Deregulation Bill (HC Bill 162)

(2) In subsection (2)—

(a) in the opening words omit “Except in the case of a licence granted by
virtue of subsection (2)(b) of section 129 of this Act,”;

(b) omit the “or” at the end of paragraphs (a) and (b);

(c) 5after paragraph (b) insert—

“(ba) that an assessor refused to grant him an emergency
control certificate on completing an emergency
control assessment of him following a requirement
imposed as mentioned in section 129(5ZA)(a), or”.

(3) 10Omit subsection (2A).

25 (1) Section 133A (assessment of ability to control a motor car in an emergency)
has effect as if it were amended as follows.

(2) In subsection (2)—

(a) in paragraph (a), for “class covered by his disabled person’s driving
15licence” substitute “prescribed class”;

(b) in paragraph (b), for “class covered by his disabled person’s driving
licence” substitute “prescribed class”;

(c) in the closing words, for “an appropriate” substitute “a”.

(3) In subsection (6)—

(a) 20in paragraph (a), for “class covered by his disabled person’s limited
driving licence” substitute “prescribed class”;

(b) in paragraph (b), for “class covered by his disabled person’s limited
driving licence” substitute “prescribed class”.

(4) In subsection (7)(a), omit “covered by his disabled person’s limited driving
25licence”.

(5) After subsection (9) insert—

“(10) In this Part, “modifications”, in relation to a motor car, includes
equipment.”

(6) In the heading, omit “disabled person’s”.

(7) 30In the italic cross-heading before section 133A omit “Disabled Persons:”.

26 (1) Section 133B (further assessments) is amended as follows.

(2) Omit subsection (1).

(3) After subsection (2) insert—

“(2A) A person may, for the purpose of obtaining an emergency control
35certificate, apply to undergo a further emergency control assessment
if—

(a) he has been required to submit himself for an emergency
control assessment under section 125(2C) or as mentioned in
section 125(5)(a)(ii),

(b) 40on completing that assessment, the assessor refused to grant
him an emergency control certificate, and

(c) the application for the further assessment is made in such
circumstances as may be prescribed.”

(4) Omit subsection (3).

(5) In subsection (4), for “subsection (1) above” substitute “subsection (5A)”.

(6) After subsection (5) insert—

“(5A) A person may not apply to undergo a further emergency control
assessment under subsection (4) until after the end of—

(a) 5the period of six months beginning with the date of his most
recent previous assessment, or

(b) such other period as may be prescribed by regulations.”

27 (1) Section 133C (duty to disclose further disability) has effect as if it were
amended as follows.

(2) 10In subsection (1)—

(a) for paragraph (a) substitute—

“(a) persons whose names are in the register, and”;

(b) in paragraph (b), omit “granted by virtue of subsection (2)(b) of that
section”.

(3) 15In subsection (2)(a), for “125A(3)” substitute “125(2A), 129(1A)”.

28 (1) Section 133D (offences relating to giving by disabled person of paid driving
instruction) has effect as if it were amended as follows.

(2) For subsection (1) substitute—

“(1) This section applies to—

(a) 20persons whose names are in the register, and

(b) persons who hold licences under section 129 of this Act,

who have undergone emergency control assessments in accordance
with a requirement imposed under section 125(2C) or 129(1B) or as
mentioned in section 125(5)(a)(ii) or 129(5ZA)(a).”

(3) 25After subsection (3) insert—

“(3A) Subsection (3) does not apply if the person to whom the instruction
is given holds a full licence granted under Part 3 which is not limited
by virtue of a notice served under section 92(5)(b).”

(4) In the heading, omit “by disabled person”.

29 (1) 30Section 142 (index to Part 5) has effect as if the index were amended as
follows.

(2) Omit the following expressions and the corresponding relevant
provisions—

• “Appropriate motor car”;

• 35“Disabled person’s limited driving licence”;

• “Registered disabled instructor”.

(3) In the entry for the expressions “disability, prospective disability and
relevant disability”, in the corresponding relevant provision, for “125A(8)”
substitute “125(10)”.

(4) 40In the entry for the expressions “emergency control assessment and
emergency control certificate”, in the corresponding relevant provision, for
“125A(8)” substitute “125(10)”.

Part 3 Consequential and related amendments

Road Traffic (Driving Instruction by Disabled Persons) Act 1993

30 (1) The Road Traffic (Driving Instruction by Disabled Persons) Act 1993 is
5amended as follows.

(2) Omit section 1 (registration of disabled persons as driving instructors).

(3) In section 2 (licences allowing disabled persons to give instruction so as to
obtain practical experience), omit subsection (4).

