Technical and Further Education Bill (HC Bill 82)

31 (1) This paragraph applies to a standard published by the Institute under
section A2 of the Apprenticeships, Skills, Children and Learning Act 2009
before the day on which paragraph 11 of this Schedule comes into force.

(2) A standard referred to in sub-paragraph (1) is to be treated on and after that
5day as having been approved and published by the Institute under section
ZA11 of that Act (as inserted by paragraph 7 of this Schedule).

32 (1) This paragraph applies to an assessment plan published by the Institute
under section A2 of the Apprenticeships, Skills, Children and Learning Act
2009 before the day on which paragraph 11 of this Schedule comes into force.

(2) 10An assessment plan referred to in sub-paragraph (1) is to be treated on and
after that day as an apprenticeship assessment plan that was approved and
published by the Institute under that section as amended by that paragraph.

33 (1) The Secretary of State may by regulations provide for anything done by the
Secretary of State before the commencement day to be treated, on and after
15that day, as done by the Institute under a provision of the Apprenticeships,
Skills, Children and Learning Act 2009 as amended by this Act.

(2) Regulations under this paragraph are subject to the negative resolution
procedure.

(3) The regulations may provide for that Act (as so amended) to have effect with
20specified modifications in relation to the thing treated as done by the
Institute (for example, if the regulations provide for a group of persons
convened by the Secretary of State to be treated as convened by the Institute
under section ZA11(6), the regulations may disapply the conditions in
section ZA11(6)(a) and (b) in relation to the convening of that group).

(4) 25In this paragraph “the commencement day” means the day on which section
1 and Schedule 1 come fully into force.

Section 23

SCHEDULE 2 Education administration: transfer schemes

Power to make a transfer scheme

1 30The education administrator of a further education body may make a
scheme for the transfer of property, rights and liabilities (a “transfer
scheme”) from the further education body (“the transferor”) to one or more
persons or bodies prescribed for the purposes of section 27B(1) or 33P(1) of
the Further and Higher Education Act 1992 (“the transferee”).

2 35A transfer scheme takes effect at the time specified in the scheme.

Procedural requirements: consent and approval

3 The education administrator may make a transfer scheme only if—

(a) the transferee consents, and

(b) the appropriate national authority has approved the scheme.

4 The appropriate national authority may modify a transfer scheme before
approving it but only with the consent of the education administrator and
the transferee.

Modifying a scheme after it takes effect

5 (1) 5The appropriate national authority may modify a transfer scheme after it
takes effect by giving notice to the transferor and the transferee.

(2) The appropriate national authority may modify a scheme under sub-
paragraph (1) only with the consent of the transferor and the transferee.

(3) A scheme modified under sub-paragraph (1) is to be treated for all purposes
10as having come into force at the time specified under paragraph 2.

Property, rights and liabilities that may be transferred

6 A transfer scheme may transfer—

(a) property, rights and liabilities that could not otherwise be
transferred;

(b) 15property acquired, and rights and liabilities arising, after the making
of the scheme.

7 (1) A transfer scheme may make consequential, supplementary, incidental or
transitional provision and may in particular—

(a) create rights, or impose liabilities, in relation to property or rights
20transferred;

(b) make provision about the continuing effect of things done by the
transferor in respect of anything transferred;

(c) make provision about the continuation of things (including legal
proceedings) in the process of being done by, on behalf of or in
25relation to the transferor in respect of anything transferred;

(d) make provision for references to the transferor in an instrument or
other document in respect of anything transferred to be treated as
references to the transferee;

(e) make provision for the shared ownership or use of property;

(f) 30if the TUPE regulations do not apply in relation to the transfer, make
provision which is the same or similar.

(2) In sub-paragraph (1)(f) “TUPE regulations” means the Transfer of
Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246SI 2006/246).

(3) A transfer scheme may modify the interests, rights or liabilities of third
35parties in relation to anything to which the scheme relates.

(4) The reference here to third parties is to persons other than the transferor and
transferee.

