Deregulation Bill (HC Bill 191)

Measures affecting the workplace: general

1 Health and safety at work: general duty of self-employed persons

(1) Section 3 of the Health and Safety at Work etc. Act 1974 (general duty of
employers and self-employed to persons other than their employees) is
5amended in accordance with subsection (2).

(2) In subsection (2) (which imposes a general duty with respect to health and
safety on self-employed persons)—

(a) after “self-employed person” insert “who conducts an undertaking of a
prescribed description”;

(b) 10for “his undertaking” substitute “the undertaking”.

(3) In section 11 of that Act (functions of the Executive), after subsection (4A)
insert—

“(4AA) Subsection (4)(b)(i) does not apply in relation to the making of
regulations under section 3(2) for the railway safety purposes (and,
15accordingly, the Executive shall submit under subsection (3) such
proposals as the Executive considers appropriate for the making of
regulations under section 3(2) for those purposes).”

(4) Where this section comes into force at a time when there is in force an Order in
Council made under section 84(3) of the Health and Safety at Work etc. Act

1974 that applies section 3 or 11 of that Act to matters outside Great Britain, that
Order is to be taken as applying that section as amended by this section.

2 Removal of employment tribunals’ power to make wider recommendations

(1) In section 124 of the Equality Act 2010 (remedies available to an employment
5tribunal in discrimination cases etc), in subsection (3) (which describes the
recommendations that an employment tribunal may make)—

(a) in the opening words, after “adverse effect” insert “on the
complainant”;

(b) omit paragraphs (a) and (b).

(2) 10In consequence of subsection (1)—

(a) in section 124(7) of that Act omit “in so far as it relates to the
complainant”;

(b) omit section 125 of that Act (remedies: national security).

3 Apprenticeships: simplification

(1) 15Schedule 1 makes provision about apprenticeships.

(2) Part 1 of the Schedule amends Part 1 of the Apprenticeships, Skills, Children
and Learning Act 2009 (“the 2009 Act”) so as to simplify the provision made by
that Part about English apprenticeships.

(3) Part 2 of the Schedule contains further amendments of the 2009 Act in
20consequence of the amendments made by Part 1.

(4) Part 3 of the Schedule contains minor amendments of the provision made by
Part 1 of the 2009 Act about Welsh apprenticeships.

4 English apprenticeships: funding arrangements

(1) The Secretary of State may make arrangements with the Commissioners for
25Her Majesty’s Revenue and Customs under which the Commissioners are
responsible for the administration of payments that may be made by the
Secretary of State to employers in connection with the provision by them of
opportunities for individuals to complete an approved English apprenticeship.

(2) The Commissioners may by regulations make provision as to the
30administration of payments where arrangements are made under subsection
(1).

(3) The regulations may, in particular, provide that the Commissioners may,
instead of making payments to employers—

(a) permit them to deduct equivalent amounts from payments that they
35are required to make to the Commissioners and that are of a kind
specified in regulations;

(b) provide them with vouchers of equivalent amounts which may be used
by them in connection with their provision of opportunities for
individuals to complete an approved English apprenticeship.

(4) 40The regulations may make different provision for different cases.

(5) The Secretary of State may disclose information to the Commissioners, or to a
person providing services to the Commissioners, for the purpose of
arrangements made under subsection (1).

(6) The Commissioners may disclose information obtained by them in connection
5with arrangements under subsection (1) to the Secretary of State, or to a person
providing services to the Secretary of State, for the purpose of the Secretary of
State’s functions in relation to approved English apprenticeships.

(7) Information disclosed under subsection (6) may not be disclosed by the
recipient of the information to any other person without the consent of the
10Commissioners.

(8) If a person discloses, in contravention of subsection (7), any revenue and
customs information relating to a person whose identity—

(a) is specified in the disclosure, or

(b) can be deduced from it,

15section 19 of the Commissioners for Revenue and Customs Act 2005 (wrongful
disclosure) applies in relation to that disclosure as it applies in relation to a
disclosure of such information in contravention of section 20(9) of that Act.

(9) Regulations under this section may be made only with the consent of the
Secretary of State.

(10) 20Regulations under this section must be made by statutory instrument.

(11) A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of either House of Parliament.

(12) In this section—

• “approved English apprenticeship” has the same meaning as in Chapter
  25A1 of the Apprenticeships, Skills, Children and Learning Act 2009 (see
  Schedule 1);

• “revenue and customs information relating to a person” has the same
  meaning as in section 19 of the Commissioners for Revenue and
  Customs Act 2005 (see section 19(2) of that Act).