(4) In the Schedule (related and consequential amendments)—

(a) 10omit paragraph 5(4);

(b) omit paragraph 6(4) and (5);

(c) omit paragraph 7(4).

Road Traffic Offenders Act 1988

31 In Part 1 of Schedule 2 to the Road Traffic Offenders Act 1988 (prosecution
15and punishment of offences: offences under the Traffic Acts), as amended by
Schedule 6 to the Road Safety Act 2006, in the entry for section 125A(4) of the
Road Traffic Act 1988—

(a) for “125A(4)” substitute “125(3B)”;

(b) in the second column, omit “onset of, or deterioration in,”.

32 (1) 20Until the commencement of Schedule 6 to the Road Safety Act 2006, Part 1 of
Schedule 2 to the Road Traffic Offenders Act 1988 (prosecution and
punishment of offences: offences under the Traffic Acts) has effect as if it
were amended as follows.

(2) In the entry for section 125A(4) of the Road Traffic Act 1988—

(a) 25for “125A(4)” substitute “125(2B)”;

(b) in the second column, omit “onset of, or deterioration in,”.

Road Safety Act 2006

33 (1) In Schedule 6 to the Road Safety Act 2006, omit paragraphs 6 and 7.

Section 6

SCHEDULE 3 30Motor insurance industry: certificates of insurance

1 The Road Traffic Act 1988 is amended as follows.

2 In section 147 (issue and surrender of certificates of insurance and of
security”)—

(a) in subsection (1A), for the words from “this Part of this Act” to
35“subsection (1) above” substitute “subsection (1) as having been
delivered”;

(b) in the heading, omit “and surrender”.

3 In section 148 (avoidance of certain exceptions to policies or securities), in
subsection (1), for the words from “Where a certificate” to “has been given,”
substitute “Where a policy or security is issued or given for the purposes of
this Part of this Act,”.

4 (1) 5Section 151 (duty of insurers or persons giving security to satisfy judgment
against persons insured or secured against third-party risks) is amended as
follows.

(2) In subsection (1), for the words from “a certificate of insurance” to “security
has been given,” substitute “a policy or security is issued or given for the
10purposes of this Part of this Act,”.

(3) In subsection (2)(a), omit “to which the certificate relates”.

5 In section 152 (exceptions to section 151), in paragraph (c) of subsection (1),
omit the words from “, and also” to the end of the paragraph.

6 In section 153 (bankruptcy, etc, of insured or secured persons not to affect
15claims by third parties), in subsection (1), for the words from “a certificate of
insurance” to “security has been given,” substitute “a person has effected a
policy of insurance or been given a security for the purposes of this Part of
this Act,”.

7 In section 161 (interpretation), omit subsection (2).

Section 11

20SCHEDULE 4 Auditors ceasing to hold office

Part 1 Notification requirements

1 Chapter 4 of Part 16 of the Companies Act 2006 (audit: removal, resignation,
25etc of auditors) is amended in accordance with paragraphs 2 to 11.

2 Omit section 512 (notice to registrar of resolution removing auditor from
office).

3 In section 516 (resignation of auditor), in subsection (2), for “The” substitute
“Where the company is a public interest company, the”.

4 30Omit section 517 (notice to registrar of resignation of auditor).

5 (1) Section 518 (rights of resigning auditor) is amended as follows.

(2) In subsection (1), for the words from “auditor’s notice of resignation” to the
end of the subsection substitute “auditor’s (A’s) notice of resignation is
accompanied by a statement under section 519 except where—

“(a) 35the company is a non-public interest company, and

(b) the statement includes a statement to the effect that A
considers that none of the reasons for A’s ceasing to hold
office, and no matters (if any) connected with A’s ceasing to
hold office, need to be brought to the attention of members or
40creditors of the company (as required by section 519(3B)).”

(3) In subsection (2), for “circumstances connected with” substitute “reasons for,
and matters connected with,”.

(4) In subsection (3), in the words after paragraph (b), for “circumstances
connected with” substitute “reasons for, and matters connected with,”.

6 5In section 519 (statement by auditor to be deposited with company), in
subsection (4), for “The statement required by this section” substitute “A
statement under this section”.

7 (1) Section 520 (company’s duties in relation to statement under section 519) is
amended as follows.

(2) 10In subsection (1), for the words from “the statement” to the end of the
subsection substitute “a company receives from an auditor (“A”) who is
ceasing to hold office a statement under section 519 except where—

“(a) the company is a non-public interest company, and

(b) the statement includes a statement to the effect that A
15considers that none of the reasons for A’s ceasing to hold
office, and no matters (if any) connected with A’s ceasing to
hold office, need to be brought to the attention of members or
creditors of the company (as required by section 519(3B)).”

