Session 2014 - 15
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Other Bills before Parliament


 
 

Public Bill Committee:                               

385

 

, continued

 
 

amendment 146 to the definition of “shadow director” in the Insolvency Act 1986 and the

 

Company Directors Disqualification Act 1986.

 


 

Matthew Hancock

 

Jo Swinson

 

NC7

 

To move the following Clause

 

         

“Funding for free of charge early years provision

 

(1)    

In section 13A of the Childcare Act 2006 (supply of information: free of

 

charge early years provision)—

 

(a)    

in subsection (3), after “provision” insert “or for funding related

 

to free of charge early years provision”;

 

(b)    

in subsection (6), after “provision” insert “or for funding related

 

to free of charge early years provision”.

 

(2)    

In section 13B of that Act (unauthorised disclosure of information

 

received under section 13A), in subsection (2)(b), after “provision” insert

 

“or for funding related to free of charge early years provision”.”

 

Member’s explanatory statement

 

This amendment allows disclosure of tax credit and social security information to the Secretary of

 

State and English local authorities for determining eligibility for funding related to free early years

 

childcare provision. Disclosure for this purpose is also included as an exception to the existing

 

offence of unauthorised disclosure.

 


 

Matthew Hancock

 

Jo Swinson

 

NC8

 

To move the following Clause

 

         

“Sections 110 to 113: further amendments

 

Schedule (Abolition of requirements to hold meetings; opted-out creditors)—

 

(a)    

makes amendments relating to sections 110 to 113, and

 

(b)    

removes requirements to hold a general meeting of a company when the

 

company’s affairs are fully wound up.”

 

Member’s explanatory statement

 

This amendment replaces clause 114. That clause provides a “Henry VIII” power to introduce the

 

changes now being made through NS1. The Schedule abolishes requirements to hold meetings and

 

makes provision in respect of creditors who opt out of receiving correspondence.

 



 
 

Public Bill Committee:                               

386

 

, continued

 
 

Mr Iain Wright

 

Ian Murray

 

Toby Perkins

 

NC9

 

To move the following Clause

 

         

“Duty to keep register updated

 

(1)    

The Secretary of State may by regulations make provision prescribing the steps

 

to be taken by Companies House to ensure that the information on PSC registers

 

or, as the case may be, the central register is as accurate, reliable and up to date

 

as possible.

 

(2)    

Regulations under this section are subject to the affirmative resolution

 

procedure.”

 


 

Andrew Griffiths

 

NC10

 

To move the following Clause

 

         

“Definition of tenancy: restriction

 

For the purposes of Part 4 of this Act, and the avoidance of doubt, franchise

 

agreements accredited by the British Franchise Association shall be excluded

 

from the definition of “tenancy” mentioned in section 61, subsection (2).”

 


 

Ian Murray

 

Mr Iain Wright

 

Toby Perkins

 

NC12

 

To move the following Clause

 

         

“National Minimum Wage

 

(1)    

Section 17 of the National Minimum Wage Act 1998 (Non-compliance: worker

 

entitled to additional remuneration) is amended as follows—

 

(2)    

In subsection (2) after paragraph (a) insert—

 

“(b)    

the relevant remuneration related to any holiday pay or other

 

related pay connected to the worker, and”.”

 



 
 

Public Bill Committee:                               

387

 

, continued

 
 

New Schedules

 

Matthew Hancock

 

Jo Swinson

 

NS1

 

To move the following Schedule

 

“Abolition of requirements to hold meetings; opted-out creditors

 

Part 1

 

Company insolvency

 

Introductory

 

1          

The Insolvency Act 1986 is amended in accordance with this Part of this

 

Schedule.

 

Company voluntary arrangements

 

2          

In section 2(2) (nominee’s report on company’s proposal), for paragraphs (aa)

 

and (b) substitute—

 

“(b)    

whether, in his opinion, the proposal should be considered by

 

a meeting of the company and by the company’s creditors, and

 

(c)    

if in his opinion it should, the date on which, and time and

 

place at which, he proposes a meeting of the company should

 

be held.”

 

3    (1)  

Section 3 (summoning of meetings) is amended as follows.