Proof of title by certificate

8 A certificate by the appropriate national authority that anything specified in
40the certificate has vested in a person by virtue of a transfer scheme is
conclusive evidence for all purposes of that fact.

Interpretation

9 In this Schedule—

(a) references to rights and liabilities include rights and liabilities
relating to a contract of employment;

(b) 5references to the transfer of property include the grant of a lease.

Section 24

SCHEDULE 3 Conduct of education administration: statutory corporations

Introductory

1 (1) The provisions of the Insolvency Act 1986 mentioned in sub-paragraph (2)
10apply in relation to the education administration of a further education body
that is a statutory corporation as they apply in relation to a company
administration, but with the modifications set out in this Schedule.

(2) The provisions are—

(a) sections 233 to 237 (management by administrators, liquidators etc);

(b) 15sections 238 to 241 (transactions at an undervalue and preferences);

(c) section 244 (extortionate credit bargains);

(d) section 246 (unenforceability of liens on books, etc);

(e) section 246ZA to 246ZC (fraudulent and wrongful trading);

(f) section 246ZD (power to assign certain causes of action);

(g) 20section 246B (use of websites);

(h) section 246C (creditors’ ability to opt out of receiving certain notices);

(i) sections 247, 248(b), 249 and 251 (interpretation);

(j) the applicable provisions of Schedule B1 (conduct of administration).

(3) The applicable provisions of Schedule B1 are—

(a) 25paragraphs 1, 40 to 49, 54, 59, 60, 61 to 68, 71 to 75, 79, 83 to 91, 98 to
104, 106 and 107 and 109 to 111, and

(b) paragraph 50 (until the repeal of that paragraph by Schedule 10 to
the Small Business, Enterprise and Employment Act 2015 comes into
force).

30General modifications

2 The provisions of the Insolvency Act 1986 applied by paragraph 1 are to
have effect as if for any term specified in column 1 of the table there were
substituted the term specified in column 2.

Specific modifications to Schedule B1 to the Insolvency Act 1986

3 25Paragraphs 4 to 37 set out modifications to the applicable provisions of
Schedule B1 to the Insolvency Act 1986 as applied by paragraph 1 above.

4 Paragraph 1 (administration) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

“(1) In this Schedule “education administrator”, in relation to a
30further education body, means a person appointed by the
court for the purposes of an education administration
order to manage its affairs, business and property.”, and”

(b) in sub-paragraph (2), for “Act” there were substituted “Schedule”.

5 Paragraph 40 (dismissal of pending winding-up petition) is to have effect as
35if sub-paragraphs (1)(b), (2) and (3) were omitted.

6 Paragraph 41 (dismissal of administrative or other receiver) is to have effect
as if—

(a) sub-paragraph (1) were omitted;

(b) in sub-paragraph (3), “administrative receiver or” and “(1) or” were
40omitted;

(c) in sub-paragraph (4)(a) and (b), “administrative receiver or” were
omitted.

7 Paragraph 42 (moratorium on insolvency proceedings) is to have effect as if
sub-paragraphs (4) and (5) were omitted.

8 Paragraph 43 (moratorium on other legal process) is to have effect as if sub-
paragraphs (5) and (6A) were omitted.

9 Paragraph 44 (interim moratorium) is to have effect as if sub-paragraphs (2)
to (4), (6) and (7) were omitted.

10 5Paragraph 45(2) (publicity) is to have effect as if for paragraph (b) there were
substituted—

“(b) a member of the further education body,

(ba) the clerk to the further education body,

(bb) the chief executive of the relevant institution,

(bc) 10any senior post holder or principal of the relevant
institution, and”.”

11 Paragraph 46(6) (date for notifying administrator’s appointment) is to have
effect as if for paragraphs (a) to (c) there were substituted “the date on which
the education administration order comes into force”.