(3) In subsection (2), for “The” substitute “Where this section applies, the”.

8 (1) 20Section 521 (copy of statement to be sent to registrar) is amended as follows.

(2) Before subsection (1) insert—

“(A1) This section applies where an auditor (“A”) of a company sends a
statement to the company under section 519 except where—

(a) the company is a non-public interest company, and

(b) 25the statement includes a statement to the effect that A
considers that none of the reasons for A’s ceasing to hold
office, and no matters (if any) connected with A’s ceasing to
hold office, need to be brought to the attention of members or
creditors of the company (as required by section 519(3B)).”

(3) 30In subsection (1), for “Unless” substitute “Where this section applies,
unless”.

9 (1) Section 522 (duty of auditor to notify appropriate audit authority) is
amended as follows.

(2) For subsections (1) to (4) substitute—

“(1) 35Where an auditor of a company sends a statement under section 519,
the auditor must at the same time send a copy of the statement to the
appropriate audit authority.”

(3) In the heading, for “notify” substitute “send statement to”.

10 (1) Section 524 (information to be given to accounting authorities) is amended
40as follows.

(2) For subsection (1) substitute—

“(1) Where the appropriate audit authority receives a statement under
section 522 or 523, the authority may forward to the accounting
authorities—

(a) a copy of the statement or notice, and

(b) any other information the authority has received from the
auditor or the company concerned in connection with the
auditor’s ceasing to hold office.”

(3) 5Omit subsection (3).

(4) In the heading, for “Information to be given” substitute “Provision of
information”.

11 (1) Section 525 (meaning of “appropriate audit authority” and “major audit”) is
amended as follows.

(2) 10In subsection (1)—

(a) in paragraph (a)—

(i) for the words before sub-paragraph (i) substitute “in relation
to an auditor of a public interest company (other than an
Auditor General)”;

(ii) 15in sub-paragraph (ii), after “receiving the” insert “statement
or”;

(b) in paragraph (b), for the words from the beginning to “a major audit”
substitute “in relation to an auditor of a non-public interest company
(other than an Auditor General)”;

(c) 20in paragraph (c), for “in the case of an audit conducted by” substitute
“in relation to”.

(3) Omit subsections (2) and (3).

(4) In the heading, omit “and “major audit””.

12 (1) Schedule 8 to the Companies Act 2006 (index of defined expressions) is
25amended as follows.

(2) Omit the entry for “major audit”.

(3) At the appropriate places insert—

Part 2 Miscellaneous

13 40Chapter 4 of Part 16 of the Companies Act 2006 is further amended as
follows.

Failure to re-appoint auditor: special procedure requirements

14 (1) Section 514 (failure to re-appoint auditor: special procedure required for
written resolution) is amended as follows.

(2) 45For subsections (1) and (2) substitute—

“(1) This section applies where a resolution is proposed as a written
resolution of a private company whose effect would be to appoint a
person as auditor in place of a person (the “outgoing auditor”) who,
at the time the resolution is proposed, is an auditor of the company
50and who is to cease to hold office at the end of a period for
appointing auditors.

But this section does not apply if the auditor is to cease to hold office
by virtue of section 510 or 516.

(2) This section also applies where a resolution is proposed as a written
55resolution of a private company whose effect would be to appoint a
person as auditor where, at the time the resolution is proposed, the
company does not have an auditor and the person proposed to be
appointed is not a person (the “outgoing auditor”) who was an
auditor of the company when the company last had an auditor.

60But this is subject to subsection (2A).

(2A) This section does not apply (by virtue of subsection (2)) if—

(a) a period for appointing auditors has ended since the
outgoing auditor ceased to hold office,

(b) the outgoing auditor ceased to hold office by virtue of section
65510 or 516, or

(c) the outgoing auditor has previously had the opportunity to
make representations with respect to a proposed resolution
under subsection (4) of this section or an intended resolution
under section 515(4).”

(3) 70In subsection (3), for “The” substitute “Where this section applies, the”.

15 (1) Section 515 (failure to re-appoint auditor: special notice required for
resolution at general meeting) is amended as follows.

(2) For subsections (1) and (2) substitute—

“(1) Special notice is required for a resolution at a general meeting of a
75private company whose effect would be to appoint a person as
auditor in place of a person (the “outgoing auditor”) who, at the time
the notice is given, is an auditor of the company and who is to cease
to hold office at the end of a period for appointing auditors.

But special notice is not required under this subsection if the auditor
80is to cease to hold office by virtue of section 510 or 516.

