Corporate Insolvency and Governance Bill (HC Bill 128)

(d) a statement that the proposed monitor consents to act as monitor in
relation to the company.

(2) The statement must be made within the period of 5 days ending with the day
on which it is filed with the court.

(3) 5In this paragraph “IP number” means the number assigned to an office-
holder as an insolvency practitioner by the Secretary of State.

Replacement of monitor or additional monitor: notification

39 A notice under section A39(8) of the Insolvency Act 1986 must state—

(a) the provision under which it is given,

(b) 10the nature of the notice,

(c) the date of the notice,

(d) the identification details for the company to which it relates,

(e) that it is given by the monitor acting in that capacity, and

(f) the name and contact details of the monitor.

(1) 15The notice must be authenticated by the monitor.

(2) Rule 1.5 of the England and Wales Insolvency Rules applies for the purposes
of authentication under this paragraph.

Challenge to monitor’s remuneration

40 (1) An administrator or liquidator of a company may apply to the court on the
20ground that remuneration charged by the monitor in relation to a prior
moratorium for the company under Part A1 of the Insolvency Act 1986 was
excessive.

(2) An application under this paragraph may not be made after the end of the
period of 2 years beginning with the day after the moratorium ends.

(3) 25On an application under this paragraph the court may—

(a) dismiss the application,

(b) order the monitor to repay some or all of the remuneration, or

(c) make such other order as it thinks fit.

(4) The costs of an application under this paragraph are, unless the court orders
30otherwise, to be paid as an expense of the administration or liquidation.

Challenge to directors’ actions: qualifying decision procedure

41 Where the court makes an order by virtue of section A44(4)(c) of the
Insolvency Act 1986 requiring a decision of a company’s creditors, the
following provisions of the England and Wales Insolvency Rules apply for
35the purposes of that decision to the extent set out in the court’s order and
subject to any modifications set out in the court’s order—

(a) Part 15 (decision making);

(b) Part 16 (proxies).

Priority of moratorium debts etc in subsequent winding up

42 (1) Where section 174A of the Insolvency Act 1986 applies, the moratorium
debts and pre-moratorium debts mentioned in subsection (2)(b) of that
section are payable in the following order of priority—

(a) 5amounts payable in respect of goods or services supplied during the
moratorium under a contract where, but for section 233B(3) or (4) of
that Act, the supplier would not have had to make that supply;

(b) wages or salary arising under a contract of employment;

(c) other debts or other liabilities apart from the monitor’s remuneration
10or expenses;

(d) the monitor’s remuneration or expenses.

(2) In this paragraph “wages or salary” has the same meaning as in section A18
of the Insolvency Act 1986.

Priority of moratorium debts etc in subsequent administration

43 (1) 15Where paragraph 64A(1) of Schedule B1 to the Insolvency Act 1986 applies,
the moratorium debts and pre-moratorium debts mentioned in paragraph
64A(2) of that Schedule are payable in the following order of priority—

(a) amounts payable in respect of goods or services supplied during the
moratorium under a contract where, but for section 233B(3) or (4) of
20that Act, the supplier would not have had to make that supply;

(b) wages or salary arising under a contract of employment;

(c) other debts or other liabilities apart from the monitor’s remuneration
or expenses;

(d) the monitor’s remuneration or expenses.

(2) 25In this paragraph “wages or salary” has the same meaning as in section A18
of the Insolvency Act 1986.

Prescribed format of documents

44 Rule 1.4 of the England and Wales Insolvency Rules (requirement for
writing and form of documents) applies for the purposes of Part A1 of the
30Insolvency Act 1986.

45 (1) The following provisions of the England and Wales Insolvency Rules apply,
so far as relevant, to any requirement imposed by a provision of this Part of
this Schedule—

• rule 1.8 (prescribed format of documents), and

• 35rule 1.9(1) (variations from prescribed contents).

(2) In their application by virtue of sub-paragraph (1), a reference in rule 1.8 or
1.9(1) to the requirements of a rule is to be read as a reference to the
requirements of the provision of this Part of this Schedule.

Delivery of documents

46 40The following provisions of Chapter 9 of Part 1 of the England and Wales
Insolvency Rules apply for the purposes of proceedings under Part A1 of the
Insolvency Act 1986 as if rule 1.36(1) included a reference to such
proceedings—

• rule 1.36(2) (delivery to registrar of companies);

Corporate Insolvency and Governance BillPage 132

• rule 1.40 (delivery of documents to authorised recipients);

• rule 1.41 (delivery of documents to joint office-holders);

• rule 1.42 (postal delivery of documents);

• rule 1.43 (delivery by document exchange);

• 5rule 1.44 (personal delivery of documents);

• rule 1.45 (electronic delivery of documents).