12 15Paragraph 47 (statement of affairs) is to have effect as if—

(a) for sub-paragraph (3)(a) there were substituted—

“(a) a person who is or has been a member of the further
education body,

(aa) a person who is or has been the clerk to the further
20education body,

(ab) a person who is or has been chief executive of the
relevant institution,

(ac) a person who is or has been a senior post holder or
principal of the relevant institution, and”,”

(b) 25in sub-paragraph (3), paragraph (d) were omitted, and

(c) sub-paragraph (5) were omitted.

13 Paragraph 49 (administrator’s proposals) is to have effect as if—

(a) sub-paragraphs (2)(b) and (3) were omitted,

(b) in sub-paragraph (4), after paragraph (a) there were inserted—

“(aa) 30to the appropriate national authority,”, and”

(c) sub-paragraphs (5)(b) and (6) were omitted.

14 Paragraph 54 is to have effect as if the following were substituted for it—

“54 (1) The education administrator of a further education body may on
one or more occasions revise the proposals included in the
35statement made under paragraph 49 in relation to the body.

(2) If the education administrator thinks that a revision is substantial,
the education administrator must send a copy of the revised
proposals—

(a) to the registrar of companies,

(b) 40to the appropriate national authority,

(c) to every creditor of the further education body, other than
an opted-out creditor, of whose claim and address the
education administrator is aware, and

(d) to every member of the further education body of whose
45address the education administrator is aware.

(3) A copy sent in accordance with sub-paragraph (2) must be sent
within the prescribed period.

(4) An education administrator who fails without reasonable excuse
to comply with this paragraph commits an offence.””

15 5Paragraph 60 is to have effect as if the following were substituted for it—

“60 (1) The education administrator of a further education body has the
powers specified in Schedule 1 to this Act (reading references in
that Schedule to the company as references to the further
education body).

(2) 10The education administrator of a further education body has the
power to act on behalf of the further education body for the
purposes of provision contained in any legislation which confers
a power on the further education body or imposes a duty on it.

(3) In sub-paragraph (2) “legislation” means provision made by or
15under any Act.””

16 Paragraph 61 is to have effect as if the following were substituted for it—

“61 The education administrator—

(a) may appoint or remove the clerk to the further education
body,

(b) 20may appoint or remove the chief executive of the relevant
institution, and

(c) may appoint or remove the principal of the relevant
institution.””

17 Paragraph 64 (management powers may not be exercised without consent of
25the administrator) is to have effect as if in sub-paragraph (1) for “an officer
of a company in administration” there were substituted “the clerk to the
further education body or chief executive of the relevant institution”.

18 Paragraph 68 (management duties of an administrator) is to have effect as
if—

(a) 30in sub-paragraph (1), for paragraphs (a) to (c) there were substituted
“the proposals as—

“(a) set out in the statement made under paragraph 49
in relation to the further education body, and

(b) from time to time revised under paragraph 54,

35for achieving the objective of the education
administration.”, and”

(b) in sub-paragraph (3), for paragraphs (a) to (d) there were substituted
“the directions are consistent with the achievement of the objective
of the education administration”.

19 40Paragraph 71 (charged property: non-floating charge), is to have effect as if,
in sub-paragraph (1), the words “(other than a floating charge)” were
omitted.

20 Paragraph 73 (protection for secured or preferential creditor) is to have effect
as if—

(a) 45in sub-paragraph (2), paragraphs (c) and (d) were omitted, and

(b) in sub-paragraph (3), for “or modified” there were substituted
“under paragraph 54”.

21 Paragraph 74 (challenge to administrator’s conduct) is to have effect as if—

(a) sub-paragraph (1) were omitted,

(b) 5for sub-paragraph (2) there were substituted—

“(2) Where a further education body is in education
administration the appropriate national authority or a
creditor may apply to the court claiming that the education
administrator is not carrying out his or her functions in
10accordance with section 22(2) or (3) of the Technical and
Further Education Act 2016 (general functions of
education administrator).”,”

(c) in sub-paragraph (6), paragraphs (b) to (c) were omitted, and

(d) after that sub-paragraph there were inserted—

“(7) 15In the case of a claim made by a creditor, the court may
grant a remedy or relief or make an order under this
paragraph only if it has given the appropriate national
authority a reasonable opportunity of making
representations about the claim and the proposed remedy,
20relief or order.

