Session 2014 - 15
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Other Bills before Parliament


 
 

317

 

House of Commons

 
 

Tuesday 4 November 2014

 

Public Bill Committee

 

New Amendments handed in are marked thus Parliamentary Star

 

Parliamentary Star - whiteAmendments which will comply with the required notice period at their next appearance

 

Small Business, Enterprise and


 

Employment Bill


 

Note

 

The Amendments have been arranged in accordance with the Order of the

 

Committee [14 October 2014].

 


 

Matthew Hancock

 

Jo Swinson

 

Schedule  8,  page  214,  line  27,  leave out “11C” and insert “11E”

 

Member’s explanatory statement

 

This amendment corrects a cross-reference to ensure that none of the provisions setting out the

 

new ground for disqualifying a person for instructing an unfit director will apply to industrial and

 

provident societies in Northern Ireland, to correspond with consequential amendments being

 

made to that effect in Great Britain.

 

Toby Perkins

 

Mr Iain Wright

 

Ian Murray

 

Clause  105,  page  83,  line  10,  at end insert—

 

“(3)    

This section shall not come into force until the Secretary of State has carried out

 

a full review of the impacts of abolishing the time limits for administration and

 

the effect of such a change on this section.”


 
 

Public Bill Committee:                               

318

 

, continued

 
 

Matthew Hancock

 

Jo Swinson

 

Clause  107,  page  84,  line  3,  after “assignment” insert “(or, in Scotland,

 

assignation)”

 

Member’s explanatory statement

 

This amendment and amendment 164 make technical changes to reflect different legal terminology

 

in Scotland.

 

Matthew Hancock

 

Jo Swinson

 

Clause  107,  page  84,  line  5,  after “assignment” insert “(or, in Scotland,

 

assignation)”

 

Member’s explanatory statement

 

See the explanatory statement to amendment 163.

 

Toby Perkins

 

Mr Iain Wright

 

Ian Murray

 

Clause  109,  page  85,  line  7,  leave out “creditors’ committee or”

 

Toby Perkins

 

Mr Iain Wright

 

Ian Murray

 

Clause  110,  page  85,  line  24,  leave out from “least” to “a” in line 25 and insert “one

 

creditor makes”

 

Matthew Hancock

 

Jo Swinson

 

Clause  110,  page  85,  line  30,  leave out from beginning to end of line 33 and

 

insert—

 

“( )    

Subsection (2) is subject to any provision of this Act, the rules or any other

 

legislation, or any order of the court—

 

(a)    

requiring a decision to be made, or prohibiting a decision from being

 

made, by a particular qualifying decision procedure (other than a

 

creditors’ meeting or a contributories’ meeting);

 

(b)    

permitting or requiring a decision to be made by a creditors’ meeting or

 

a contributories’ meeting.”

 

Member’s explanatory statement

 

This amendment enables the Insolvency Rules to make provision for particular decisions by

 

creditors and contributories to be made by specific decision making processes, including by way

 

of a physical meeting.


 
 

Public Bill Committee:                               

319

 

, continued

 
 

Matthew Hancock

 

Jo Swinson

 

Clause  110,  page  86,  line  6,  leave out from “decision” to end of line 16 and insert

 

“about any matter, unless—

 

(a)    

a decision about the matter is required by virtue of this Act, the rules, or

 

any other legislation to be made by a qualifying decision procedure, or

 

(b)    

the court orders that a decision about the matter is to be made by a

 

qualifying decision procedure.

 

( )    

If the rules provide for a company’s creditors or contributories to make a decision

 

about the remuneration of any person, they must provide that the decision is to be

 

made by a qualifying decision procedure.”

 

Member’s explanatory statement

 

This amendment clarifies that a process of deemed consent may not be used to make a decision

 

where the Insolvency Act 1986, the Insolvency Rules, other legislation or the court specify that it

 

may not, or where the creditors or contributories make a decision about an office-holder’s

 

remuneration.

 

Matthew Hancock

 

Jo Swinson

 

Clause  110,  page  86,  line  30,  leave out from “Otherwise” to the end of line 31 and

 

insert—

 

“(a)    

the creditors or (as the case may be) the contributories are to be treated as

 

not having made a decision about the matter in question, and

 

(b)    

if a decision about that matter is again sought from the creditors or (as the

 

case may be) the contributories, it must be sought using a qualifying

 

decision procedure.”