 

      (2)  

In subsection (1)—

 

(a)    

for the words from “that” to “summoned” substitute “under section

 

2(2) that the proposal should be considered by a meeting of the

 

company and by the company’s creditors”;

 

(b)    

for the words from “directs)” to the end substitute “directs)—

 

(a)    

summon a meeting of the company to consider the

 

proposal for the time, date and place proposed in the

 

report, and

 

(b)    

seek a decision from the company’s creditors as to

 

whether they approve the proposal.”

 

      (3)  

In subsection (2), for the words from “shall” to the end substitute “shall—

 

(a)    

summon a meeting of the company to consider the proposal

 

for such time, date and place as he thinks fit, and

 

(b)    

seek a decision from the company’s creditors as to whether

 

they approve the proposal.”

 

      (4)  

For subsection (3) substitute—

 

“(3)    

A decision of the company’s creditors as to whether they approve the

 

proposal is to be made by a qualifying decision procedure.

 

(4)    

Notice of the  qualifying decision procedure must be given to every

 

creditor of the company of whose claim and address the person

 

seeking the decision is aware.”

 

      (5)  

For the heading substitute “Consideration of proposal”.

 

4    (1)  

Section 4 (decisions of meetings) is amended as follows.


 
 

Public Bill Committee:                               

388

 

, continued

 
 

      (2)  

For subsection (1) substitute—

 

“(1)    

This section applies where, under section 3—

 

(a)    

a meeting of the company is summoned to consider the

 

proposed voluntary arrangement, and

 

(b)    

the company’s creditors are asked to decide whether to

 

approve the proposed voluntary arrangement.

 

(1A)    

The company and its creditors may approve the proposed voluntary

 

arrangement with or without modifications.”

 

      (3)  

In subsection (3) for “A meeting so summoned shall not” substitute “Neither

 

the company nor its creditors may”.

 

      (4)  

In subsection (4)—

 

(a)    

for “a meeting so summoned shall not” substitute “neither the

 

company nor its creditors may”;

 

(b)    

omit “the meeting may approve”;

 

(c)    

after “such a proposal or modification” insert “may be approved”.

 

      (5)  

In subsection (5) for “each of the meetings” substitute “the meeting of the

 

company and the qualifying decision procedure”.

 

      (6)  

In subsection (6) for “either” substitute “the company”.

 

      (7)  

After subsection (6) insert—

 

“(6A)    

After the company’s creditors have decided whether to approve the

 

proposed voluntary arrangement the person who sought the decision

 

must—

 

(a)    

report the creditors’ decision to the court, and

 

(b)    

immediately after reporting to the court, give notice of the

 

creditors’ decision to such persons as may be prescribed.”

 

      (8)  

In the heading, for “meetings” substitute “the company and its creditors”.

 

5    (1)  

Section 4A (approval of arrangement) is amended as follows.

 

      (2)  

In subsection (2)—

 

(a)    

in paragraph (a) for “both meetings summoned under section 3”

 

substitute “the meeting of the company summoned under section 3 and

 

by the company’s creditors pursuant to that section”;

 

(b)    

in paragraph (b) for “creditors’ meeting summoned under” substitute

 

“company’s creditors pursuant to”.

 

      (3)  

In subsections (3), (4)(a) and (6)(a) for “creditors’ meeting” substitute

 

“company’s creditors”.

 

6    (1)  

Section 5 (effect of approval) is amended as follows.

 

      (2)  

In subsection (2)—

 

(a)    

in paragraph (a) for “creditors’ meeting” substitute “time the creditors

 

decided to approve the voluntary arrangement”;

 

(b)    

in paragraph (b)(i) for the words from “at that” to “it)” substitute “in

 

the qualifying decision procedure by which the creditors’ decision to

 

approve the voluntary arrangement was made”.

 

      (3)  

In subsection (4)(a) after “4(6)” insert “and (6A)”.

 

7    (1)  

Section 6 (challenge of decisions) is amended as follows.

 

      (2)  

In subsection (1)(b) for “either of the meetings” substitute “the meeting of the

 

company, or in relation to the relevant qualifying decision procedure”.