(8) Before the making of an order of the kind mentioned in
sub-paragraph (4)(d)—

(a) the court must notify the education administrator
of the proposed order and of a period during which
25the education administrator is to have the
opportunity of taking steps falling within sub-
paragraph (9), and

(b) the period notified must have expired without the
taking of such of those steps as the court thinks
30should have been taken,

and that period must be a reasonable period.

(9) The steps referred to in sub-paragraph (8) are steps for—

(a) remedying the failure to carry out functions in
accordance with section 22(2) or (3) of the Technical
35and Further Education Act 2016, and

(b) ensuring that the failure is not repeated.””

22 Paragraph 75(2) (misfeasance) is to have effect as if—

(a) after paragraph (b) there were inserted—

“(ba) a person appointed as an administrator of the further
40education body under the provisions of this Act as
they have effect in relation to administrators other
than education administrators,”,”

(b) at the end of paragraph (c) there were inserted “or”, and

(c) paragraph (e) (and the “or” before it) were omitted.

23 45Paragraph 79 (end of administration) is to have effect as if—

(a) for sub-paragraphs (1) and (2) there were substituted—

“(1) On an application made by a person mentioned in sub-
paragraph (2), the court may provide for the appointment
of an education administrator of a further education body
5to cease to have effect from a specified time.

(2) An application may be made to the court under this
paragraph—

(a) by the appropriate national authority, or

(b) with the consent of the appropriate national
10authority, by the education administrator.”, and”

(b) sub-paragraph (3) were omitted.

24 Paragraph 83 (notice to registrar when moving to voluntary liquidation) is
to have effect as if—

(a) sub-paragraph (2) were omitted, and

(b) 15in sub-paragraph (3) after “may” there were inserted “, with the
consent of the appropriate national authority,”.

25 Paragraph 84 (notice to registrar when moving to dissolution) is to have
effect as if—

(a) in sub-paragraph (1), for “to the registrar of companies” there were
20substituted—

“(a) to the appropriate national authority, and

(b) if directed to do so by the appropriate national
authority, to the registrar of companies”,”

(b) sub-paragraph (2) were omitted, and

(c) 25in sub-paragraphs (3) to (6), for “(1)”, in each place, there were
substituted “(1)(b)”.

26 Paragraph 87(2) (resignation of administrator) is to have effect as if for
paragraphs (a) to (d) there were substituted “by notice in writing to the
court”.

27 30Paragraph 89(2) (administrator ceasing to be qualified) is to have effect as if
for paragraphs (a) to (d) there were substituted “to the court”.

28 Paragraph 90 (filling vacancy in office of administrator) is to have effect as if
for “Paragraphs 91 to 95 apply” there were substituted “Paragraph 91
applies”.

29 35Paragraph 91 (vacancies in court appointments) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

“(1) The court may replace the education administrator on an
application made—

(a) by the appropriate national authority, or

(b) 40where more than one person was appointed to act
jointly as the education administrator, by any of
those persons who remains in office.”, and”

(b) sub-paragraph (2) were omitted.

30 Paragraph 98 (discharge from liability on vacation of office) is to have effect
45as if sub-paragraphs (2)(b) and (ba), (3) and (3A) were omitted.

