House of Commons Amendments

Session 2014 - 15
Internet Publications
Other Bills before Parliament

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138

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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.

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)—

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(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.

      (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)—

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(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—

(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

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(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”.

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

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(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

(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

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(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;

(b)
in relation to the company’s creditors, the period of 14 days

ending with the end of the period mentioned in paragraph

8(3).

    (7B)
Where under sub-paragraph (7) the nominee is given notice of

proposed modifications, the nominee must seek a decision from the

company’s creditors (using a qualifying decision procedure) as to

whether the proposed voluntary arrangement should be approved

with those modifications.”

    (20)
In paragraph 32(1), after “a” insert “company”.

    (21)
In paragraph 32, after sub-paragraph (1) insert—

  “(1A)
Subject to sub-paragraph (2) the company’s creditors may, by a

qualifying decision procedure, decide to extend (or further extend)

the moratorium, with or without conditions.”

    (22)
For paragraph 32(2) substitute—

    “(2)
The moratorium may not be extended (or further extended) to a day

later than the end of the period of two months beginning with the

day after the last day of the period mentioned in paragraph 8(3).”

    (23)
In paragraph 32(3)—

(a)
for “At any meeting where” substitute “Where”;

(b)
after “the meeting” insert “of the company or (as the case may be)

inform the company’s creditors”.

    (24)
In paragraph 32(4)—

(a)
after “a meeting” insert “of the company or informs the company’s

creditors,”;

(b)
after “resolve” insert “, or (as the case may be) the creditors by a

qualifying decision procedure shall decide,”.

    (25)
In paragraph 32(6) for “may resolve” substitute “of the company may resolve,

and the creditors by a qualifying decision procedure may decide,”.

    (26)
In paragraph 33(3) for “At any meeting where” substitute “Where”.

    (27)
In paragraph 35, for sub-paragraphs (1) and (2) substitute—

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    “(1)
This paragraph applies where in accordance with paragraph 32 a

meeting of the company resolves, or the company’s creditors

decide, that the moratorium be extended (or further extended).

    (1A)
The meeting may resolve, and the company’s creditors may by a

qualifying decision procedure decide, that a committee be

established to exercise the functions conferred on it by the meeting

or (as the case may be) by the company’s creditors.

      (2)
The meeting may resolve that such a committee be established only

if—

(a)
the nominee consents, and

(b)
the meeting approves an estimate of the expenses to be

incurred by the committee in the exercise of the proposed

functions.

    (2A)
A decision of the company’s creditors that such a committee be

established has effect only if—

(a)
the nominee consents, and

(b)
the creditors by a qualifying decision procedure approve an

estimate of the expenses to be incurred by the committee in

the exercise of the proposed functions.”

    (28)
In paragraph 36(2)—

(a)
in paragraph (a) for “both meetings summoned under paragraph 29”

substitute “the meeting of the company summoned under paragraph 29

and by the company’s creditors”;

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

paragraph” substitute “company’s creditors”.

    (29)
In paragraph 36(3), (4)(a) and (5)(a) for “creditors’ meeting” substitute

“company’s creditors”.

    (30)
In paragraph 37(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”.

    (31)
In paragraph 37(5)(a)—

(a)
omit “of the meetings”;

(b)
after “30(3)” insert “and (4)”.

    (32)
In paragraph 38(1)—

(a)
in paragraph (a) for the words from “approved” to “effect” substitute

“which has taken effect under paragraph 37”;

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

of the company summoned under paragraph 29, or in relation to the

relevant qualifying decision procedure”.

    (33)
After paragraph 38(1) insert—

  “(1A)
In this paragraph—

(a)
the “relevant qualifying decision procedure” means the

qualifying decision procedure in which the creditors

decided whether to approve the voluntary arrangement;

(b)
references to a decision made in the relevant qualifying

decision procedure include any other decision made in that

qualifying decision procedure.”



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