Deregulation Bill (HL Bill 58)

(6) A variation under subsection (5) is to be made by giving notice in writing to the
licensee.

(7) The power under section 15(6) of the 1986 Act may be exercised so as to extend
to any of the Channel Islands, the Isle of Man or any British overseas territory
5any provision made by this section (subject to any specified exceptions or
modifications).

13 Agricultural Holdings Act 1986: resolution of disputes by third party
determination

Schedule 4 amends the Agricultural Holdings Act 1986 to provide for certain
10matters arising under the Act to be capable of third party determination.

14 Shippers etc of gas

(1) In Part 1 of the Energy Act 2008 (gas importation and storage), after section 3
insert—

“3A Exception for unloading to an installation in certain circumstances

15The prohibition in section 2(1) does not apply to a person (“A”) who
uses a controlled place for the unloading of gas to an installation if—

(a) the installation is maintained by another person (“B”) who has
a licence in respect of the maintenance of the installation and the
use of a controlled place for the unloading of gas to it, and

(b) 20B consents to the use by A of the controlled place for the
unloading of gas to the installation.”

(2) In consequence of subsection (1), in section 2(2) of the 2008 Act, for “section 3”
substitute “sections 3 and 3A”.

15 Suppliers of fuel and fireplaces

(1) 25Part 3 of the Clean Air Act 1993 (smoke control areas) is amended as follows.

(2) In section 20 (offence of emitting smoke in smoke control area where emission
caused by use of fuel other than authorised fuel), after subsection (5) insert—

“(5ZA) In the application of this Part to England, “authorised fuel” means a
fuel included in a list of authorised fuels kept by the Secretary of State
30for the purposes of this Part.

(5ZB) The Secretary of State must—

(a) publish the list of authorised fuels, and

(b) publish a revised copy of the list as soon as is reasonably
practicable after any change is made to it.

(5ZC) 35The list must be published in such manner as the Secretary of State
considers appropriate.”

(3) In that section, in subsection (6) as it applies in relation to England and Wales
(definition of “authorised fuel”), for “In” substitute “Except as provided by
subsection (5ZA), in”.

(4) 40In section 21 (power by order to exempt certain fireplaces), at the beginning

insert—

“(A1) For the purposes of the application of this Part to England, the Secretary
of State may exempt any class of fireplace from the provisions of section
20 (prohibition of smoke emissions in smoke control area) if he is
5satisfied that such fireplaces can be used for burning fuel other than
authorised fuels without producing any smoke or a substantial
quantity of smoke.

(A2) An exemption under subsection (A1) may be made subject to such
conditions as the Secretary of State considers appropriate.

(A3) 10The Secretary of State must—

(a) publish a list of those classes of fireplace that are exempt under
subsection (A1) including details of any conditions to which an
exemption is subject;

(b) publish a revised copy of the list as soon as is reasonably
15practicable after any change is made to the classes of fireplace
that are so exempt or to the conditions to which an exemption is
subject.

(A4) The list must be published in such manner as the Secretary of State
considers appropriate.”

(5) 20In that section as it applies in relation to England and Wales, the existing text
becomes subsection (5) and in that subsection, for “The” substitute “Except
where subsection (A1) applies, the”.

(6) In the sidenote to that section, omit “by order”.

(7) In section 29 (interpretation of Part 3), in the definition of “authorised fuel”, for
25“20(6)” substitute “20”.

16 Sellers of knitting yarn

(1) The Weights and Measures (Knitting Yarns) Order 1988 (S.I. 1988/895S.I. 1988/895)
(quantities in which yarn is to be sold) is revoked.

(2) In consequence of subsection (1), in the Weights and Measures (Specified
30Quantities) (Pre-packed Products) Regulations 2009 (S.I. 2009/663S.I. 2009/663), omit
regulation 3.

Companies and insolvency

17 Authorisation of insolvency practitioners

(1) Part 13 of the Insolvency Act 1986 (insolvency practitioners and their
35qualification) is amended in accordance with subsections (2) to (4).

(2) In section 390 (persons not qualified to act as insolvency practitioners), for
subsection (2) substitute—

“(2) A person is not qualified to act as an insolvency practitioner at any time
unless at that time the person is appropriately authorised under section
40390A.”