5 30Requirements to wear safety helmets: exemption for Sikhs

(1) Section 11 of the Employment Act 1989 (exemption of Sikhs from requirements
as to wearing of safety helmets on construction sites) is amended in accordance
with subsections (2) to (10).

(2) In subsection (1), for “on a construction site” substitute “at a workplace”.

(3) 35In subsection (2), in paragraph (a), for “on a construction site” substitute “at a
workplace”.

(4) In subsection (5), in the opening words, for “on a construction site” substitute
“at a workplace”.

(5) After subsection (6) insert—

“(6A) 40This section does not apply to a Sikh who—

(a) works, or is training to work, in an occupation that involves (to
any extent) providing an urgent response to fire, riot or other
hazardous situations, and

(b) is at the workplace—

(i) to provide such a response in circumstances where the
wearing of a safety helmet is necessary to protect the
Sikh from a risk of injury, or

(ii) to receive training in how to provide such a response in
5circumstances of that kind.

(6B) This section also does not apply to a Sikh who—

(a) is a member of Her Majesty’s forces or a person providing
support to Her Majesty’s forces, and

(b) is at the workplace—

(i) 10to take part in a military operation in circumstances
where the wearing of a safety helmet is necessary to
protect the Sikh from a risk of injury, or

(ii) to receive training in how to take part in such an
operation in circumstances of that kind.”

(6) 15In subsection (7)—

(a) omit the definitions of “building operations”, “works of engineering
construction” and “construction site”;

(b) before the definition of “injury”, insert—

• ““Her Majesty’s forces” has the same meaning as in the
  20Armed Forces Act 2006;”;

(c) at the end insert—

• ““workplace” means any premises where work is being
  undertaken, including premises occupied or normally
  occupied as a private dwelling; and “premises” includes
  25any place and, in particular, includes—

  (a)

  any vehicle, vessel, aircraft or hovercraft,

  (b)

  any installation (including a floating installation
  or one resting on the seabed or its subsoil or on
  other land covered with water or its subsoil), and

  (c)

  30any tent or moveable structure.”

(7) In subsection (8), in paragraph (b), for “on a construction site” substitute “at a
workplace”.

(8) In subsection (9)—

(a) for “relevant construction site” substitute “relevant workplace”;

(b) 35for “construction site” (in the second place where it occurs) substitute
“workplace”.

(9) In subsection (10), for the words from ““relevant construction site” to the end
of the subsection substitute ““relevant workplace” means any workplace
where work is being undertaken if the premises and the activities being
40undertaken there are premises and activities to which the Health and Safety at
Work etc. Act 1974 applies by virtue of the Health and Safety at Work etc. Act
1974 (Application outside Great Britain) Order 2013.”

(10) In the sidenote, for “on construction sites” substitute “at workplaces”.

(11) Section 12 of that Act (protection of Sikhs from racial discrimination in
45connection with requirements as to wearing of safety helmets) is amended as
follows.

(12) In subsection (1)—

(a) in paragraph (a), for “on a construction site” substitute “at a
workplace”;

(b) in paragraph (b), for “on such a site” substitute “at such a workplace”.

(13) In subsection (3), for “Subsections (7) to (10)” substitute “Subsections (6A) to
5(10)”.

Measures affecting business: particular areas

6 Driving instructors

(1) Schedule 2 makes provision to simplify the regulation of driving instructors by
removing the separate system for the registration of disabled instructors.

(2) 10Part 1 of the Schedule contains amendments of Part 5 of the Road Traffic Act
1988 as amended by Schedule 6 to the Road Safety Act 2006.

(3) Part 2 of the Schedule contains transitory amendments of Part 5 of the Road
Traffic Act 1988 which have effect before the commencement of Schedule 6 to
the Road Safety Act 2006.

(4) 15Part 3 of the Schedule contains consequential and related amendments.

7 Motor insurers

(1) In Part 6 of the Road Traffic Act 1988 (compulsory insurance or security against
third-party risks), section 147 (issue and surrender of certificates of insurance
and of security) is amended as follows.

(2) 20In subsection (1), for “A policy of insurance shall be of no effect for the
purposes of this Part of this Act unless and until there is delivered by the
insurer” substitute “An insurer issuing a policy of insurance for the purposes
of this Part of this Act must deliver”.

(3) In subsection (2), for “A security shall be of no effect for the purposes of this
25Part of this Act unless and until there is delivered by the person giving the
security” substitute “A person giving a security for the purposes of this Part of
this Act must deliver”.

(4) Omit subsections (4) to (5) (obligation to surrender certificate following
cancellation of policy of insurance or security).