31 Paragraph 99 (charges and liabilities upon vacation of office by
administrator) is to have effect as if—

(a) in sub-paragraph (3), paragraph (b) were omitted, and

(b) after sub-paragraph (6) there were inserted—

“(7) 5Where a loan is made under section 25 of the Technical and
Further Education Act 2016 before cessation, sub-
paragraph (4) does not apply in relation to the loan or
interest on it and—

(a) if the terms of the loan provide for this paragraph
10to apply, any sum that must be paid by the further
education body in respect of the loan or interest
shall be—

(i) charged on and payable out of property of
which the education administrator had
15custody or control immediately before
cessation, and

(ii) payable in priority to any charge arising
under sub-paragraph (3);

(b) if the terms of the loan provide for this paragraph
20to apply, any sum that must be paid by the further
education body in respect of the loan or interest
shall be treated as an unsecured debt that is not a
preferential debt;

(c) if the terms of the loan provide for this paragraph
25to apply, any sum that must be paid by the further
education body in respect of the loan or interest
shall be payable after all other creditors have been
paid in full.””

32 Paragraph 100 (joint and concurrent administrators) is to have effect as if
30sub-paragraph (2) were omitted.

33 Paragraph 101(3) (joint administrators) is to have effect as if after “87 to”
there were inserted “91, 98 and”.

34 Paragraph 103 (appointment of additional administrators) is to have effect
as if—

(a) 35in sub-paragraph (2) the words from the beginning to “order” were
omitted,

(b) in sub-paragraph (2), for paragraph (a) there were substituted—

“(a) the appropriate national authority, or”, and”

(c) sub-paragraphs (3) to (5) were omitted.

35 40Paragraph 106(2) (penalties) is to have effect as if paragraphs (a), (b), (f), (g),
(i) and (l) to (n) were omitted.

36 Paragraph 109 (references to extended periods) is to have effect as if “or 108”
were omitted.

37 Paragraph 111 (interpretation) is to have effect as if the following were
45substituted for it—

“111 (1) In this Schedule—

• “education administrator” includes a reference to a former
  education administrator, where the context requires;

Technical and Further Education BillPage 39

• “enters education administration” has the meaning given by
  paragraph 1;

• “hire-purchase agreement” includes a conditional sale
  agreement, a chattel leasing agreement and a retention of
  5title agreement;

• “in education administration” has the meaning given by
  paragraph 1;

• “market value” means the amount which would be realised
  on a sale of property in the open market by a willing
  10vendor.

(2) For the purposes of this Schedule a reference to an education
administration order includes a reference to an appointment
under paragraph 91 or 103.

(3) In this Schedule a reference to a provision of this Act other than
15this Schedule is to the provision as it applies to a further education
body by virtue of section 5 of the Technical and Further Education
Act 2016.

(4) In this Schedule a reference to action includes a reference to
inaction.””

20Specific modifications to section 251 of the Insolvency Act 1986

38 Section 251 of the Insolvency Act 1986 (definitions) as applied by paragraph
1 above is to have effect as if—

(a) for the definition of “prescribed” there were substituted—

• “““prescribed” means prescribed by rules made under
  25section 411 of the Insolvency Act 1986 as a result of
  section 30 of the Technical and Further Education Act
  2016;”,”

(b) the definitions of “officer” and “the rules” were omitted, and

(c) at the appropriate places, there were inserted—

• 30“““appropriate national authority”—

  (a)

  in relation to a further education body in
  England, means the Secretary of State;

  (b)

  in relation to a further education body in
  Wales, means the Welsh Ministers;

• 35““education administration application” has the
  meaning given by section 16 of the Technical and
  Further Education Act 2016;”,

• ““education administration order” has the meaning
  given by section 15 of the Technical and Further
  40Education Act 2016;”,

• ““education administration rules” has the meaning
  given by section 33 of the Technical and Further
  Education Act 2016;”,

• “education administrator” has the meaning given by
  45section 33 of the Technical and Further Education Act
  2016;”,

• ““further education body” has the meaning given by
  section 3 of the Technical and Further Education Act
  2016;”,

Technical and Further Education BillPage 40

• ““further education body in England” has the meaning
  given by section 3 of the Technical and Further
  Education Act 2016;”,

• ““further education body in Wales” has the meaning
  5given by section 3 of the Technical and Further
  Education Act 2016;”,