(3) After section 390 insert—

“390A Authorisation

(1) In this Part—

• “partial authorisation” means authorisation to act as an insolvency
  5practitioner—

  (a)

  only in relation to companies, or

  (b)

  only in relation to individuals;

• “full authorisation” means authorisation to act as an insolvency
  practitioner in relation to companies, individuals and insolvent
  10partnerships;

• “partially authorised” and “fully authorised” are to be construed
  accordingly.

(2) A person is fully authorised under this section to act as an insolvency
practitioner—

(a) 15by virtue of being a member of a professional body recognised
under section 391(1) and being permitted to act as an insolvency
practitioner for all purposes by or under the rules of that body,
or

(b) by holding an authorisation granted by the Department of
20Enterprise, Trade and Investment in Northern Ireland under
Article 352 of the Insolvency (Northern Ireland) Order 1989.

(3) A person is partially authorised under this section to act as an
insolvency practitioner—

(a) by virtue of being a member of a professional body recognised
25under section 391(1) and being permitted to act as an insolvency
practitioner in relation only to companies or only to individuals
by or under the rules of that body, or

(b) by virtue of being a member of a professional body recognised
under section 391(2) and being permitted to act as an insolvency
30practitioner by or under the rules of that body.

390B Partial authorisation: acting in relation to partnerships

(1) A person who is partially authorised to act as an insolvency
practitioner in relation to companies may nonetheless not accept an
appointment to act in relation to a company if at the time of the
35appointment the person is aware that the company —

(a) is or was a member of a partnership, and

(b) has outstanding liabilities in relation to the partnership.

(2) A person who is partially authorised to act as an insolvency
practitioner in relation to individuals may nonetheless not accept an
40appointment to act in relation to an individual if at the time of the
appointment the person is aware that the individual—

(a) is or was a member of a partnership other than a Scottish
partnership, and

(b) has outstanding liabilities in relation to the partnership.

(3) 45Subject to subsection (9), a person who is partially authorised to act as
an insolvency practitioner in relation to companies may nonetheless
not continue to act in relation to a company if the person becomes
aware that the company—

(a) is or was a member of a partnership, and

(b) has outstanding liabilities in relation to the partnership,

unless the person is granted permission to continue to act by the court.

(4) Subject to subsection (9), a person who is partially authorised to act as
5an insolvency practitioner in relation to individuals may nonetheless
not continue to act in relation to an individual if the person becomes
aware that the individual—

(a) is or was a member of a partnership other than a Scottish
partnership, and

(b) 10has outstanding liabilities in relation to the partnership,

unless the person is granted permission to continue to act by the court.

(5) The court may grant a person permission to continue to act for the
purposes of subsection (3) or (4) if it is satisfied that the person is
competent to do so.

(6) 15A person who is partially authorised and becomes aware as mentioned
in subsection (3) or (4) may alternatively apply to the court for an order
(a “replacement order”) appointing in his or her place a person who is
fully authorised to act as an insolvency practitioner in relation to the
company or (as the case may be) the individual.

(7) 20A person may apply to the court for permission to continue to act or for
a replacement order under—

(a) where acting in relation to a company, this section or, if it
applies, section 168(5B) (member of insolvent partnership:
England and Wales);

(b) 25where acting in relation to an individual, this section or, if it
applies, section 303(2C) (member of insolvent partnership:
England and Wales).

(8) A person who acts as an insolvency practitioner in contravention of any
of subsections (1) to (4) is guilty of an offence under section 389 (acting
30without qualification).

(9) A person does not contravene subsection (3) or (4) by continuing to act
as an insolvency practitioner during the permitted period if, within the
period of 7 business days beginning with the day after the day on which
the person becomes aware as mentioned in the subsection, the person—

(a) 35applies to the court for permission to continue to act, or

(b) applies to the court for a replacement order.

(10) For the purposes of subsection (9)—

• “business day” means any day other than a Saturday, a Sunday,
  Christmas Day, Good Friday or a day which is a bank holiday
  40in any part of Great Britain;

• “permitted period” means the period beginning with the day on
  which the person became aware as mentioned in subsection (3)
  or (4) and ending on the earlier of—

  (a)

  the expiry of the period of 6 weeks beginning with the
  45day on which the person applies to the court as
  mentioned in subsection (9)(a) or (b), and

  (b)

  the day on which the court disposes of the application
  (by granting or refusing it);

Deregulation BillPage 14

• “replacement order” has the meaning given by subsection (6).”