(5) 30Schedule 3 makes amendments in consequence of this section.

8 Private hire vehicles: circumstances in which driver’s licence required

(1) Section 46 of the Local Government (Miscellaneous Provisions) Act 1976
(vehicle, drivers’ and operators’ licences) is amended as follows.

(2) In subsection (1)(b), for “driver of any private hire vehicle” substitute “driver
35of any vehicle when it is in use as a private hire vehicle”.

(3) After subsection (1) insert—

“(1A) For the purposes of this Act, a reference to a vehicle being in use as a
private hire vehicle is a reference to a private hire vehicle which—

(a) is in use in connection with a hiring for the purpose of carrying
passengers; or

(b) is immediately available to an operator to carry out a booking
for a private hire vehicle.”

(4) 5After subsection (2) insert—

“(3) If, in any proceedings for an offence under this section in which it is
alleged that the defendant contravened subsection (1)(b), the
prosecution prove that a private hire vehicle was at any time being used
on a road to carry one or more passengers, it is to be presumed, unless
10the contrary is shown, that the vehicle was, at that time, in use in
connection with a hiring as mentioned in subsection (1A)(a).”

9 Taxis and private hire vehicles: duration of licences

(1) The Local Government (Miscellaneous Provisions) Act 1976 is amended as
follows.

(2) 15In section 53 (drivers’ licences for hackney carriages and private hire
vehicles)—

(a) in subsection (1)(a), for “for such lesser period as the district council
may specify in such licence” substitute “for such lesser period, specified
in the licence, as the district council think appropriate in the
20circumstances of the case”;

(b) in subsection (1)(b), for “for such lesser period as they may specify in
such licence” substitute “for such lesser period, specified in the licence,
as the district council think appropriate in the circumstances of the
case”.

(3) 25In section 55 (licensing of operators of private hire vehicles), for subsection (2)
substitute—

“(2) Every licence granted under this section shall remain in force for five
years or for such lesser period, specified in the licence, as the district
council think appropriate in the circumstances of the case.”

10 30Private hire vehicles: sub-contracting

In the Local Government (Miscellaneous Provisions) Act 1976, after section 55
insert—

“55A Sub-contracting by operators

(1) A person licensed under section 55 who has in a controlled district
35accepted a booking for a private hire vehicle may arrange for another
person to provide a vehicle to carry out the booking if—

(a) the other person is licensed under section 55 in respect of the
same controlled district and the sub-contracted booking is
accepted in that district;

(b) 40the other person is licensed under section 55 in respect of
another controlled district and the sub-contracted booking is
accepted in that district;

(c) the other person is a London PHV operator and the sub-
contracted booking is accepted at an operating centre in
45London; or

(d) the other person accepts the sub-contracted booking in
Scotland.

(2) It is immaterial for the purposes of subsection (1) whether or not sub-
contracting is permitted by the contract between the person licensed
5under section 55 who accepted the booking and the person who made
the booking.

(3) Where a person licensed under section 55 in respect of a controlled
district is also licensed under that section in respect of another
controlled district, subsection (1) (so far as relating to paragraph (b) of
10that subsection) and section 55B(1) and (2) apply as if each licence were
held by a separate person.

(4) Where a person licensed under section 55 in respect of a controlled
district is also a London PHV operator, subsection (1) (so far as relating
to paragraph (c) of that subsection) and section 55B(1) and (2) apply as
15if the person holding the licence under section 55 and the London PHV
operator were separate persons.

(5) Where a person licensed under section 55 in respect of a controlled
district also makes provision in the course of a business for the
invitation or acceptance of bookings for a private hire car or taxi in
20Scotland, subsection (1) (so far as relating to paragraph (d) of that
subsection) and section 55B(1) and (2) apply as if the person holding the
licence under section 55 and the person making the provision in
Scotland were separate persons.

In this subsection, “private hire car” and “taxi” have the same meaning
25as in sections 10 to 22 of the Civic Government (Scotland) Act 1982.

In this subsection, “private hire car” and “taxi” have the same meaning
as in sections 10 to 22 of the Civic Government (Scotland) Act 1982.

(6) In this section, “London PHV operator” and “operating centre” have
the same meaning as in the Private Hire Vehicles (London) Act 1998.

55B 30Sub-contracting by operators: criminal liability

(1) In this section—

• “the first operator” means a person licensed under section 55 who
  has in a controlled district accepted a booking for a private hire
  vehicle and then made arrangements for another person to
  35provide a vehicle to carry out the booking in accordance with
  section 55A(1);

• “the second operator” means the person with whom the first
  operator made the arrangements (and, accordingly, the person
  who accepted the sub-contracted booking).

