Corporate Insolvency and Governance Bill (HC Bill 128)
SCHEDULE 3 continued
Contents page 17-19 20-37 38-39 40-49 50-59 60-69 70-79 80-89 90-99 100-109 110-119 120-129 130-139 140-149 150-169 169-170 170-179 180-189 190-199 200-208 210-219 Last page
Corporate Insolvency and Governance BillPage 110
33 (1) Schedule 10 (punishment of offences under the Act) is amended as follows.
(2) Omit the entries relating to Schedule A1.
(3) At the appropriate place insert—
“A8(4) | Directors failing to notify monitor of beginning of moratorium. |
1. On indictment. 2. Summary. |
2 years or a fine or both. On conviction in England and Wales: 12 months or a fine or both. On conviction in Scotland: 12 months or the statutory maximum or both. |
A8(5) | Monitor failing to notify creditors etc of beginning of moratorium. |
Summary. | Level 3 on the standard scale. |
A17(6) | Directors failing to notify monitor of change in end of moratorium. |
1. On indictment. 2. Summary. |
2 years or a fine or both. On conviction in England and Wales: 12 months or a fine or both. On conviction in Scotland: 12 months or the statutory maximum or both. |
A17(7) | Monitor failing to notify creditors etc of change in end of moratorium. |
Summary. | Level 3 on the standard scale. |
A19(5) | Company or officer failing to state in correspondence etc that moratorium in force. |
Summary. | Level 3 on the standard scale. |
Corporate Insolvency and Governance BillPage 111
A24(4) | Directors failing to notify monitor of insolvency proceedings etc. |
1. On indictment. 2. Summary. |
2 years or a fine or both. On conviction in England and Wales: 12 months or a fine or both. On conviction in Scotland: 12 months or the statutory maximum or both. |
A25(3)(a) | Company obtaining credit without disclosing existence of moratorium. |
1. On indictment. 2. Summary. |
A fine. On conviction in England and Wales: a fine. On conviction in Scotland: the statutory maximum. |
A25(3)(b) | Obtaining credit for company without disclosing existence of moratorium. |
1. On indictment. 2. Summary. |
2 years or a fine or both. On conviction in England and Wales: 12 months or a fine or both. On conviction in Scotland: 12 months or the statutory maximum or both. |
A26(4)(a) | Company granting security without monitor’s consent. |
1. On indictment. 2. Summary. |
A fine. On conviction in England and Wales: a fine. On conviction in Scotland: the statutory maximum. |
Corporate Insolvency and Governance BillPage 112
A26(4)(b) | Authorising or permitting company to do so. |
1. On indictment. 2. Summary. |
2 years or a fine or both. On conviction in England and Wales: 12 months or a fine or both. On conviction in Scotland: 12 months or the statutory maximum or both. |
A27(1)(a) | Company entering into market contract, etc. |
1. On indictment. 2. Summary. |
A fine. On conviction in England and Wales: a fine. On conviction in Scotland: the statutory maximum. |
A27(1)(b) | Authorising or permitting company to do so. |
1. On indictment. 2. Summary. |
2 years or a fine or both. On conviction in England and Wales: 12 months or a fine or both. On conviction in Scotland: 12 months or the statutory maximum or both. |
A28(5)(a) | Company making unauthorised payments. |
1. On indictment. 2. Summary. |
A fine. On conviction in England and Wales: a fine. On conviction in Scotland: the statutory maximum. |
Corporate Insolvency and Governance BillPage 113
A28(5)(b) | Authorising or permitting company to do so. |
1. On indictment. 2. Summary. |
2 years or a fine or both. On conviction in England and Wales: 12 months or a fine or both. On conviction in Scotland: 12 months or the statutory maximum or both. |
A29(6)(a) | Company making unauthorised disposal of property. |
1. On indictment. 2. Summary. |
A fine. On conviction in England and Wales: a fine. On conviction in Scotland: the statutory maximum. |
A29(6)(b) | Authorising or permitting such a disposal. |
1. On indictment. 2. Summary. |
2 years or a fine or both. On conviction in England and Wales: 12 months or a fine or both. On conviction in Scotland: 12 months or the statutory maximum or both. |
A30(2)(a) | Unauthorised disposal of hire- purchase property. |
1. On indictment. 2. Summary. |
A fine. On conviction in England and Wales: a fine. On conviction in Scotland: the statutory maximum. |
Corporate Insolvency and Governance BillPage 114
A30(2)(b) | Authorising or permitting such a disposal. |
1. On indictment. 2. Summary. |
2 years or a fine or both. On conviction in England and Wales: 12 months or a fine or both. On conviction in Scotland: 12 months or the statutory maximum or both. |
