Deregulation Bill (HC Bill 5)

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
uses a controlled place for the unloading of gas to an installation if—

(a) 5the 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
unloading of gas to the installation.”

(2) 10In consequence of subsection (1), in section 2(2) of the 2008 Act, for “section 3”
substitute “sections 3 and 3A”.

15 Suppliers of fuel and fireplaces

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

(2) In section 20 (offence of emitting smoke in smoke control area where emission
15caused 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) The Secretary of State must—

(a) 20publish 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
considers appropriate.”

(3) 25In 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
insert—

“(A1) 30For 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
authorised fuels without producing any smoke or a substantial
35quantity 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
40subsection (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
subject.

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

(5) 5In 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
where 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
10“20(6)” substitute “20”.

16 Sellers of knitting yarn

(1) The 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
15Quantities) (Pre-packed Products) Regulations 2009 (S.I. 2009/663S.I. 2009/663), omit
regulation 3.

Companies and insolvency

17 Authorisation of insolvency practitioners

(1) Part 13 of the Insolvency Act 1986 (insolvency practitioners and their
20qualification) is amended in accordance with subsections (2) to (4).

(2) In section 390 (persons not qualified to act as insolvency practitioners), for
subsection (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
25390A.”

(3) After section 390 insert—

“390A Authorisation

(1) In this Part—

• “partial authorisation” means authorisation to act as an insolvency
  30practitioner—

  (a)

  only in relation to companies, or

  (b)

  only in relation to individuals;

• “full authorisation” means authorisation to act as an insolvency
  practitioner in relation to companies, individuals and insolvent
  35partnerships;

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

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

(a) 40by virtue of being a member of a professional body recognised
under section 391(1) and being permitted to act as an insolvency

practitioner 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
5Article 352 of the Insolvency (Northern Ireland) Order 1989.

(3) A 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
10practitioner in relation only to companies or only to individuals
by 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 15Partial authorisation: acting in relation to partnerships

(1) A 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) 20is or was a member of a partnership, and

(b) has 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
25appointment the person is 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.

(3) Subject to subsection (9), a person who is partially authorised to act as
30an insolvency practitioner in relation to companies may nonetheless
not 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,

35unless the person is granted permission to continue to act by the court.

(4) Subject 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) 40is 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) The court may grant a person permission to continue to act for the
45purposes 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

(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
5a replacement order under—

(a) where 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
10applies, section 303(2C) (member of insolvent partnership:
England 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) 15A person does not contravene subsection (3) or (4) by continuing to act
as 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) 20applies to the court for a replacement order.

(10) For 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;

• 25“permitted period” means the period beginning with the day on
  which 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
  30mentioned in subsection (9)(a) or (b), and

  (b)

  the 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 35Recognised professional bodies

(1) 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
recognised professional body which is capable of providing its
insolvency specialist members with full authorisation or partial
40authorisation.

(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
recognised professional body which is capable of providing its
insolvency specialist members with partial authorisation only.

(3) 45An order under subsection (2) must state whether the partial
authorisation relates to companies or to individuals.

(4) The requirements are that the body—

(a) regulates 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
5practitioners, and

(ii) meet 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
10Secretary of State that the body no longer meets the requirements of
subsection (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
15the body is capable of providing its insolvency specialist members with
partial 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
20provision whereby members of the body in question continue to be
treated 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) 25references to members of a recognised professional body are to
persons 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) 30references to insolvency specialist members of a professional
body 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
35body) insert—

“(1A) Fees 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) 40An order under section 391(1) of the Insolvency Act 1986 (recognised
professional bodies) made before the coming into force of this section is,
following 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.

18 Auditors ceasing to hold office

(1) 45Chapter 4 of Part 16 of the Companies Act 2006 (audit: removal, resignation,
etc of auditors) is amended as follows.

(2) In 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
5of the reasons for doing so.

(2) An 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) 10in the case of a private company, at the end of a period for
appointing auditors;

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

(2B) The second condition is that—

(a) 15A’s reasons for ceasing to hold office are all exempt reasons (as
to 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) 20A statement under this section must include—

(a) the 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) 25Where there are matters connected with an auditor’s ceasing to hold
office 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) 30an auditor (“A”) of a non-public interest company is required by
subsection (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
35creditors 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
40company” 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
  45Services and Markets Act 2000), or

  Deregulation BillPage 16

  (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) 5For 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
10ceasing 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
15under 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) 20A 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
251989 (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
30if 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) 35The 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
40subsections (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
end of a period for appointing auditors;

(b) in the case of a public company, at any time other than at the
45end 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
reasons (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
5office 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
10section 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
15agrees 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) 20the 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.

19 25Insolvency 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) 30bankruptcy;

(e) insolvency practitioners;

(f) liabilities of administrators etc and preferential debts;

(g) appointment of proxies under company law.

Use of land

20 35Recorded 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 Other protected rights: England

(1) A surveying authority in England may not, at any time after the cut-off
40date, 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
way, 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) 5In 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.”

21 Unrecorded rights of way: protection from extinguishment

10In 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) 15provision 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) 20provision 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
25definitive 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
30to 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
35not 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
40maintained by them under section 53B of the 1981 Act.

(2) The 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
45provide—

(a) that 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) where an order under section 53(2) of the 1981 Act making
modifications to a definitive map and statement to show a
5designated 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) In subsection (3)(a), “the designation period” means the period
which—

(a) 10begins when the right of way is designated, and

(b) ends when—

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

(ii) 15if no such order is made, the right of way is extinguished
in accordance with the regulations.

(5) In this section—

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

• “enactment” means a provision of an Act or of subordinate
  20legislation (within the meaning of the Interpretation Act 1978).”

22 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
by section 21) insert—

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

(1) 25This section applies where—

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

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

(i) 30is 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
person to obtain access to a part of that land if the person
had an interest in that part only.

(2) 35The 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
is, on the cut-off date, in fact—

(a) 40exercising 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 20 and 21 and this
section, in section 56 of the 2000 Act, in subsection (1), for “sections 53 and 55”
45substitute “sections 53, 55, 55A, 56A and 56B”.