(2) 40The first operator is not to be treated for the purposes of section 46(1)(e)
as operating a private hire vehicle by virtue of having invited or
accepted the booking.

(3) The first operator is guilty of an offence if—

(a) the second operator is a person mentioned in section 55A(1)(a)
45or (b),

(b) the second operator contravenes section 46(1)(e) in respect of
the sub-contracted booking, and

(c) the first operator knew that the second operator would
contravene section 46(1)(e) in respect of the booking.”

11 Agricultural Holdings Act 1986: resolution of disputes by third party
determination

Schedule 4 amends the Agricultural Holdings Act 1986 to provide for certain
matters arising under the Act to be capable of third party determination.

12 5Shippers etc of gas

(1) In Part 1 of the Energy Act 2008 (gas importation and storage), after section 3
insert—

“3A Exception for unloading to an installation in certain circumstances

The prohibition in section 2(1) does not apply to a person (“A”) who
10uses a controlled place for the unloading of gas to an installation if—

(a) the installation is maintained by another person (“B”) who has
a licence in respect of the maintenance of the installation and the
use of a controlled place for the unloading of gas to it, and

(b) B consents to the use by A of the controlled place for the
15unloading of gas to the installation.”

(2) In consequence of subsection (1), in section 2(2) of the 2008 Act, for “section 3”
substitute “sections 3 and 3A”.

13 Suppliers of fuel and fireplaces

(1) Part 3 of the Clean Air Act 1993 (smoke control areas) is amended as follows.

(2) 20In section 20 (offence of emitting smoke in smoke control area where emission
caused by use of fuel other than authorised fuel), after subsection (5) insert—

“(5ZA) In the application of this Part to England, “authorised fuel” means a
fuel included in a list of authorised fuels kept by the Secretary of State
for the purposes of this Part.

(5ZB) 25The Secretary of State must—

(a) publish the list of authorised fuels, and

(b) publish a revised copy of the list as soon as is reasonably
practicable after any change is made to it.

(5ZC) The list must be published in such manner as the Secretary of State
30considers appropriate.”

(3) In that section, in subsection (6) as it applies in relation to England and Wales
(definition of “authorised fuel”), for “In” substitute “Except as provided by
subsection (5ZA), in”.

(4) In section 21 (power by order to exempt certain fireplaces), at the beginning
35insert—

“(A1) For the purposes of the application of this Part to England, the Secretary
of State may exempt any class of fireplace from the provisions of section
20 (prohibition of smoke emissions in smoke control area) if he is
satisfied that such fireplaces can be used for burning fuel other than
40authorised fuels without producing any smoke or a substantial
quantity of smoke.

(A2) An exemption under subsection (A1) may be made subject to such
conditions as the Secretary of State considers appropriate.

(A3) The Secretary of State must—

(a) publish a list of those classes of fireplace that are exempt under
5subsection (A1) including details of any conditions to which an
exemption is subject;

(b) publish a revised copy of the list as soon as is reasonably
practicable after any change is made to the classes of fireplace
that are so exempt or to the conditions to which an exemption is
10subject.

(A4) The list must be published in such manner as the Secretary of State
considers appropriate.”

(5) In that section as it applies in relation to England and Wales, the existing text
becomes subsection (5) and in that subsection, for “The” substitute “Except
15where subsection (A1) applies, the”.

(6) In the sidenote to that section, omit “by order”.

(7) In section 29 (interpretation of Part 3), in the definition of “authorised fuel”, for
“20(6)” substitute “20”.

14 Sellers of knitting yarn

(1) 20The Weights and Measures (Knitting Yarns) Order 1988 (S.I. 1988/895S.I. 1988/895)
(quantities in which yarn is to be sold) is revoked.

(2) In consequence of subsection (1), in the Weights and Measures (Specified
Quantities) (Pre-packed Products) Regulations 2009 (S.I. 2009/663S.I. 2009/663), omit
regulation 3.

25Companies and insolvency

15 Authorisation of insolvency practitioners

(1) Part 13 of the Insolvency Act 1986 (insolvency practitioners and their
qualification) is amended in accordance with subsections (2) to (4).

(2) In section 390 (persons not qualified to act as insolvency practitioners), for
30subsection (2) substitute—

“(2) A person is not qualified to act as an insolvency practitioner at any time
unless at that time the person is appropriately authorised under section
390A.”