• ““the principal”, in relation to a relevant institution,
  means a principal appointed under the further
  education body’s instrument of government;”,

• 10““objective”, in relation to an education administration,
  is to be read in accordance with section 14 of the
  Technical and Further Education Act 2016;”,

• ““the relevant institution”—

  (a)

  in relation to a further education corporation,
  15means the institution which the corporation is
  established to conduct, and

  (b)

  in relation to a sixth form college corporation,
  means the relevant sixth form college as
  defined by section 90(1) of the Further and
  20Higher Education Act 1992;”,

• ““senior post holder”, in relation to a relevant
  institution, means a person appointed as a senior post
  holder by the further education body;”.”

Power to add modifications

39 (1) 25The Secretary of State may by regulations—

(a) amend paragraph 1(3)(a) so as to add further provisions to the list of
applicable provisions in Schedule B1 to the Insolvency Act 1986;

(b) amend this Schedule so as to add further modifications to that
Schedule.

(2) 30Regulations under this paragraph are subject to the affirmative resolution
procedure.

Section 24

SCHEDULE 4 Conduct of education administration: companies

Introductory

1 (1) 35The provisions of the Insolvency Act 1986 mentioned in sub-paragraph (2)
apply in relation to an education administration of a further education body
that is a company as they apply in relation to administration under that Act,
but with the modifications set out in this Schedule.

(2) The provisions are—

(a) 40sections 233 to 237 (management by administrators, liquidators etc);

(b) sections 238 to 241 (transactions at an undervalue and preferences);

(c) section 244 (extortionate credit bargains);

(d) section 246 (unenforceability of liens on books, etc);

(e) section 246ZA to 246ZC (fraudulent and wrongful trading);

(f) section 246ZD (power to assign certain causes of action);

(g) section 246B (use of websites);

(h) section 246C (creditors’ ability to opt out of receiving certain notices);

(i) 5sections 247, 248(b), 249 and 251 (interpretation);

(j) the applicable provisions of Schedule B1 (conduct of administration).

(3) The applicable provisions of Schedule B1 are—

(a) paragraphs 1, 40 to 49, 54, 59, 60, 61 to 68, 70 to 75, 79, 83 to 91, 98 to
104, 106 and 107 and 109 to 111, and

(b) 10paragraph 50 (until the repeal of that paragraph by Schedule 10 to
the Small Business, Enterprise and Employment Act 2015 comes into
force).

General modifications

2 The provisions of the Insolvency Act 1986 applied by paragraph 1 are to
15have effect as if for any term specified in column 1 of the table there were
substituted the term specified in column 2.

Specific modifications to Schedule B1 to the Insolvency Act 1986

3 Paragraphs 4 to 35 set out modifications to the applicable provisions of
Schedule B1 to the Insolvency Act 1986 as applied by paragraph 1 above.

4 Paragraph 1 (administration) is to have effect as if—

(a) 30for sub-paragraph (1) there were substituted—

“(1) In this Schedule “education administrator”, in relation to a
company, means a person appointed by the court for the
purposes of an education administration order to manage
its affairs, business and property.”, and”

(b) 35in sub-paragraph (2), for “Act” there were substituted “Schedule”.

5 Paragraph 40 (dismissal of pending winding-up petition) is to have effect as
if sub-paragraphs (1)(b), (2) and (3) were omitted.

6 Paragraph 42 (moratorium on insolvency proceedings) is to have effect as if
sub-paragraphs (4) and (5) were omitted.

7 Paragraph 43 (moratorium on other legal process) is to have effect as if sub-
paragraphs (5) and (6A) were omitted.

8 5Paragraph 44 (interim moratorium) is to have effect as if sub-paragraphs (2)
to (4), (6) and (7)(a) to (c) were omitted.

9 Paragraph 45(2) (publicity) is to have effect as if after paragraph (b) there
were inserted—

“(ba) a member of the governing body of the relevant institution,

(bb) 10any senior post holder or principal of the relevant
institution,”.”