 

      (3)  

After subsection (1) insert—

 

“(1A)    

In this section—


 
 

Public Bill Committee:                               

389

 

, continued

 
 

(a)    

the “relevant qualifying decision procedure” means the

 

qualifying decision procedure in which the company’s

 

creditors decide whether to approve a voluntary arrangement;

 

(b)    

references to a decision made in the relevant qualifying

 

decision procedure include any other decision made in that

 

qualifying decision procedure.”

 

      (4)  

In subsection (2)—

 

(a)    

in paragraph (a) for “either of the meetings” substitute “the meeting of

 

the company or in the relevant qualifying decision procedure”;

 

(b)    

in paragraph (aa) for “at the creditors’ meeting” substitute “in the

 

relevant qualifying decision procedure”.

 

      (5)  

In subsection (3)(a) after “4(6)” insert “and (6A)”.

 

      (6)  

In subsection (3)(b)—

 

(a)    

for “creditors’ meeting” substitute “relevant qualifying decision

 

procedure”;

 

(b)    

for “the meeting” substitute “the relevant qualifying decision

 

procedure”.

 

      (7)  

In subsection (4), for “one or both” substitute “any”.

 

      (8)  

In subsection (4)(a), for “in question” substitute “of the company, or in the

 

relevant qualifying decision procedure,”.

 

      (9)  

In subsection (4)(b)—

 

(a)    

for “further meetings” substitute “a further company meeting”;

 

(b)    

for “, a further company or (as the case may be) creditors’” substitute

 

“and relating to the company meeting, a further company”.

 

    (10)  

In subsection (4), after paragraph (b) insert—

 

“(c)    

direct any person—

 

(i)    

to seek a decision from the company’s creditors

 

(using a qualifying decision procedure) as to whether

 

they approve any revised proposal the person who

 

made the original proposal may make, or

 

(ii)    

in a case falling within subsection (1)(b) and relating

 

to the relevant qualifying decision procedure, to seek

 

a decision from the company’s creditors (using a

 

qualifying decision procedure) as to whether they

 

approve the original proposal.”

 

    (11)  

In subsection (5) for “for the summoning of meetings to consider” substitute

 

“or (c) in relation to”.

 

    (12)  

In subsection (6)—

 

(a)    

after “meeting” insert “or relevant qualifying decision procedure”;

 

(b)    

in paragraph (a) after “(4)(b)” insert “or (c)”.

 

    (13)  

In subsection (7)—

 

(a)    

the words from “a decision” to the end become paragraph (a);

 

(b)    

in that paragraph (a), after “at a” insert “company”;

 

(c)    

after that paragraph (a) insert “, and

 

(b)    

a decision of the company’s creditors made in the

 

relevant qualifying decision procedure is not

 

invalidated by any irregularity in relation to the

 

relevant qualifying decision procedure.”

 

8          

In section 7(2)(a) for “given at one or both of the meetings summoned under”

 

substitute “of the voluntary arrangement by the company or its creditors (or

 

both) pursuant to”.


 
 

Public Bill Committee:                               

390

 

, continued

 
 

9    (1)  

Schedule A1 (moratorium where directors propose voluntary arrangement) is

 

amended as follows.

 

      (2)  

For paragraph 6(2)(c) substitute—

 

“(c)    

the proposed voluntary arrangement should be considered

 

by a meeting of the company and by the company’s

 

creditors.”

 

      (3)  

For paragraph 7(1)(e)(iii) substitute—

 

“(iii)    

the proposed voluntary arrangement should be

 

considered by a meeting of the company and by the

 

company’s creditors.”

 

      (4)  

For paragraph 8(2) to (4) substitute—

 

    “(2)  

A moratorium ends with the later of—

 

(a)    

the day on which the company meeting summoned under

 

paragraph 29 is first held, and

 

(b)    

the day on which the company’s creditors decide whether

 

to approve the proposed voluntary arrangement,

 

            

unless it is extended under paragraph 32; but this is subject to the

 

rest of this paragraph.

 

      (3)  

In this paragraph the “initial period” means the period of 28 days

 

beginning with the day on which the moratorium comes into force.

 

    (3A)  

If the company meeting has not first met before the end of the initial

 

period the moratorium ends at the end of that period, unless before

 

the end of that period it is extended under paragraph 32.