(3) After section 390 insert—

“390A 35 Authorisation

(1) In this Part—

• “partial authorisation” means authorisation to act as an insolvency
  practitioner—

  (a)

  only in relation to companies, or

  (b)

  40only in relation to individuals;

Deregulation BillPage 10

• “full authorisation” means authorisation to act as an insolvency
  practitioner in relation to companies, individuals and insolvent
  partnerships;

• “partially authorised” and “fully authorised” are to be construed
  5accordingly.

(2) A person is fully authorised under this section to act as an insolvency
practitioner—

(a) by virtue of being a member of a professional body recognised
under section 391(1) and being permitted to act as an insolvency
10practitioner for all purposes by or under the rules of that body,
or

(b) by holding an authorisation granted by the Department of
Enterprise, Trade and Investment in Northern Ireland under
Article 352 of the Insolvency (Northern Ireland) Order 1989.

(3) 15A person is partially authorised under this section to act as an
insolvency practitioner—

(a) by virtue of being a member of a professional body recognised
under section 391(1) and being permitted to act as an insolvency
practitioner in relation only to companies or only to individuals
20by or under the rules of that body, or

(b) by virtue of being a member of a professional body recognised
under section 391(2) and being permitted to act as an insolvency
practitioner by or under the rules of that body.

390B Partial authorisation: acting in relation to partnerships

(1) 25A person who is partially authorised to act as an insolvency
practitioner in relation to companies may nonetheless not accept an
appointment to act in relation to a company if at the time of the
appointment the person is aware that the company —

(a) is or was a member of a partnership, and

(b) 30has outstanding liabilities in relation to the partnership.

(2) A person who is partially authorised to act as an insolvency
practitioner in relation to individuals may nonetheless not accept an
appointment to act in relation to an individual if at the time of the
appointment the person is aware that the individual—

(a) 35is or was a member of a partnership other than a Scottish
partnership, and

(b) has outstanding liabilities in relation to the partnership.

(3) Subject to subsection (9), a person who is partially authorised to act as
an insolvency practitioner in relation to companies may nonetheless
40not continue to act in relation to a company if the person becomes
aware that the company—

(a) is or was a member of a partnership, and

(b) has outstanding liabilities in relation to the partnership,

unless the person is granted permission to continue to act by the court.

(4) 45Subject to subsection (9), a person who is partially authorised to act as
an insolvency practitioner in relation to individuals may nonetheless
not continue to act in relation to an individual if the person becomes
aware that the individual—

(a) is or was a member of a partnership other than a Scottish
partnership, and

(b) has outstanding liabilities in relation to the partnership,

unless the person is granted permission to continue to act by the court.

(5) 5The court may grant a person permission to continue to act for the
purposes of subsection (3) or (4) if it is satisfied that the person is
competent to do so.

(6) A person who is partially authorised and becomes aware as mentioned
in subsection (3) or (4) may alternatively apply to the court for an order
10(a “replacement order”) appointing in his or her place a person who is
fully authorised to act as an insolvency practitioner in relation to the
company or (as the case may be) the individual.

(7) A person may apply to the court for permission to continue to act or for
a replacement order under—

(a) 15where acting in relation to a company, this section or, if it
applies, section 168(5B) (member of insolvent partnership:
England and Wales);

(b) where acting in relation to an individual, this section or, if it
applies, section 303(2C) (member of insolvent partnership:
20England and Wales).

(8) A person who acts as an insolvency practitioner in contravention of any
of subsections (1) to (4) is guilty of an offence under section 389 (acting
without qualification).

(9) A person does not contravene subsection (3) or (4) by continuing to act
25as an insolvency practitioner during the permitted period if, within the
period of 7 business days beginning with the day after the day on which
the person becomes aware as mentioned in the subsection, the person—

(a) applies to the court for permission to continue to act, or

(b) applies to the court for a replacement order.

(10) 30For the purposes of subsection (9)—

• “business day” means any day other than a Saturday, a Sunday,
  Christmas Day, Good Friday or a day which is a bank holiday
  in any part of Great Britain;

• “permitted period” means the period beginning with the day on
  35which the person became aware as mentioned in subsection (3)
  or (4) and ending on the earlier of—

  (a)

  the expiry of the period of 6 weeks beginning with the
  day on which the person applies to the court as
  mentioned in subsection (9)(a) or (b), and

  (b)

  40the day on which the court disposes of the application
  (by granting or refusing it);

• “replacement order” has the meaning given by subsection (6).”

(4) For section 391 (recognised professional bodies) substitute—

“391 Recognised professional bodies

(1) 45The Secretary of State may by order declare a body which appears to
the Secretary of State to meet the requirements of subsection (4) to be a
recognised professional body which is capable of providing its

insolvency specialist members with full authorisation or partial
authorisation.