10 Paragraph 46(6) (date for notifying administrator’s appointment) is to have
effect as if for paragraphs (a) to (c) there were substituted “the date on which
the education administration order comes into force”.

11 15Paragraph 47 (statement of affairs) is to have effect as if—

(a) in sub-paragraph (3), after paragraph (a) there were inserted—

“(aa) a member of the governing body of the relevant
institution,

(ab) any senior post holder or principal of the relevant
20institution, and”, and”

(b) sub-paragraph (5) were omitted.

12 Paragraph 49 (administrator’s proposals) is to have effect as if—

(a) sub-paragraphs (2)(b) and, (3) were omitted,

(b) in sub-paragraph (4), after paragraph (a) there were inserted—

“(aa) 25to the appropriate national authority,”, and”

(c) sub-paragraph (5)(b) and (6) were omitted.

13 Paragraph 54 is to have effect as if the following were substituted for it—

“54 (1) The education administrator of a company may on one or more
occasions revise the proposals included in the statement made
30under paragraph 49 in relation to the company.

(2) If the education administrator thinks that a revision is substantial,
the education administrator must send a copy of the revised
proposals—

(a) to the registrar of companies,

(b) 35to the appropriate national authority,

(c) to every creditor of the company, other than an opted-out
creditor, of whose claim and address the education
administrator is aware, and

(d) to every member of the company of whose address the
40education administrator is aware.

(3) A copy sent in accordance with sub-paragraph (2) must be sent
within the prescribed period.

(4) The education administrator is to be taken to have complied with
sub-paragraph (2)(d) if the education administrator publishes, in
45the prescribed manner, a notice undertaking to provide a copy of

the revised proposals free of charge to any member of the
company who applies in writing to a specified address.

(5) An education administrator who fails without reasonable excuse
to comply with this paragraph commits an offence.””

14 5Paragraph 60 (powers of an administrator) is to have effect as if the
following were substituted for it—

“60 (1) The education administrator of a company has the powers
specified in Schedule 1 to this Act.

(2) The education administrator of a company has the power to act on
10behalf of the company for the purposes of provision contained in
any legislation which confers a power on the company or imposes
a duty on it.

(3) In sub-paragraph (2) “legislation” means provision made by or
under any Act.””

15 15Paragraph 61 is to have effect as if the following were substituted for it—

“61 The education administrator—

(a) may appoint or remove a director of the company,

(b) may appoint or remove a member of the governing body
of the relevant institution,

(c) 20may appoint or remove the chief executive of the relevant
institution, and

(d) may appoint or remove the principal of the relevant
institution.””

16 Paragraph 64 (management powers may not be exercised without consent of
25the administrator) is to have effect as if in sub-subparagraph (1) after “an
officer of a company in administration” there were inserted “or the chief
executive of the relevant institution”.

17 Paragraph 68 (management duties of an administrator) is to have effect as
if—

(a) 30in sub-paragraph (1), for paragraphs (a) to (c) there were substituted
“the proposals as—

“(a) set out in the statement made under paragraph 49
in relation to the company, and

(b) from time to time revised under paragraph 54,

35for achieving the objective of the education
administration.”, and”

(b) in sub-paragraph (3), for paragraphs (a) to (d) there were substituted
“the directions are consistent with the achievement of the objective
of the education administration”.

18 40Paragraph 73 (protection for secured or preferential creditor) is to have effect
as if in sub-paragraph (3) for “or modified” there were substituted “under
paragraph 54”.

19 Paragraph 74 (challenge to administrator’s conduct) is to have effect as if—

(a) for sub-paragraph (2) there were substituted—

“(2) Where a company is in education administration, the
appropriate national authority, a creditor or member may
apply to the court claiming that the education
5administrator is not carrying out his or her functions in
accordance with section 22(2) or (4) of the Technical and
Further Education Act 2016 (general functions of
education administrator).”,”

(b) sub-paragraph (6)—

(i) 10at the end of paragraph (b) there were inserted “or”, and

(ii) paragraph (c) (and the “or” before it) were omitted, and

(c) after that sub-paragraph there were inserted—

“(7) In the case of a claim made by a creditor or member, the
court may grant a remedy or relief or make an order under
15this paragraph only if it has given the appropriate national
authority a reasonable opportunity of making
representations about the claim and the proposed remedy,
relief or order.