 

Member’s explanatory statement

 

This amendment clarifies that where a deemed consent procedure fails to produce a decision on a

 

matter, there is a power but not a duty to seek a decision on the matter using a qualifying decision

 

procedure.

 

Matthew Hancock

 

Jo Swinson

 

Clause  110,  page  86,  line  34,  leave out “participate” and insert “vote”

 

Member’s explanatory statement

 

This amendment and amendments 169, 172, 173, 180, 183, 184, 185 and 186 draw a distinction

 

between the rights of creditors and contributories to vote in decision making procedures and the

 

rights of other parties, such as company officers and bankrupt individuals, to participate but not

 

to vote.

 

Matthew Hancock

 

Jo Swinson

 

Clause  110,  page  86,  line  37,  leave out “participate” and insert “vote”


 
 

Public Bill Committee:                               

320

 

, continued

 
 

Matthew Hancock

 

Jo Swinson

 

Clause  110,  page  86,  leave out lines 38 to 43

 

Member’s explanatory statement

 

This amendment removes the definition of “office-holder” from clause 110. This definition is no

 

longer required in consequence of the amendments made by amendment 166.

 

Matthew Hancock

 

Jo Swinson

 

Clause  110,  page  87,  line  15,  at end insert—

 

“( )    

the rights of creditors, contributories and others to be given notice of,

 

and participate in, procedures,”

 

Member’s explanatory statement

 

This amendment clarifies that the Insolvency Rules may determine who receives notice of decision

 

making processes in order to participate and vote in them. The Rules will provide for cases where

 

creditors who have opted out of receiving further correspondence will not be sent notices.

 

Matthew Hancock

 

Jo Swinson

 

Clause  110,  page  87,  line  16,  leave out “participate” and insert “vote”

 

Matthew Hancock

 

Jo Swinson

 

Clause  110,  page  87,  line  18,  after “participate” insert “or vote”

 

Matthew Hancock

 

Jo Swinson

 

Clause  111,  page  87,  line  38,  after “where” insert “, for the purposes of this Group

 

of Parts,”

 

Member’s explanatory statement

 

This amendment inserts a reference to a Group of Parts into clause 111. This is to make the

 

language used in clause 111 consistent with that used in clause 110.

 

Matthew Hancock

 

Jo Swinson

 

Clause  111,  page  87,  line  38,  leave out “a person’s” and insert “an individual’s”

 

Member’s explanatory statement

 

This amendment changes the way to which a natural person is referred in clause 111 in order to

 

make it consistent with the language used elsewhere in the Insolvency Act 1986.


 
 

Public Bill Committee:                               

321

 

, continued

 
 

Matthew Hancock

 

Jo Swinson

 

Clause  111,  page  88,  line  5,  leave out from beginning to end of line 7 and insert—

 

“( )    

Subsection (2) is subject to any provision of this Act, the rules or any other

 

legislation, or any order of the court—

 

(a)    

requiring a decision to be made, or prohibiting a decision from being

 

made, by a particular creditors’ decision procedure (other than a

 

creditors’ meeting);

 

(b)    

permitting or requiring a decision to be made by a creditors’ meeting.”

 

Member’s explanatory statement

 

This amendment enables the Insolvency Rules to make provision for particular decisions by

 

creditors to be made by specific decision making procedures, including by way of a physical

 

meeting.

 

Matthew Hancock

 

Jo Swinson

 

Clause  111,  page  88,  line  21,  leave out “a person’s” and insert “an individual’s”

 

Member’s explanatory statement

 

This amendment changes the way to which a natural person is referred in clause 111 in order to

 

make it consistent with the language used elsewhere in the Insolvency Act 1986.

 

Matthew Hancock

 

Jo Swinson

 

Clause  111,  page  88,  line  22,  leave out from first “matter” to end of line 30 and

 

insert “, unless—

 

(a)    

a decision about the matter is required by virtue of this Act, the rules or

 

any other legislation to be made by a creditors’ decision procedure, or

 

(b)    

the court orders that a decision about the matter is to be made by a

 

creditors’ decision procedure.