(2) The Secretary of State may by order declare a body which appears to
the Secretary of State to meet the requirements of subsection (4) to be a
5recognised professional body which is capable of providing its
insolvency specialist members with partial authorisation only.

(3) An order under subsection (2) must state whether the partial
authorisation relates to companies or to individuals.

(4) The requirements are that the body—

(a) 10regulates the practice of a profession, and

(b) maintains and enforces rules for securing that its insolvency
specialist members—

(i) are fit and proper persons to act as insolvency
practitioners, and

(ii) 15meet acceptable requirements as to education and
practical training and experience.

(5) The Secretary of State may make an order revoking an order under
subsection (1) or (2) in relation to a professional body if it appears to the
Secretary of State that the body no longer meets the requirements of
20subsection (4).

(6) The Secretary of State may make an order revoking an order under
subsection (1) and replacing it with an order under subsection (2) in
relation to a professional body if it appears to the Secretary of State that
the body is capable of providing its insolvency specialist members with
25partial authorisation only.

(7) An order of the Secretary of State under this section has effect from such
date as is specified in the order.

(8) An order revoking an order made under subsection (1) or (2) may make
provision whereby members of the body in question continue to be
30treated as fully or partially authorised to act as insolvency practitioners
(as the case may be) for a specified period after the revocation takes
effect.

(9) In this section—

(a) references to members of a recognised professional body are to
35persons who, whether members of that body or not, are subject
to its rules in the practice of the profession in question (and the
references in section 390A to members of a recognised
professional body are to be read accordingly);

(b) references to insolvency specialist members of a professional
40body are to members who are permitted by or under the rules
of the body to act as insolvency practitioners.”

(5) In section 415A of the Insolvency Act 1986 (fees orders (general)), after
subsection (1) (fees for grant or maintenance of recognition of professional
body) insert—

“(1A) 45Fees under subsection (1) may vary according to whether the body is
recognised under section 391(1) (body providing full and partial

authorisation) or under section 391(2) (body providing partial
authorisation).”

(6) An order under section 391(1) of the Insolvency Act 1986 (recognised
professional bodies) made before the coming into force of this section is,
5following the coming into force of this section, to be treated as if it were made
under section 391(1) as substituted by subsection (4) of this section.

16 Auditors ceasing to hold office

(1) Chapter 4 of Part 16 of the Companies Act 2006 (audit: removal, resignation,
etc of auditors) is amended as follows.

(2) 10In section 519 (statement by auditor to be deposited with company on ceasing
to hold office), for subsections (1) to (3) substitute—

“(1) An auditor of a public interest company who is ceasing to hold office
(at any time and for any reason) must send to the company a statement
of the reasons for doing so.

(2) 15An auditor (“A”) of a non-public interest company who is ceasing to
hold office must send to the company a statement of the reasons for
doing so unless A satisfies the first or second condition.

(2A) The first condition is that A is ceasing to hold office—

(a) in the case of a private company, at the end of a period for
20appointing auditors;

(b) in the case of a public company, at the end of an accounts
meeting.

(2B) The second condition is that—

(a) A’s reasons for ceasing to hold office are all exempt reasons (as
25to which see section 519A(3)), and

(b) there are no matters connected with A’s ceasing to hold office
that A considers need to be brought to the attention of members
or creditors of the company.

(3) A statement under this section must include—

(a) 30the auditor’s name and address;

(b) the number allocated to the auditor on being entered in the
register of auditors kept under section 1239;

(c) the company’s name and registered number.

(3A) Where there are matters connected with an auditor’s ceasing to hold
35office that the auditor considers need to be brought to the attention of
members or creditors of the company, the statement under this section
must include details of those matters.

(3B) Where—

(a) an auditor (“A”) of a non-public interest company is required by
40subsection (2) to send a statement, and

(b) 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,

A’s statement under this section must include a statement to that
effect.”

(3) After section 519 insert—

“519A Meaning of “public interest company”, “non-public interest
5company” and “exempt reasons”

(1) In this Chapter—

• “public interest company” means a company—

  (a)

  any of whose transferable securities are included in the
  official list (within the meaning of Part 6 of the Financial
  10Services and Markets Act 2000), or

  (b)

  any of whose equity share capital is officially listed in an
  EEA state;

• “non-public interest company” means a company that is not a
  public interest company.

(2) 15For the purposes of the definition of “public interest company”,
“transferable securities” means anything which is a transferable
security for the purposes of Directive 2004/39/EC of the European
Parliament and of the Council on markets in financial instruments.

