencement

Citation and commencement

1. These Regulations may be cited as the Insolvency of Registered Providers of Social Housing Regulations 2018 and come into force 21 days after the date on which they are made.

S-2 Application of the Insolvency Act 1986 to registered societies

Application of the Insolvency Act 1986 to registered societies

2.—(1) Schedule 1 applies to housing administration orders in relation to a registered society as follows.

(2) Part 1 of Schedule 1 applies certain provisions of Schedule B1 to the Insolvency Act 19863with the modifications specified.

(3) Part 2 of Schedule 1 modifies section 129(1A) of the Insolvency Act 19864in connection with Part 1 of Schedule 1.

S-3 Amendment of the Charitable Incorporated Organisations (Insolvency and Dissolution) Regulations 2012

Amendment of the Charitable Incorporated Organisations (Insolvency and Dissolution) Regulations 2012

3.—(1) The Charitable Incorporated Organisations (Insolvency and Dissolution) Regulations 20125(“the CIO Regulations”) are amended as follows.

(2) In regulation 2(1), at the appropriate place, insert ““CIO” has the same meaning as set out in section 204 of the Charities Act 20116;”.

(3) In regulation 3—

(a)

(a) in the heading, after “CIOs” insert “: general”,

(b)

(b) for “The Schedule” substitute “Schedule 1”.

(4) After regulation 3, insert—

S-3A

Application of the Insolvency Act 1986 to CIOs in housing administration

3A.—(1) Schedule 2 (which contains additional provision about the application of Schedule B1 and certain other legislation to housing administration orders in relation to CIOs) has effect.

(2) “Housing administration order” has the meaning given in section 95 of the Housing and Planning Act 2016.”.

(5) The Schedule becomes Schedule 1.

(6) The Schedule set out at Schedule 2 to these Regulations is inserted as Schedule 2 to the CIO Regulations.

S-4 Modification of the Land Registration Rules 2003

Modification of the Land Registration Rules 2003

4. After rule 184 of the Land Registration Rules 20037, insert—

S-184A

Housing administration orders

184A.—(1) Paragraph (2) applies where a housing administration order is made under the Housing and Planning Act 2016 in relation to a registered provider which is the registered proprietor of a registered estate or a registered charge.

(2) Upon the application of the registered provider’s housing administrator, supported by the order, the registrar must make an entry in the individual register of the relevant registered title as to the making of the order and the appointment of the housing administrator.

(3) In this rule “housing administration order”, “housing administrator” and “registered provider” have the meanings set out in Chapter 5 of Part 4 of the Housing and Planning Act 2016.”

Dominic Raab

Minister of State

Ministry of Housing, Communities and Local Government

13th June 2018

SCHEDULE 1

Regulation 2

SCHEDULE 1

1 Application of Schedule B1 to registered societies

PART 1

Application of Schedule B1 to registered societies

SCH-1.1

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

General modifications of the applicable provisions

SCH-1.2

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”.

SCH-1.3

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

Specific modifications

SCH-1.4

4. Paragraph 1 is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

SCH-1.1

“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”.

SCH-1.5

5. Paragraph 40 is to have effect as if sub-paragraphs (1)(b), (2) and (3) were omitted.

SCH-1.6

6. Paragraph 42 is to have effect as if sub-paragraphs (4) and (5) were omitted.

SCH-1.7

7. Paragraph 44 is to have effect as if sub-paragraphs (2) to (4), (6) and 7(a) to (c) were omitted.

SCH-1.8

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”.

SCH-1.9

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—

SCH-1.3A

“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”).

SCH-1.3B

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.

SCH-1.3C

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,”.

SCH-1.10

10. Paragraph 54 is to have effect as if the following were substituted for it—

SCH-1.54

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...

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