Applications to court

47 (1) The provisions of the England and Wales Insolvency Rules specified in the
Table apply, so far as relevant, for the purposes of proceedings under—

(a) 10Part A1 of the Insolvency Act 1986;

(b) this Part of this Schedule.

(2) In their application by virtue of sub-paragraph (1), the provisions listed in
the Table have effect with—

(a) the modification set out in sub-paragraph (3),

(b) 15the modifications specified in the Table, and

(c) any other necessary modifications.

(3) The modification is that any reference to Part 1 of the Insolvency Act 1986
includes a reference to Part A1 of that Act and this Part of this Schedule.

(4) This is the Table referred to in sub-paragraphs (1) and (2)—

Identification details for a company

48 (1) Where a provision of this Part of this Schedule requires a document to
contain identification details for a company that is registered under the
25Companies Act 2006 in England and Wales, the following information must
be given—

(a) the company’s registered name;

(b) its registered number;

(2) Where a provision of this Part of this Schedule requires a document to
30contain identification details for a company that has registered particulars
under section 1046(1) of the Companies Act 2006 (registered overseas
companies), the following information must be given—

(a) the name registered by the company under section 1047 of that Act,

(b) the number under which it is registered, and

(c) 35the country or territory in which it is incorporated.

(3)

Where a provision of this Part of this Schedule requires a document to
contain identification details for an unregistered company that does not
come within sub-paragraph (2) the following information must be given—

(a) the company’s name, and

(b) 5the postal address of any principal place of business.

Contact details of a monitor or other office-holder

49 Where a provision of this Part of this Schedule requires a document to
contain contact details of a monitor or other office-holder, the following
information must be given—

(a) 10a postal address for the monitor or office-holder, and

(b) either an email address, or a telephone number, through which the
monitor may be contacted.

“The England and Wales Insolvency Rules”

50 In this Part of this Schedule “the England and Wales Insolvency Rules”
15means the Insolvency (England and Wales) Rules 2016.

Interpretation: general

51 Expressions used in this Part of this Schedule are to be construed as if this
Part of this Schedule were contained in Part A1 of the Insolvency Act 1986.

20Part 4 Temporary rules: Scotland

Introductory

52 Paragraphs 53 to 90 cease to have effect at the end of the relevant period,
subject to paragraph 3.

25Definition of “the court”

53 Section A52(1) of the Insolvency Act 1986 has effect as if for the definition of
“the court” there were substituted—

• “““the court”, in relation to a company, means a court having
  jurisdiction to wind up the company;”.

30Content of documents relating to the obtaining or extending of a moratorium: general

54 A notice or statement under section A6(1), A8(2), A10(1), A11(1) or A13(2) of
the Insolvency Act 1986 must state—

(a) the provision under which it is given or made,

(b) the nature of the notice or statement,

(c) 35the date of the notice or statement, and

(d) the identification details for the company to which it relates.

Authentication of documents relating to obtaining or extending moratorium: general

55 (1) A notice or statement under section A6(1), A10(1), A11(1) or A13(2) of the
Insolvency Act 1986 must be authenticated by or on behalf of the person
giving the notice or making the statement.

(2) 5A notice under section A8(2)(a) of the Insolvency Act 1986 must be
authenticated by the monitor.

(3) Rule 1.6 of the Scottish Insolvency Rules applies for the purposes of
authentication under this paragraph.

Notice that directors wish to obtain a moratorium

56 10A notice under section A6(1)(a) of the Insolvency Act 1986 must state—

(a) the company’s address for service, and

(b) the court in which the documents are to be lodged under section A3
or the application under section A4 or A5 is to be made.

Proposed monitor’s statement and consent to act

57 (1) 15A statement under section A6(1)(b) of the Insolvency Act 1986 must be
headed “Proposed monitor’s statement and consent to act” and must contain
the following—

(a) a certificate that the proposed monitor is qualified to act as an
insolvency practitioner in relation to the company,

(b) 20the proposed monitor’s IP number,

(c) the name of the relevant recognised professional body which is the
source of the proposed monitor’s authorisation to act in relation to
the company, and

(d) a statement that the proposed monitor consents to act as monitor in
25relation to the company.