(1A) Special notice is required for a resolution at a general meeting of a
public company whose effect would be to appoint a person as
auditor in place of a person (the “outgoing auditor”) who, at the time
the notice is given, is an auditor of the company and who is to cease
5to hold office at the end of an accounts meeting.

But special notice is not required under this subsection if the auditor
is to cease to hold office by virtue of section 510 or 516.

(2) Special notice is required for a resolution at a general meeting of a
company whose effect would be to appoint a person as auditor
10where, at the time the notice is given, the company does not have an
auditor and the person proposed to be appointed is not a person (the
“outgoing auditor”) who was an auditor of the company when the
company last had an auditor.

But this is subject to subsection (2A).

(2A) 15Special notice is not required under subsection (2) if—

(a) a period for appointing auditors has ended or (as the case
may be) an accounts meeting of the company has been held
since the outgoing auditor ceased to hold office,

(b) the outgoing auditor ceased to hold office by virtue of section
20510 or 516, or

(c) the outgoing auditor has previously had the opportunity to
make representations with respect to an intended resolution
under subsection (4) of this section or a proposed resolution
under section 514(4).”

(3) 25In subsection (3)—

(a) omit “such”;

(b) after “resolution” insert “mentioned in subsection (1), (1A) or (2)”.

Replacement of references to documents being deposited at the company’s registered office

16 (1) Section 516 (resignation of auditor) is amended as follows.

(2) 30In subsection (1), for the words from “depositing” to the end of the
subsection substitute “sending a notice to that effect to the company”.

(3) In subsection (3), for “deposited” substitute “received”.

17 (1) Section 518 (rights of resigning auditor) is amended as follows.

(2) In subsection (2)—

(a) 35for “deposit” substitute “send”;

(b) for “a signed” substitute “an authenticated”.

(3) In subsection (5), for “of the deposit of” substitute “on which the company
receives”.

18 (1) Section 519 (statement by auditor to be deposited with company) is
40amended as follows.

(2) In subsection (4), for “deposited” substitute “sent”.

(3) In the heading, for “deposited with” substitute “sent to”.

19 In section 520(2) (company’s duties in relation to statement), for “deposit”
substitute “receipt”.

20 In section 521(1) (copy of statement to be sent to registrar), for “deposited”
substitute “sent”.

Section 12

SCHEDULE 5 Insolvency and company law

5Part 1 Deeds of arrangement

Repeal of Deeds of Arrangement Act 1914

1 (1) The Deeds of Arrangement Act 1914 is repealed.

(2) In the Administration of Justice Act 1925, omit section 22 (which concerns
10registration of deeds of arrangement and is to be construed as one with the
Act of 1914).

2 (1) The following amendments are made in consequence of paragraph 1.

(2) In the Public Trustee Act 1906, in section 2(4), omit “, nor any trust under a
deed of arrangement for the benefit of creditors”.

(3) 15In the Trustee Act 1925, omit section 41(2).

(4) In the Law of Property Act 1925, in section 43(1), omit “, deed of
arrangement”.

(5) In the Law of Property (Amendment) Act 1926, in section 3(1)—

(a) omit “and property subject to a deed of arrangement”;

(b) 20omit “and the trustee under the deed respectively”.

(6) In the Administration of Justice Act 1965, in Schedule 1, omit the entry for
the Deeds of Arrangement Act 1914.

(7) In the Land Charges Act 1972—

(a) omit section 1(1)(d) and (6A)(e);

(b) 25omit section 7;

(c) in section 17(1), omit the definition of “deed of arrangement”.

(8) In the Magistrates’ Courts Act 1980, in Schedule 1, omit paragraph 16.

(9) In the Administration of Justice Act 1985—

(a) in section 16(1)(g), omit “or a deed of arrangement for the benefit of
30his creditors”;

(b) in section 17(2)(c), omit “or a deed of arrangement for the benefit of
his creditors”.

(10) In the Insolvency Act 1985, in Schedule 8, omit paragraph 2.

(11) In the Insolvency Act 1986—

(a) 35omit section 260(3);

(b) in section 263(5), omit the words from “This is without prejudice” to
the end of the subsection;

(c) omit section 263D(6);

(d) in section 372(1)—

(i) omit paragraph (c) and the “or” before it;

(ii) for “, the supervisor of the voluntary arrangement or the
5trustee under the deed of arrangement” substitute “or the
supervisor of the voluntary arrangement”;

(e) in section 379, omit “, and about proceedings in the course of that
year under the Deeds of Arrangement Act 1914”;

(f) in section 388(2)(b), omit “a deed of arrangement made for the
10benefit of his creditors or”;

(g) in Schedule 9, in paragraph 24(a), omit “and of jurisdiction under the
Deeds of Arrangement Act 1914”;

(h) in Schedule 14, omit the entries for the Deeds of Arrangement Act
1914.