 

    (3B)  

If the company’s creditors have not decided whether to approve the

 

proposed voluntary arrangement before the end of the initial period

 

the moratorium ends at the end of that period, unless before the end

 

of that period—

 

(a)    

the moratorium is extended under paragraph 32, or

 

(b)    

a meeting of the company’s creditors is summoned in

 

accordance with section 246ZE.

 

    (3C)  

Where sub-paragraph (3B)(b) applies, the moratorium ends with

 

the day on which the meeting of the company’s creditors is first

 

held, unless it is extended under paragraph 32.

 

      (4)  

The moratorium ends at the end of the initial period if the nominee

 

has not before the end of that period—

 

(a)    

summoned a meeting of the company, and

 

(b)    

sought a decision from the company’s creditors,

 

            

as required by paragraph 29(1).”

 

      (5)  

For paragraph 8(6)(c) substitute—

 

“(c)    

a decision of one or both of—

 

(i)    

the meeting of the company summoned under

 

paragraph 29, or

 

(ii)    

the company’s creditors.”

 

      (6)  

For the heading before paragraph 29 substitute “Duty to summon company

 

meeting and seek creditors’ decision”.

 

      (7)  

In paragraph 29(1), for the words from “shall” to the end substitute “shall—

 

(a)    

summon a meeting of the company to consider the

 

proposed voluntary arrangement for such a time, date


 
 

Public Bill Committee:                               

391

 

, continued

 
 

(within the period of time for the time being specified in

 

paragraph 8(3)) and place as he thinks fit, and

 

(b)    

seek a decision from the company’s creditors as to whether

 

they approve the proposed voluntary arrangement.”

 

      (8)  

For paragraph 29(2) substitute—

 

    “(2)  

The decision of the company’s creditors is to be made by a

 

qualifying decision procedure.

 

      (3)  

Notice of the  qualifying decision procedure must be given to every

 

creditor of the company of whose claim the nominee is aware.”

 

      (9)  

In the heading before paragraph 30, for “meetings” substitute “company

 

meeting and qualifying decision procedure”.

 

    (10)  

In paragraph 30(1) for “meetings summoned under paragraph 29” substitute

 

“company meeting summoned under paragraph 29 and the qualifying decision

 

procedure instigated under that paragraph”.

 

    (11)  

In paragraph 30(2) for “A meeting so summoned” substitute “The company

 

meeting summoned under paragraph 29”.

 

    (12)  

In paragraph 30(3) for “either” substitute “the company”.

 

    (13)  

After paragraph 30(3) insert—

 

    “(4)  

After the company’s creditors have decided whether to approve the

 

proposed voluntary arrangement the nominee must—

 

(a)    

report the decision to the court, and

 

(b)    

immediately after reporting to the court, give notice of the

 

decision to such persons as may be prescribed.”

 

    (14)  

For paragraph 31(1) substitute—

 

    “(1)  

This paragraph applies where under paragraph 29—

 

(a)    

a meeting of the company is summoned to consider the

 

proposed voluntary arrangement, and

 

(b)    

the nominee seeks a decision from the company’s creditors

 

as to whether they approve the proposed voluntary

 

arrangement.

 

    (1A)  

The company and its creditors may approve the proposed voluntary

 

arrangement with or without modifications.”

 

    (15)  

In paragraph 31(4) for “A meeting summoned under paragraph 29 shall not”

 

substitute “Neither the company nor its creditors may”.

 

    (16)  

In paragraph 31(5) for “a meeting so summoned shall not” substitute “neither

 

the company nor its creditors may”.

 

    (17)  

In paragraph 31(6) for “The meeting may approve such a proposal or

 

modification” substitute “Such a proposal or modification may be approved”.

 

    (18)  

In paragraph 31(7)—

 

(a)    

for the words from “period” to “held” substitute “relevant period”;

 

(b)    

for “those meetings” substitute “the company and its creditors”.

 

    (19)  

In paragraph 31, after sub-paragraph (7) insert—

 

  “(7A)  

The “relevant period” is—

 

(a)    

in relation to the company, the period of seven days ending

 

with the company meeting summoned under paragraph 29

 

being held;


 
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Revised 6 November 2014