(2) In this paragraph “IP number” means the number assigned to an office-
holder as an insolvency practitioner by the Secretary of State.

Timing of statements for obtaining moratorium

58 Each statement under section A6(1)(b) to (e) of the Insolvency Act 1986 must
30be made within the period of 5 days ending with the day on which the
documents under section A6(1)(a) to (e) are lodged in the court (or, if the
documents are lodged on different days, the last of those days).

Notice by monitor where moratorium comes into force

59 A notice under section A8(2) of the Insolvency Act 1986 must—

(a) 35state that it is given by the monitor acting in that capacity, and

(b) state the name and contact details of the monitor.

Notice that directors wish to extend a moratorium

60 A notice under section A10(1)(a) or A11(1)(a) of the Insolvency Act 1986
must state—

(a) 40the company’s address for service,

(b) the court in which the notice is to be lodged.

Extension under section A10 or A11 of the Insolvency Act 1986: notices and statements

61 A statement by the monitor under section A10(1)(d) or A11(1)(d) of the
Insolvency Act 1986 must contain contact details of the monitor.

5Timing of statements for extension under section A10 or A11

62 Each statement under section A10(1)(b) to (d) or A11(1)(b) to (e) of the
Insolvency Act 1986 must be made within the period of 3 days ending with
the day on which the documents under section A10(1)(a) to (d) or A11(1)(a)
to (e) are lodged in the court (or, if the documents are lodged on different
10days, the last of those days).

Obtaining creditor consent: qualifying decision procedure

63 (1) The following apply, so far as relevant, for the purposes of a decision to
consent to a revised end date for a moratorium under section A12 of the
Insolvency Act 1986—

(a) 15Part 5 of the Scottish Insolvency Rules (decision making), apart from
rule 5.8(3)(f) and (g);

(b) Part 6 of the Scottish Insolvency Rules (proxies), apart from rule 6.7.

(2) In its application by virtue of sub-paragraph (1), Part 5 has effect subject to
the modifications set out in paragraphs 64 to 68.

64 20Rule 5.11 of the Scottish Insolvency Rules (notice of decision procedures etc)
has effect as if, before the first entry in the table, there were inserted—

65 Rule 5.26 of the Scottish Insolvency Rules (creditors’ voting rights) has effect
as if, before paragraph (1), there were inserted—

“(A1) 30A pre-moratorium creditor is entitled to vote in a decision procedure
under section A12 of the Act only if—

(a) the creditor has delivered to the convener a statement of
claim and documentary evidence of debt, including any
calculation for the purposes of rule 5.28 or 5.29,

(b) 35the statement of claim and documentary evidence of debt
were received by the convener not later than the decision
date, or in the case of a meeting, at or before the meeting, and

(c) the statement of claim and documentary evidence of debt has
been admitted for the purposes of entitlement to vote.”

66 40Rule 5.28 of the Scottish Insolvency Rules (calculation of voting rights) has
effect as if—

(a) before paragraph (1) there were inserted—

“(A1) In relation to a decision to consent to a revised end date for a
moratorium under section A12 of the Act votes are calculated
according to the amount of each creditor’s claim at the
5decision date.”;

(b) after paragraph (2) there were inserted—

“(2A) But in relation to a decision to consent to a revised end date
for a moratorium under section A12 of the Act, a debt of an
unliquidated or unascertained amount is to be valued at £1
10for the purposes of voting unless the convener or chair or an
appointed person decides to put a higher value on it.”;

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

“(c) where the decision relates to whether to consent to a
revised end date for a moratorium under section A12
15of the Act.”

67 Rule 5.29 of the Scottish Insolvency Rules (calculation of voting rights: hire-
purchase agreements) has effect as if, before paragraph (1), there were
inserted—

“(A1) In relation to a decision to consent to a revised end date for a
20moratorium under section A12 of the Act, a pre-moratorium creditor
under a hire-purchase agreement is entitled to vote in respect of the
amount of the debt due and payable by the company at the decision
date.

(B1) In calculating the amount of any debt for the purpose of paragraph
25(A1), no account is to be taken of any amount attributable to the
exercise of any right under the relevant agreement so far as the right
has become exercisable solely by virtue of a moratorium for the
company coming into force.”