(12) 15In the Taxation of Chargeable Gains Act 1992, in section 66(5), in the
definition of “deed of arrangement”, for the words from “the Deeds of
Arrangement Act 1914” to the end of the definition insert “an enactment
forming part of the law of Scotland or Northern Ireland which corresponds
to the Deeds of Arrangement Act 1914 applies”.

(13) 20In the Value Added Tax Act 1994, in section 81(4B)(e), omit “the Deeds of
Arrangement Act 1914 or”.

(14) In the Finance Act 2000—

(a) in Part 6 of Schedule 6, omit paragraph 75(2)(e)(i) and the “or”
following it;

(b) 25in Part 10 of Schedule 6, omit paragraph 120(7)(f)(i) and the “or”
following it.

(15) In the Finance Act 2001—

(a) omit section 37(7)(f)(i) and the “or” following it;

(b) in Schedule 8, omit paragraph 11(2)(e)(i) and the “or” following it.

(16) 30In the Land Registration Act 2002, in section 87—

(a) in subsection (1)(b), at the end insert “and”;

(b) omit subsection (1)(d) and the “and” before it;

(c) omit subsection (2)(b) and the “or” before it;

(d) omit subsection (5).

(17) 35In the Licensing Act 2003, in section 27(3)(c), omit “a deed of arrangement
made for the benefit of his creditors or”.

(18) In the Pensions Act 2004, omit section 121(2)(c).

(19) In the Constitutional Reform Act 2005—

(a) in Schedule 4, omit paragraph 19;

(b) 40in Part 2 of Schedule 11, in paragraph 4(3), omit the entry for the
Deeds of Arrangement Act 1914.

(20) In the Tribunals, Courts and Enforcement Act 2007, in Schedule 13, omit
paragraph 21.

(21) In the Finance Act 2008, in section 131(8), in the definition of “deed of
45arrangement”, omit “the Deeds of Arrangement Act 1914 (c. 47)Deeds of Arrangement Act 1914 (c. 47) or”.

(22) In the Third Parties (Rights against Insurers) Act 2010, omit section 4(1)(a).

3 The repeals and other amendments made by paragraphs 1 and 2 are to have
no effect in relation to a deed of arrangement registered under section 5 of
the Deeds of Arrangement Act 1914 before the date on which paragraph 1 of
5this Schedule comes into force if, immediately before that date, the estate of
the debtor who executed the deed of arrangement has not been finally
wound up.

Part 2 Administration of companies

4 10Schedule B1 to the Insolvency Act 1986 (administration of companies) is
amended in accordance with paragraphs 5 to 7.

Appointment of administrators

5 After paragraph 25 (circumstances in which an administrator of a company
may not be appointed under paragraph 22) and before the italic cross-
15heading following paragraph 25 insert—

“25A (1) Paragraph 25(a) does not prevent the appointment of an
administrator of a company if the petition for the winding up of
the company was presented after the person proposing to make
the appointment filed the notice of intention to appoint with the
20court under paragraph 27.

(2) But sub-paragraph (1) does not apply if the petition was presented
under a provision mentioned in paragraph 42(4).”

6 In paragraph 26 (notice by company, or directors of company, of intention to
appoint administrator), in sub-paragraph (2) (requirement to give additional
25notice), for “proposes to make an appointment under paragraph 22”
substitute “gives notice of intention to appoint under sub-paragraph (1)”.

Release of administrator where no distribution to unsecured creditors other than by virtue of
section 176A(2)(a)

7 (1) Paragraph 98 (vacation of office of administrator: discharge from liability) is
30amended as follows.

(2) In sub-paragraph (2)(b) (when discharge takes effect in case of administrator
appointed under paragraph 14 or 22), after “22” insert “who has not made a
statement under paragraph 52(1)(b)”.

(3) In sub-paragraph (2), after paragraph (b) (but before the “or” following it)
35insert—

“(ba) in the case of an administrator appointed under paragraph
14 or 22 who has made a statement under paragraph
52(1)(b), at a time decided by the relevant creditors,”.

(4) In sub-paragraph (3)—

(a) 40for the words before paragraph (a) substitute “For the purposes of
sub-paragraph (2)(ba), the “relevant creditors” of a company are—”;

(b) in paragraph (b), for “give or withhold approval” substitute “decide
on the time of discharge”.