 

( )    

If the rules provide for an individual’s creditors to make a decision about the

 

remuneration of any person, they must provide that the decision is to be made by

 

a creditors’ decision procedure.”

 

Member’s explanatory statement

 

This amendment clarifies that a process of deemed consent may not be used to make a decision

 

where the Insolvency Act 1986, the Insolvency Rules, other legislation or the court specify that it

 

may not, or where the creditors make a decision about an office-holder‘s remuneration.

 

Toby Perkins

 

Mr Iain Wright

 

Ian Murray

 

Clause  111,  page  88,  line  41,  at end insert—

 

“(4A)    

The deemed consent procedure may not be used where the insolvency practitioner

 

judges that a face-to-face meeting would incur no additional cost saving to

 

creditors.”

 

Matthew Hancock

 

Jo Swinson

 

Clause  111,  page  88,  line  42,  leave out from “Otherwise” to end of line 43 and

 

insert—


 
 

Public Bill Committee:                               

322

 

, continued

 
 

“(a)    

the creditors are to be treated as not having made a decision about the

 

matter in question, and

 

(b)    

if a decision about that matter is again sought from the creditors, it must

 

be sought using a creditors’ decision procedure.”

 

Member’s explanatory statement

 

This amendment clarifies that where a deemed consent procedure fails to produce a decision on a

 

matter, there is a power but not a duty to seek a decision on the matter using a creditors’ decision

 

procedure.

 

Matthew Hancock

 

Jo Swinson

 

Clause  111,  page  89,  line  3,  leave out “participate” and insert “vote”

 

Matthew Hancock

 

Jo Swinson

 

Clause  111,  page  89,  leave out lines 4 to 8

 

Member’s explanatory statement

 

This amendment removes the definition of “office-holder” from clause 111. This definition is no

 

longer required in consequence of the amendments made by amendment 178.

 

Matthew Hancock

 

Jo Swinson

 

Clause  111,  page  89,  line  24,  at end insert—

 

“( )    

the rights of creditors and others to be given notice of, and participate

 

in, procedures,”

 

Member’s explanatory statement

 

This amendment clarifies that the Insolvency Rules may determine who receives notice of decision

 

making processes in order to participate and vote in them. The Rules will provide for cases where

 

creditors who have opted out of receiving further correspondence will not be sent notices.

 

Matthew Hancock

 

Jo Swinson

 

Clause  111,  page  89,  line  25,  leave out “participate” and insert “vote”

 

Matthew Hancock

 

Jo Swinson

 

Clause  111,  page  89,  line  26,  after “participate” insert “or vote”

 

Matthew Hancock

 

Jo Swinson

 

Clause  112,  page  90,  line  14,  after “participate” insert “and vote”


 
 

Public Bill Committee:                               

323

 

, continued

 
 

Matthew Hancock

 

Jo Swinson

 

Clause  113,  page  91,  line  28,  after “participate” insert “and vote”

 

Matthew Hancock

 

Jo Swinson

 

Page  92,  line  29,  leave out Clause 114

 

Member’s explanatory statement

 

This amendment indicates the Government’s intention to oppose the question that clause 114 stand

 

part. Clause 114 is being replaced by NC8.

 

Toby Perkins

 

Mr Iain Wright

 

Ian Murray

 

Clause  117,  page  93,  line  28,  after “(administration)”, insert “which relates to pre

 

pack administrations,”

 

Toby Perkins

 

Mr Iain Wright

 

Ian Murray

 

Clause  117,  page  93,  leave out line 36.

 

Toby Perkins

 

Mr Iain Wright

 

Ian Murray

 

Clause  117,  page  94,  line  27,  after sub-paragraph (6) insert—

 

“(6A)    

Regulations under this paragraph may only be made in relation to pre-packaged

 

sales by administrators.

 

(6B)    

For the purposes of this paragraph a pre-packaged sale is an arrangement under

 

which the sale of all or part of a company’s business or assets is negotiated with

 

a purchaser prior to the appointment of the administrator and the administrator

 

effects the sale immediately on, or shortly after, his appointment.”


 
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Revised 4 November 2014