(3) In the application of this Chapter to an auditor (“A”) of a company
20ceasing to hold office, the following are “exempt reasons”—

(a) A is no longer to carry out statutory audit work within the
meaning of Part 42 (see section 1210(1));

(b) the company is, or is to become, exempt from audit under
section 477, 479A or 480, or from the requirements of this Part
25under section 482, and intends to include in its balance sheet a
statement of the type described in section 475(2);

(c) the company is a subsidiary undertaking of a parent
undertaking that is incorporated in the United Kingdom and—

(i) the parent undertaking prepares group accounts, and

(ii) 30A is being replaced as auditor of the company by the
auditor who is conducting, or is to conduct, an audit of
the group accounts;

(d) the company is being wound up under Part 4 of the Insolvency
Act 1986 or Part 5 of the Insolvency (Northern Ireland) Order
351989 (S.I. 1989/2405 (N.I. 19)S.I. 1989/2405 (N.I. 19)), whether voluntarily or by the
court, or a petition under Part 4 of that Act or Part 5 of that
Order for the winding up of the company has been presented
and not finally dealt with or withdrawn.

(4) But the reason described in subsection (3)(c) is only an exempt reason
40if the auditor who is conducting, or is to conduct, an audit of the group
accounts is also conducting, or is also to conduct, the audit (if any) of
the accounts of each of the subsidiary undertakings (of the parent
undertaking) that is incorporated in the United Kingdom and included
in the consolidation.

(5) 45The Secretary of State may by order amend the definition of “public
interest company” in subsection (1).

(6) An order under subsection (5) is subject to negative resolution
procedure.”

(4) In section 523 (duty of company to notify appropriate audit authority), for
subsections (1) to (3) substitute—

“(1) This section applies if an auditor is ceasing to hold office—

(a) in the case of a private company, at any time other than at the
5end of a period for appointing auditors;

(b) in the case of a public company, at any time other than at the
end of an accounts meeting.

(1A) But this section does not apply if the company reasonably believes that
the only reasons for the auditor’s ceasing to hold office are exempt
10reasons (as to which see section 519A(3)).

(2) Where this section applies, the company must give notice to the
appropriate audit authority that the auditor is ceasing to hold office.

(2A) The notice is to take the form of a statement by the company of what the
company believes to be the reasons for the auditor’s ceasing to hold
15office and must include the information listed in section 519(3).

This is subject to subsection (2C).

This is subject to subsection (2C).

(2B) Subsection (2C) applies where—

(a) the company receives a statement from the auditor under
20section 519,

(b) the statement is sent at the time required by section 519(4), and

(c) the company agrees with the contents of the statement.

(2C) Where this subsection applies, the notice may instead take the form of
a copy of the statement endorsed by the company to the effect that it
25agrees with the contents of the statement.

(3) A notice under this section must be given within the period of 28 days
beginning with the day on which the auditor ceases to hold office.”

(5) Schedule 5 (auditors ceasing to hold office) makes provision about the
following matters—

(a) 30the notification requirements that apply on an auditor ceasing to hold
office;

(b) the requirements that apply if there is a failure to re-appoint an auditor;

(c) the replacement of references to documents being deposited at a
company’s registered office.

17 35Insolvency and company law: miscellaneous

Schedule 6 makes provision about the following matters—

(a) deeds of arrangement;

(b) administration and winding up of companies;

(c) disqualification of unfit directors of insolvent companies;

(d) 40bankruptcy;

(e) insolvency practitioners;

(f) liabilities of administrators etc and preferential debts;

(g) appointment of proxies under company law.

Use of land

18 Recorded rights of way: additional protection

In the Countryside and Rights of Way Act 2000, after section 55 (bridleway
rights over ways shown as bridleways) insert—

“55A 5Other protected rights: England

(1) A surveying authority in England may not, at any time after the cut-off
date, make a modification to a definitive map and statement under
section 53(2)(b) of the Wildlife and Countryside Act 1981 if—

(a) the modification might affect the exercise of a protected right of
10way, and

(b) the only basis for the authority considering that the
modification is requisite is the discovery by the authority of
evidence that the right of way did not exist before 1 January
1949.

(2) 15In subsection (1), “protected right of way” means any right of way over
land shown in the definitive map and statement on the cut-off date as a
footpath, bridleway, restricted byway or byway open to all traffic.

(3) In this section, “cut-off date” has the meaning given in section 56.”