68 Rule 5.31 of the Scottish Insolvency Rules (requisite majorities) has effect as
30if, before paragraph (1), there were inserted—

“(A1) Subject to paragraph (B1), a decision to consent to a revised end date
for a moratorium under section A12 of the Act is made if, of those
voting—

(a) a majority (in value) of the pre-moratorium creditors who are
35secured creditors vote in favour of the proposed decision,
and

(b) a majority (in value) of the pre-moratorium creditors who are
unsecured creditors vote in favour of the proposed decision.

(B1) But a decision to consent to a revised end date for a moratorium
40under section A12 of the Act is not made if, of those voting either—

(a) a majority of the pre-moratorium creditors who are
unconnected secured creditors vote against the proposed end
date, or

(b) a majority of the pre-moratorium creditors who are
45unconnected unsecured creditors vote against the proposed
end date.

(C1) For the purposes of paragraph (B1)—

(a) a creditor is unconnected unless the convener or chair
decides that the creditor is connected, and

(b) the total value of the unconnected creditors is the total value
of those unconnected creditors whose claims have been
5admitted for voting.”

Content of application to the court for extension of moratorium

69 (1) An application by the directors of a company for the extension of a
moratorium under section A13 of the Insolvency Act 1986 must state—

(a) that it is made under that section,

(b) 10the length of the extension sought,

(c) identification details for the company to which the application
relates,

(d) the company’s address for service, and

(e) the court in which the application is made.

(2) 15The application must be authenticated by or on behalf of the directors.

(3) Rule 1.6 of the Scottish Insolvency Rules applies for the purposes of
authentication under sub-paragraph (2).

Timing of statements accompanying application to court for extension of moratorium

70 A statement under section A13(2) must be made within the period of 3 days
20ending with the day on which the application under that section is made.

Notices about change in end of moratorium

71 (1) A notice under section A17(1) of the Insolvency Act 1986 must be given
within the period of 5 days beginning with the day on which the duty to give
the notice arises.

(2) 25The notice must state—

(a) the name of the company to which it relates, and

(b) the provision by virtue of which the moratorium was extended or
came to an end.

72 (1) A notice under section A17(2) or (3) of the Insolvency Act 1986 must be given
30within the period of 5 days beginning with the day on which the duty to give
the notice arises.

(2) The notice must state—

(a) the provision under which it is given,

(b) the nature of the notice,

(c) 35the date of the notice,

(d) that it is given by the monitor acting in that capacity,

(e) the name and contact details of the monitor, and

(f) the identification details for the company to which it relates.

(3) A notice under section A17(2) or (3) of the Insolvency Act 1986 that is given
40to the registrar of companies must be authenticated by or on behalf of the
monitor.

(4) Rule 1.6 of the Scottish Insolvency Rules applies for the purposes of
authentication under sub-paragraph (3).

73 Where a moratorium comes to an end under section A16 of the Insolvency
Act 1986 because the company has entered into a relevant insolvency
5procedure within the meaning of that section, the notices under section
A17(1) and (2) must state—

(a) the date on which the company entered into the relevant insolvency
procedure, and

(b) the name and contact details of the supervisor of the voluntary
10arrangement, the administrator or the liquidator.

74 (1) A notice under section A17(4) of the Insolvency Act 1986 must be given
within the period of 3 business days beginning with the day on which the
notice under section A38(1) is lodged in the court.

(2) The notice under section A17(4) of that Act must be accompanied by the
15notice that the monitor has lodged in the court under section A38(1) of that
Act.

Notification by directors of insolvency proceedings etc

75 (1) A notice under section A24(1) of the Insolvency Act 1986 must be given
before the period of 3 days ending with the day on which the step mentioned
20there is taken.

(2) A notice under section A24(2) of the Insolvency Act 1986 must be given
within the period of 3 days beginning with the day on which the duty to give
the notice arises.

Notice of termination of moratorium

76 (1) 25A notice under section A38(1) of the Insolvency Act 1986 must be lodged in
the court as soon as practicable after the duty in that subsection arises.

(2) The notice must state—

(a) the provision under which it is given,

(b) the nature of the notice,

(c) 30the date of the notice,

(d) the name and contact details of the monitor,

(e) the identification details for the company to which it relates,

(f) the grounds on which the moratorium is being terminated,

(g) the monitor’s reasons for concluding that those grounds are made
35out,

(h) the date on which the monitor concluded that those grounds were
made out, and

(i) the court in which the notice is to be lodged.

(3) The notice must be authenticated by or on behalf of the monitor.

(4) 40Rule 1.6 of the Scottish Insolvency Rules applies for the purposes of
authentication under sub-paragraph (3).