(4) For section 391 (recognised professional bodies) substitute—

“391 Recognised professional bodies

(1) The Secretary of State may by order declare a body which appears to
5the Secretary of State to meet the requirements of subsection (4) to be a
recognised professional body which is capable of providing its
insolvency specialist members with full authorisation or partial
authorisation.

(2) The Secretary of State may by order declare a body which appears to
10the Secretary of State to meet the requirements of subsection (4) to be a
recognised professional body which is capable of providing its
insolvency specialist members with partial authorisation only.

(3) An order under subsection (2) must state whether the partial
authorisation relates to companies or to individuals.

(4) 15The requirements are that the body—

(a) regulates the practice of a profession, and

(b) maintains and enforces rules for securing that its insolvency
specialist members—

(i) are fit and proper persons to act as insolvency
20practitioners, and

(ii) meet acceptable requirements as to education and
practical training and experience.

(5) The Secretary of State may make an order revoking an order under
subsection (1) or (2) in relation to a professional body if it appears to the
25Secretary of State that the body no longer meets the requirements of
subsection (4).

(6) The Secretary of State may make an order revoking an order under
subsection (1) and replacing it with an order under subsection (2) in
relation to a professional body if it appears to the Secretary of State that
30the body is capable of providing its insolvency specialist members with
partial authorisation only.

(7) An order of the Secretary of State under this section has effect from such
date as is specified in the order.

(8) An order revoking an order made under subsection (1) or (2) may make
35provision whereby members of the body in question continue to be
treated as fully or partially authorised to act as insolvency practitioners
(as the case may be) for a specified period after the revocation takes
effect.

(9) In this section—

(a) 40references to members of a recognised professional body are to
persons who, whether members of that body or not, are subject
to its rules in the practice of the profession in question (and the
references in section 390A to members of a recognised
professional body are to be read accordingly);

(b) 45references to insolvency specialist members of a professional
body are to members who are permitted by or under the rules
of the body to act as insolvency practitioners.”

(5) In section 415A of the Insolvency Act 1986 (fees orders (general))—

(a) in subsection (1) (fees for grant or maintenance of recognition of
professional body), in paragraph (b) (power to refuse recognition, or
revoke order of recognition, where fee not paid), after “391(1)” insert
5“or (2)”;

(b) after subsection (1) (fees for grant or maintenance of recognition of
professional body) insert—

“(1A) Fees under subsection (1) may vary according to whether the
body is recognised under section 391(1) (body providing full
10and partial authorisation) or under section 391(2) (body
providing partial authorisation).”

(6) An order under section 391(1) of the Insolvency Act 1986 (recognised
professional bodies) made before the coming into force of this section is,
following the coming into force of this section, to be treated as if it were made
15under section 391(1) as substituted by subsection (4) of this section.

18 Auditors ceasing to hold office

(1) Chapter 4 of Part 16 of the Companies Act 2006 (audit: removal, resignation,
etc of auditors) is amended as follows.

(2) In section 519 (statement by auditor to be deposited with company on ceasing
20to hold office), for subsections (1) to (3) substitute—

“(1) An auditor of a public interest company who is ceasing to hold office
(at any time and for any reason) must send to the company a statement
of the reasons for doing so.

(2) An auditor (“A”) of a non-public interest company who is ceasing to
25hold office must send to the company a statement of the reasons for
doing so unless A satisfies the first or second condition.

(2A) The first condition is that A is ceasing to hold office—

(a) in the case of a private company, at the end of a period for
appointing auditors;

(b) 30in the case of a public company, at the end of an accounts
meeting.

(2B) The second condition is that—

(a) A’s reasons for ceasing to hold office are all exempt reasons (as
to which see section 519A(3)), and

(b) 35there are no matters connected with A’s ceasing to hold office
that A considers need to be brought to the attention of members
or creditors of the company.

(3) A statement under this section must include—

(a) the auditor’s name and address;

(b) 40the number allocated to the auditor on being entered in the
register of auditors kept under section 1239;

(c) the company’s name and registered number.