A31(8) | Directors failing to send to registrar copy of court order permitting disposal of charged property. |
Summary. | Level 3 on the standard scale. |
A31(10)(a) | Company failing to comply with requirements relating to disposal of charged property. |
1. On indictment. 2. Summary. |
A fine. On conviction in England and Wales: a fine. On conviction in Scotland: the statutory maximum. |
A31(10)(b) | Authorising or permitting such a failure. |
1. On indictment. 2. Summary. |
2 years or a fine or both. On conviction in England and Wales: 12 months or a fine or both. On conviction in Scotland: 12 months or the statutory maximum or both. |
Corporate Insolvency and Governance BillPage 115
A32(4)(a) | Company failing to comply with requirements relating to disposal of hire-purchase property. |
1. On indictment. 2. Summary. |
A fine. On conviction in England and Wales: a fine. On conviction in Scotland: the statutory maximum. |
A32(4)(b) | Authorising or permitting such a failure. |
1. On indictment. 2. Summary. |
2 years or a fine or both. On conviction in England and Wales: 12 months or a fine or both. On conviction in Scotland: 12 months or the statutory maximum or both. |
A32(6) | Directors failing to send to registrar copy of court order permitting disposal of hire-purchase property. |
Summary. | Level 3 on the standard scale. |
A39(9) | Monitor failing to notify creditors etc of change in monitor. |
Summary. | Level 3 on the standard scale. |
A45(1) | Fraud or privity to fraud during or in anticipation of moratorium. |
1. On indictment. 2. Summary. |
2 years or a fine or both. On conviction in England and Wales: 12 months or a fine or both. On conviction in Scotland: 12 months or the statutory maximum or both. |
Corporate Insolvency and Governance BillPage 116
A45(4) | Knowingly taking in pawn or pledge, or otherwise receiving, company property. |
1. On indictment. 2. Summary. |
2 years or a fine or both. On conviction in England and Wales: 12 months or a fine or both. On conviction in Scotland: 12 months or the statutory maximum or both. |
A46(1) | False representation or fraud for purpose of obtaining or extending moratorium. |
1. On indictment. 2. Summary. |
2 years or a fine or both. On conviction in England and Wales: 12 months or a fine or both. On conviction in Scotland: 12 months or the statutory maximum or both. |
A48(5) | Directors failing to notify regulator of qualifying decision procedure in relation to regulated company |
1. On indictment. 2. Summary. |
2 years or a fine or both. On conviction in England and Wales: 12 months or a fine or both. On conviction in Scotland: 12 months or the statutory maximum or both.” |
Building Societies Act 1986
34
In Schedule 15A to the Building Societies Act 1986 (application of other
companies insolvency legislation to building societies), in paragraph 1(2)(a),
omit “(except section 1A)”.
Corporate Insolvency and Governance BillPage 117
The Financial Markets and Insolvency (Settlement Finality) Regulations 1999
35
In regulation 19 of the Financial Markets and Insolvency (Settlement
Finality) Regulations 1999 (S.I. 1999/2979S.I. 1999/2979) (administration orders, etc), omit
paragraph (4).
5Limited Liability Partnerships Act 2000
36
In section 14 of the Limited Liability Partnerships Act 2000 (regulations to
make provision about insolvency and winding up), in subsection (1)(a), for
“Parts 1” substitute “Parts A1”.
37
The provision that may be made under section 16(1) of the Limited Liability
10Partnerships Act 2000 (consequential amendments) includes provision in
consequence of the amendment made by paragraph 38.
The Limited Liability Partnerships Regulations 2001
38
In the Limited Liability Partnerships Regulations 2001 (S.I. 2001/1090S.I. 2001/1090), in
Part 4 (winding up and insolvency), in regulation 5 (application of the
15Insolvency Act 1986 to limited liability partnerships), in paragraph (1)(a)
after “Parts” insert “A1,”.
The Financial Services and Markets Act 2000 (Disclosure of Confidential Information)
Regulations 2001
39
In Schedule 2 to the Financial Services and Markets Act 2000 (Disclosure of
20Confidential Information) Regulations 2001 (S.I. 2001/2188S.I. 2001/2188) (disclosure of
confidential information), at the end of the table insert—
““The monitor in relation to a moratorium under Part A1 of the Insolvency Act 1986 |
The monitor’s functions in relation to the moratorium”. |
25The Financial Collateral Arrangements (No.2) Regulations 2003
40
In regulation 8 of the Financial Collateral Arrangements (No.2) Regulations
2003 (S.I. 2003/3226S.I. 2003/3226) (certain legislation restricting enforcement of security
not to apply to financial collateral arrangements), omit paragraph (5).