(8) Before the making of an order of the kind mentioned in
20sub-paragraph (4)(d)—

(a) the court must notify the education administrator
of the proposed order and of a period during which
the education administrator is to have the
opportunity of taking steps falling within sub-
25paragraph (9), and

(b) the period notified must have expired without the
taking of such of those steps as the court thinks
should have been taken,

and that period must be a reasonable period.

(9) 30The steps referred to in sub-paragraph (8) are—

(a) remedying the failure to carry out functions in
accordance with section 22(2) or (3) of the Technical
and Further Education Act 2016, and

(b) ensuring that the failure is not repeated.””

20 35Paragraph 75(2) (misfeasance) is to have effect as if after paragraph (b) there
were inserted—

“(ba) a person appointed as an administrator of the company
under the provisions of this Act as they have effect in relation
to administrators other than education administrators,”.”

21 40Paragraph 79 (end of administration) is to have effect as if—

(a) for sub-paragraphs (1) and (2) there were substituted—

“(1) On an application made by a person mentioned in sub-
paragraph (2), the court may provide for the appointment
of an education administrator of a company to cease to
45have effect from a specified time.

(2) An application may be made to the court under this
paragraph—

(a) by the appropriate national authority, or

(b) with the consent of the appropriate national
authority, by the education administrator.”, and”

(b) sub-paragraph (3) were omitted.

22 Paragraph 83 (notice to registrar when moving to voluntary liquidation) is
5to have effect as if—

(a) sub-paragraph (2) were omitted, and

(b) in sub-paragraph (3) after “may” there were inserted “, with the
consent of the appropriate national authority,”.

23 Paragraph 84 (notice to registrar when moving to dissolution) is to have
10effect as if—

(a) in sub-paragraph (1), for “to the registrar of companies” there were
substituted—

“(a) to the appropriate national authority, and

(b) if directed to do so by the appropriate national
15authority, to the registrar of companies”,”

(b) sub-paragraph (2) were omitted, and

(c) in sub-paragraphs (3) to (6), for “(1)”, in each place, there were
substituted “(1)(b)”.

24 Paragraph 87(2) (resignation of administrator) is to have effect as if for
20paragraphs (a) to (d) there were substituted “by notice in writing to the
court”.

25 Paragraph 89(2) (administrator ceasing to be qualified) is to have effect as if
for paragraphs (a) to (d) there were substituted “to the court”.

26 Paragraph 90 (filling vacancy in office of administrator) is to have effect as if
25for “Paragraphs 91 to 95 apply” there were substituted “Paragraph 91
applies”.

27 Paragraph 91 (vacancies in court appointments) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

“(1) The court may replace the education administrator on an
30application made—

(a) by the appropriate national authority, or

(b) where more than one person was appointed to act
jointly as the education administrator, by any of
those persons who remains in office.”, and”

(b) 35sub-paragraph (2) were omitted.

28 Paragraph 98 (discharge from liability on vacation of office) is to have effect
as if sub-paragraphs (2)(b) and (ba), (3) and (3A) were omitted.

29 Paragraph 99 (charges and liabilities upon vacation of office by
administrator) is to have effect as if after sub-paragraph (6) there were
40inserted—

“(7) Where a loan is made under section 25 of the Technical and
Further Education Act 2016 before cessation, sub-paragraph (4)
does not apply in relation to the loan or interest on it and—

(a) if the terms of the loan provide for this paragraph to apply,
45any sum that must be paid by the company in respect of
the loan or interest shall be—

(i) charged on and payable out of property of which
the education administrator had custody or control
immediately before cessation, and