19 Unrecorded rights of way: protection from extinguishment

20In the Countryside and Rights of Way Act 2000, after section 56 (cut-off date for
extinguishment of certain unrecorded rights of way) insert—

“56A Unrecorded rights of way: protection from extinguishment

(1) The provision that may be made by regulations under section 56(2) by
the Secretary of State includes—

(a) 25provision enabling a surveying authority to designate, at any
time during the period of one year beginning with the cut-off
date, public rights of way in their area that were extinguished
immediately after that date, subject to any conditions or
exceptions specified in the regulations;

(b) 30provision for a designated right of way to cease to be regarded
as extinguished as from the time of the designation;

(c) provision requiring a surveying authority to determine, within
a period specified in the regulations, whether to make an order
under section 53(2) of the 1981 Act making modifications to a
35definitive map and statement to show a designated right of
way;

(d) provision as to the procedure applicable in relation to such a
determination, including provision for an application to be
made to a magistrates’ court where a surveying authority fails
40to make the determination within a period specified in the
regulations;

(e) provision for a designated right of way to be extinguished if a
surveying authority determines not to make an order under
section 53(2) of the 1981 Act or if such an order is made but is
45not confirmed or is quashed, subject to any exceptions specified
in the regulations;

(f) provision requiring a surveying authority to keep such
information as may be specified in the regulations about
designated rights of way in a separate part of the register
maintained by them under section 53B of the 1981 Act.

(2) 5The provision that may be made by virtue of subsection (1)(d) includes
provision applying Schedule 14A to the 1981 Act, subject to such
modifications as may be specified in the regulations.

(3) Regulations under section 56(2) made by the Secretary of State may also
provide—

(a) 10that an enactment specified in the regulations which would
otherwise apply in relation to a designated right of way does
not so apply, or so applies with modifications specified in the
regulations, in relation to times during the designation period
(see subsection (4) below);

(b) 15where an order under section 53(2) of the 1981 Act making
modifications to a definitive map and statement to show a
designated right of way takes effect, that the modifications are
to be treated, for the purposes of section 55A, as having taken
effect immediately before the cut-off date.

(4) 20In subsection (3)(a), “the designation period” means the period
which—

(a) begins when the right of way is designated, and

(b) ends when—

(i) an order under section 53(2) of the 1981 Act making
25modifications to a definitive map and statement to show
the right of way takes effect, or

(ii) if no such order is made, the right of way is extinguished
in accordance with the regulations.

(5) In this section—

• 30“cut-off date” has the meaning given in section 56;

• “enactment” means a provision of an Act or of subordinate
  legislation (within the meaning of the Interpretation Act 1978).”

20 Conversion of public rights of way to private rights of way

(1) In the Countryside and Rights of Way Act 2000, after section 56A (as inserted
35by section 19) insert—

“56B Conversion of certain public rights of way to private rights of way

(1) This section applies where—

(a) a public right of way over land in England would be
extinguished under section 53 immediately after the cut-off
40date, and

(b) on the cut-off date, the exercise of the right of way—

(i) is reasonably necessary to enable a person with an
interest in land to obtain access to it, or

(ii) would have been reasonably necessary to enable that
45person to obtain access to a part of that land if the person
had an interest in that part only.

(2) The public right of way becomes, immediately after the cut-off date, a
private right of way of the same description for the benefit of the land
or (as the case may be) the part of the land.

(3) For the purposes of subsection (1)(b), it is irrelevant whether the person
5is, on the cut-off date, in fact—

(a) exercising the existing public right of way, or

(b) able to exercise it.

(4) In this section, “cut-off date” has the meaning given in section 56.”

(2) In consequence of the amendments made by sections 18 and 19 and this
10section, in section 56 of the 2000 Act, in subsection (1), for “sections 53 and 55”
substitute “sections 53, 55, 55A, 56A and 56B”.

21 Applications by owners etc for public path orders

(1) The Highways Act 1980 is amended as follows.

(2) In section 118ZA(1) (which makes provision for owners, lessees or occupiers of
15certain land to be able to apply for a public path extinguishment order), after
“horses” insert “, or of any land in England of a prescribed description,”.

(3) In section 119ZA(1) (which makes provision for owners, lessees or occupiers of
certain land to be able to apply for a public path diversion order), after “horses”
insert “, or of any land in England of a prescribed description,”.

(4) 20In section 121E(1) (which specifies the duties of the Secretary of State on certain
appeals relating to the extinguishment or diversion of public paths), after
“section 121D(1)(a) above,” insert “in relation to an application made under
section 118C or 119C above or an application made under section 118ZA or
119ZA above to a council in Wales,”.

(5) 25After section 121E(1) insert—

“(1A) Where an appeal to the Secretary of State is brought under section
121D(1)(a) above, in relation to an application made under section
118ZA or 119ZA above to a council in England, the Secretary of State
shall either—

(a) 30determine not to make an order on the application, or