(3A) Where there are matters connected with an auditor’s ceasing to hold
office that the auditor considers need to be brought to the attention of

members or creditors of the company, the statement under this section
must include details of those matters.

(3B) Where—

(a) an auditor (“A”) of a non-public interest company is required by
5subsection (2) to send a statement, and

(b) A considers that none of the reasons for A’s ceasing to hold
office, and no matters (if any) connected with A’s ceasing to
hold office, need to be brought to the attention of members or
creditors of the company,

10A’s statement under this section must include a statement to that
effect.”

(3) After section 519 insert—

“519A Meaning of “public interest company”, “non-public interest
company” and “exempt reasons”

(1) 15In this Chapter—

• “public interest company” means a company—

  (a)

  any of whose transferable securities are included in the
  official list (within the meaning of Part 6 of the Financial
  Services and Markets Act 2000), or

  (b)

  20any of whose equity share capital is officially listed in an
  EEA state;

• “non-public interest company” means a company that is not a
  public interest company.

(2) For the purposes of the definition of “public interest company”,
25“transferable securities” means anything which is a transferable
security for the purposes of Directive 2004/39/EC of the European
Parliament and of the Council on markets in financial instruments.

(3) In the application of this Chapter to an auditor (“A”) of a company
ceasing to hold office, the following are “exempt reasons”—

(a) 30A is no longer to carry out statutory audit work within the
meaning of Part 42 (see section 1210(1));

(b) the company is, or is to become, exempt from audit under
section 477, 479A or 480, or from the requirements of this Part
under section 482, and intends to include in its balance sheet a
35statement of the type described in section 475(2);

(c) the company is a subsidiary undertaking of a parent
undertaking that is incorporated in the United Kingdom and—

(i) the parent undertaking prepares group accounts, and

(ii) A is being replaced as auditor of the company by the
40auditor who is conducting, or is to conduct, an audit of
the group accounts;

(d) the company is being wound up under Part 4 of the Insolvency
Act 1986 or Part 5 of the Insolvency (Northern Ireland) Order
1989 (S.I. 1989/2405 (N.I. 19)S.I. 1989/2405 (N.I. 19)), whether voluntarily or by the
45court, or a petition under Part 4 of that Act or Part 5 of that
Order for the winding up of the company has been presented
and not finally dealt with or withdrawn.

(4) But the reason described in subsection (3)(c) is only an exempt reason
if the auditor who is conducting, or is to conduct, an audit of the group
accounts is also conducting, or is also to conduct, the audit (if any) of
the accounts of each of the subsidiary undertakings (of the parent
5undertaking) that is incorporated in the United Kingdom and included
in the consolidation.

(5) The Secretary of State may by order amend the definition of “public
interest company” in subsection (1).

(6) An order under subsection (5) is subject to negative resolution
10procedure.”

(4) In section 523 (duty of company to notify appropriate audit authority), for
subsections (1) to (3) substitute—

“(1) This section applies if an auditor is ceasing to hold office—

(a) in the case of a private company, at any time other than at the
15end of a period for appointing auditors;

(b) in the case of a public company, at any time other than at the
end of an accounts meeting.

(1A) But this section does not apply if the company reasonably believes that
the only reasons for the auditor’s ceasing to hold office are exempt
20reasons (as to which see section 519A(3)).

(2) Where this section applies, the company must give notice to the
appropriate audit authority that the auditor is ceasing to hold office.

(2A) The notice is to take the form of a statement by the company of what the
company believes to be the reasons for the auditor’s ceasing to hold
25office and must include the information listed in section 519(3).

This is subject to subsection (2C).

This is subject to subsection (2C).

(2B) Subsection (2C) applies where—

(a) the company receives a statement from the auditor under
30section 519,

(b) the statement is sent at the time required by section 519(4), and

(c) the company agrees with the contents of the statement.

(2C) Where this subsection applies, the notice may instead take the form of
a copy of the statement endorsed by the company to the effect that it
35agrees with the contents of the statement.

(3) A notice under this section must be given within the period of 28 days
beginning with the day on which the auditor ceases to hold office.”

