Session 2014 - 15
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Other Bills before Parliament


 
 

Public Bill Committee:                               

260

 

, continued

 
 

(c)    

in accordance with guidance or advice given by that person in that

 

person’s capacity as a Minister of the Crown (within the meaning of the

 

Ministers of the Crown Act 1975)”.

 

( )    

In section 22(5) of the Company Directors Disqualification Act 1986 (definition

 

of “shadow director”) for the words from “(but” to the end substitute “, but so that

 

a person is not deemed a shadow director by reason only that the directors act—

 

(a)    

on advice given by that person in a professional capacity;

 

(b)    

in accordance with instructions, a direction, guidance or advice given by

 

that person in the exercise of a function conferred by or under an

 

enactment;

 

(c)    

in accordance with guidance or advice given by that person in that

 

person’s capacity as a Minister of the Crown (within the meaning of the

 

Ministers of the Crown Act 1975)”.”

 

Member’s explanatory statement

 

This amendment amends the definitions of “shadow director” in the Insolvency Act 1986 and the

 

Company Directors Disqualification Act 1986 to ensure consistency with the definition in section

 

251 of the Companies Act 2006 as it is being amended by clause 79 (and see amendments 147, 148

 

and 149).

 

Matthew Hancock

 

Jo Swinson

 

Clause  79,  page  51,  line  14,  leave out “or a direction” and insert “, a direction,

 

guidance or advice”

 

Member’s explanatory statement

 

This amendment provides that a person exercising a function conferred by or under an enactment

 

is not a shadow director for the purposes of the Companies Act 2006 where the directors act on

 

advice or guidance given by the person in the exercise of such a function.

 

Matthew Hancock

 

Jo Swinson

 

Clause  79,  page  51,  line  17,  leave out “issued” and insert “given”

 

Member’s explanatory statement

 

This amendment makes a minor change to ensure consistency in the language used in the

 

provisions being inserted by clause 79 into section 251 of the Companies Act 2006.

 

Matthew Hancock

 

Jo Swinson

 

Clause  79,  page  51,  line  19,  at end insert—

 

“( )    

In section 1293 of the Companies Act 2006 (meaning of “enactment”) after

 

paragraph (a) insert—

 

“(aa)    

an enactment contained in, or in an instrument made under, a

 

Measure or Act of the National Assembly for Wales,”.”

 

Member’s explanatory statement

 

This amendment adds legislation made by the National Assembly for Wales to the definition of

 

“enactment” in the Companies Act 2006 (Scottish and Northern Ireland legislation are already

 

included). “Enactment” is used in the new exemptions for shadow directors inserted by clause 79.

 

This amendment therefore ensures those exemptions have the correct scope.


 
 

Public Bill Committee:                               

261

 

, continued

 
 

Matthew Hancock

 

Jo Swinson

 

Clause  80,  page  52,  leave out line 13 and insert—

 

“(5)    

For the purposes of this Part, each of the following is a review period—”

 

Member’s explanatory statement

 

This amendment is consequential on amendment 26.

 

Matthew Hancock

 

Jo Swinson

 

Clause  80,  page  52,  leave out lines 16 to 18 and insert—

 

“(b)    

each period of 12 months beginning with the day after the end of the

 

previous review period.

 

(5A)    

But where a company delivers a confirmation statement with a confirmation date

 

which is earlier than the last day of the review period concerned, the next review

 

period is the period of 12 months beginning with the day after the confirmation

 

date.”

 

Member’s explanatory statement

 

This amendment provides for a default review period of 12 months from the end of the previous

 

review period. This default review period will apply where no confirmation statement has been

 

delivered by a company for the previous review period.

 

Mr Iain Wright

 

Ian Murray

 

Toby Perkins

 

Clause  80,  page  57,  line  38,  leave out subsection (2) and insert—

 

“(2)    

A person guilty of an offence under subsection (1) is liable—

 

(a)    

on conviction on indictment, to imprisonment for a term not exceeding

 

two years or a fine (or both); and

 

(b)    

on summary conviction—

 

(i)    

in England and Wales, to imprisonment for a term not exceeding

 

12 months or a fine (or both);

 

(ii)    

in Scotland, to imprisonment for a term not exceeding 12 months

 

or to a fine not exceeding the statutory maximum (or both);

 

(iii)    

in Northern Ireland, to imprisonment for a term not exceeding six

 

months or to a fine not exceeding the statutory maximum (or

 

both).”

 

Matthew Hancock

 

Jo Swinson

 

Clause  81,  page  59,  line  10,  after “(5)” insert “and (5A)”

 

Member’s explanatory statement

 

This amendment is consequential on amendment 26.


 
 

Public Bill Committee:                               

262

 

, continued

 
 

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.

 

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.

 

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:                               

263

 

, 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:                               

264

 

, 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.

 

Matthew Hancock

 

Jo Swinson

 

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


 
 

Public Bill Committee:                               

265

 

, continued

 
 

“( )    

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.

 

Matthew Hancock

 

Jo Swinson

 

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

 

insert—

 

“(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”


 
 

Public Bill Committee:                               

266

 

, continued

 
 

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”

 

Matthew Hancock

 

Jo Swinson

 

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


 
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