The Insolvency Practitioners Regulations 2005
41
30In regulation 2 of the Insolvency Practitioners Regulations 2005 (S.I. 2005/
524) (interpretation: general), in paragraph (2), before sub-paragraph (a)
insert—
“(za)
where the insolvency practitioner acts as the monitor in
relation to a moratorium under Part A1 of the Act, whichever
35is the earlier of the date on which—
(i) the moratorium comes to an end, or
(ii)
the insolvency practitioner otherwise ceases to act as
the monitor in relation to the moratorium;”.
Corporate Insolvency and Governance BillPage 118
Banking Act 2009
42
In section 154 of the Banking Act 2009 (winding-up or voluntary
arrangement), in subsection (3A)—
(a) omit “and Schedule A1”;
(b) 5for “9” substitute “8”.
Charities Act 2011
43 The Charities Act 2011 is amended as follows.
44 (1) Section 245 is amended as follows.
(2) After subsection (1), insert—
“(1A)
10Regulations under subsection (1)(b) may not apply Part A1 of the
Insolvency Act 1986 (moratorium) in relation to a CIO that is
registered as a social landlord under Part 1 of the Housing Act 1996
(but see section 247A).”
(3) After subsection (3), insert—
“(3A)
15In relation to a CIO that is a private registered provider of social
housing, the power under section 347(3)(b) may be used to amend,
disapply, or modify (in ways specified in the regulations) any
provision made by or under Part 2 of the Housing and Regeneration
Act 2008 or Chapter 5 of Part 4 of the Housing and Planning Act
202016.”
45 After section 247 insert—
“247A Regulations about moratorium for certain CIOs
(1)
The Welsh Ministers may by regulations made by statutory
instrument provide for Part A1 of the Insolvency Act 1986 to apply
25(with such modifications as may be specified in the regulations) in
relation to a CIO that is a registered social landlord.
(2)
The regulations may make provision in connection with the
interaction between Part A1 of the Insolvency Act 1986 as applied by
the regulations and any other insolvency procedure in relation to a
30CIO that is a registered social landlord.
(3) The regulations may make—
(a) different provision for different purposes, and
(b)
such supplemental, incidental, consequential, transitory or
transitional provision or savings as the Welsh Ministers
35consider appropriate.
(4)
The power to make regulations under this section includes power to
amend, disapply, or modify (in ways specified in the regulations)
any provision made by legislation.
(5)
A statutory instrument containing the regulations may not be made
40unless a draft of the statutory instrument containing them has been
laid before and approved by a resolution of Senedd Cymru.
Corporate Insolvency and Governance BillPage 119
(6)
Before making any regulations under this section the Welsh
Ministers must consult such persons or bodies of persons as the
Welsh Ministers consider appropriate.
(7) In this section—
-
5“insolvency procedure” includes the provision made by
sections 39 to 50 of the Housing Act 1996; -
“legislation” means—
(a)an Act of Parliament or an Act or Measure of Senedd
Cymru; or(b)10subordinate legislation (within the meaning of the
Interpretation Act 1978) made under such an Act or
Measure; -
“registered social landlord” means registered as a social
landlord under Part 1 of the Housing Act 1996.”
15The Investment Bank Special Administration Regulations 2011
46
The Investment Bank Special Administration Regulations 2011 (S.I. 2011/
245) are amended as follows.
47
In regulation 21 (dissolution or voluntary arrangement), in paragraph
(5A)—
(a) 20omit “and Schedule A1”;
(b) for the first “9” substitute “8”.
48 In Schedule 2 (bank administration), in paragraph 16(3)(ba)—
(a) omit “and Schedule A1”;
(b) for the first “9” substitute “8”.
25The Charitable Incorporated Organisations (Insolvency and Dissolution) Regulations 2012
49
(1)
Paragraph 1 of Schedule 1 to the Charitable Incorporated Organisations
(Insolvency and Dissolution) Regulations 2012 (S.I 2012/3013) (application
of the Insolvency Act 1986) is amended as follows.
(2)
In sub-paragraph (1), at the beginning insert “Subject to sub-paragraph
30(2A)”.
(3) In sub-paragraph (2)(a), for “Parts 1” substitute “Parts A1”.
(4) After sub-paragraph (2), insert—
“(2A) Part A1 of the 1986 Act does not apply in relation to a CIO that is—
(a) a private registered provider of social housing;
(b)
35registered as a social landlord under Part 1 of the Housing
Act 1996.”
Co-operative and Community Benefit Societies Act 2014
50
The Co-operative and Community Benefit Societies Act 2014 is amended as
follows.
51
40In section 106 (appointment of inspectors and calling of special meetings),
omit subsection (2).