(5) Schedule 5 (auditors ceasing to hold office) makes provision about the
following matters—

(a) 40the notification requirements that apply on an auditor ceasing to hold
office;

(b) the requirements that apply if there is a failure to re-appoint an auditor;

(c) the replacement of references to documents being deposited at a
company’s registered office.

19 Insolvency and company law: miscellaneous

Schedule 6 makes provision about the following matters—

(a) deeds of arrangement;

(b) administration and winding up of companies;

(c) 5disqualification of unfit directors of insolvent companies;

(d) bankruptcy;

(e) insolvency practitioners;

(f) liabilities of administrators etc and preferential debts;

(g) appointment of proxies under company law.

10Use of land

20 Recorded rights of way: additional protection

In the Countryside and Rights of Way Act 2000, after section 55 (bridleway
rights over ways shown as bridleways) insert—

“55A Other protected rights: England

(1) 15A surveying authority in England may not, at any time after the cut-off
date, make a modification to a definitive map and statement under
section 53(2)(b) of the Wildlife and Countryside Act 1981 if—

(a) the modification might affect the exercise of a protected right of
way, and

(b) 20the only basis for the authority considering that the
modification is requisite is the discovery by the authority of
evidence that the right of way did not exist before 1 January
1949.

(2) In subsection (1), “protected right of way” means any right of way over
25land shown in the definitive map and statement on the cut-off date as a
footpath, bridleway, restricted byway or byway open to all traffic.

(3) In this section, “cut-off date” has the meaning given in section 56.”

21 Unrecorded rights of way: protection from extinguishment

In the Countryside and Rights of Way Act 2000, after section 56 (cut-off date for
30extinguishment of certain unrecorded rights of way) insert—

“56A Unrecorded rights of way: protection from extinguishment

(1) The provision that may be made by regulations under section 56(2) by
the Secretary of State includes—

(a) provision enabling a surveying authority to designate, at any
35time during the period of one year beginning with the cut-off
date, public rights of way in their area that were extinguished
immediately after that date, subject to any conditions or
exceptions specified in the regulations;

(b) provision for a designated right of way to cease to be regarded
40as extinguished as from the time of the designation;

(c) provision requiring a surveying authority to determine, within
a period specified in the regulations, whether to make an order
under section 53(2) of the 1981 Act making modifications to a

definitive map and statement to show a designated right of
way;

(d) provision as to the procedure applicable in relation to such a
determination, including provision for an application to be
5made to a magistrates’ court where a surveying authority fails
to make the determination within a period specified in the
regulations;

(e) provision for a designated right of way to be extinguished if a
surveying authority determines not to make an order under
10section 53(2) of the 1981 Act or if such an order is made but is
not confirmed or is quashed, subject to any exceptions specified
in the regulations;

(f) provision requiring a surveying authority to keep such
information as may be specified in the regulations about
15designated rights of way in a separate part of the register
maintained by them under section 53B of the 1981 Act.

(2) The provision that may be made by virtue of subsection (1)(d) includes
provision applying Schedule 14A to the 1981 Act, subject to such
modifications as may be specified in the regulations.

(3) 20Regulations under section 56(2) made by the Secretary of State may also
provide—

(a) that an enactment specified in the regulations which would
otherwise apply in relation to a designated right of way does
not so apply, or so applies with modifications specified in the
25regulations, in relation to times during the designation period
(see subsection (4) below);

(b) where an order under section 53(2) of the 1981 Act making
modifications to a definitive map and statement to show a
designated right of way takes effect, that the modifications are
30to be treated, for the purposes of section 55A, as having taken
effect immediately before the cut-off date.

(4) In subsection (3)(a), “the designation period” means the period
which—

(a) begins when the right of way is designated, and

(b) 35ends when—

(i) an order under section 53(2) of the 1981 Act making
modifications to a definitive map and statement to show
the right of way takes effect, or

(ii) if no such order is made, the right of way is extinguished
40in accordance with the regulations.

(5) In this section—

• “cut-off date” has the meaning given in section 56;

• “enactment” means a provision of an Act or of subordinate
  legislation (within the meaning of the Interpretation Act 1978).”

22 45Conversion of public rights of way to private rights of way

(1) In the Countryside and Rights of Way Act 2000, after section 56A (as inserted