75 In section 287(3)(c) (powers of interim receiver), for “summon a general
meeting of” substitute “seek a decision on a matter from”.

76 In section 296(5) (trustee to give notice relating to creditors’ committees), for
paragraphs (a) and (b) substitute “explain the procedure for establishing a
5creditors’ committee under section 301.”

77 (1) Section 298 (trustee’s vacation of office) is amended as follows.

(2) In subsection (1), for “general meeting of the bankrupt’s creditors
summoned” substitute “decision of the bankrupt’s creditors made by a
creditors’ decision procedure instigated”.

(3) 10In subsection (4)—

(a) for “general meeting of the bankrupt’s creditors shall be summoned”
substitute “creditors’ decision procedure may be instigated”;

(b) for “replacing” substitute “removing”;

(c) in paragraph (c)—

(i) 15omit “the meeting is requested by”;

(ii) after “bankrupt’s creditors” insert “so requests,”.

(4) After subsection (4) insert—

“(4A) Where the bankrupt’s creditors decide to remove a trustee, they may
in accordance with the rules appoint another person as trustee in his
20place.

(4B) Where the decision to remove a trustee is made under subsection (4),
the decision does not take effect until the bankrupt’s creditors
appoint another person as trustee in his place.”

(5) In subsection (8), for the words from “a final” to the end substitute “the
25trustee has given notice under section 331(2).”

(6) After subsection (8) insert—

“(8A) A notice under subsection (8)—

(a) must not be given before the end of the period prescribed by
the rules as the period within which the bankrupt’s creditors
30may object to the trustee’s release, and

(b) must state whether any of the bankrupt’s creditors objected
to the trustee’s release.”

78 (1) Section 299 (release of trustee) is amended as follows.

(2) In subsection (1)(a), omit “a general meeting of”.

(3) 35In subsection (3)(a)—

(a) for the words from “case” to “died” substitute “following cases”;

(b) after “hold office” insert “—

(i) the person has been removed from office by a
decision of the bankrupt’s creditors and the
40creditors have not decided against his release,

(ii) the person has died;”.

(4) For subsection (3)(b) substitute—

“(b) in the following cases, such time as the Secretary of State
may, on an application by the person, determine—

(i) the person has been removed from office by a
decision of the bankrupt’s creditors and the creditors
have decided against his release,

(ii) the person has been removed from office by the court
5or by the Secretary of State,

(iii) the person has vacated office under section 298(6);”.

(5) In subsection (3)(d), for paragraphs (i) and (ii) substitute—

if any of the bankrupt’s creditors objected to the
person’s release before the end of the period for so
10objecting prescribed by the rules, such time as the
Secretary of State may, on an application by that
person, determine, and

(ii) otherwise, the time at which the person vacated
office.”

(6) 15After subsection (3) insert—

“(3A) Where the person is removed from office by a decision of the
bankrupt’s creditors, any decision of the bankrupt’s creditors as to
whether the person should have his release must be made by a
creditors’ decision procedure.”

79 (1) 20Section 300 (vacancy in office of trustee) is amended as follows.

(2) For subsection (3) substitute—

“(3) The official receiver may ask the bankrupt’s creditors to appoint a
person as trustee, and must do so if so requested by not less than one
tenth in value of the bankrupt’s creditors.

(3A) 25If the official receiver makes such a request the bankrupt’s creditors
may in accordance with the rules appoint a person as trustee.”

(3) In subsection (4) for the words from “summoned” to “vacancy” substitute
“asked, and is not proposing to ask, the bankrupt’s creditors to appoint a
person as trustee”.

(4) 30In subsection (8) for the words from “holding” to “331” substitute “vacation
of office by the trustee under section 298(8)”.

80 (1) Section 301 (creditors’ committees) is amended as follows.

(2) In subsection (1), for the words from “general” to “otherwise)” substitute
“bankrupt’s creditors”.

(3) 35In subsection (2)—

(a) for “A general meeting of the” substitute “The”;

(b) for “an appointment made by that meeting” substitute “the
appointment”.

81 In section 314(7) (trustee’s power and duty to summon creditors’ meeting)—

(a) 40for “summon a general meeting of” substitute “seek a decision on a
matter from”;

(b) for “summon such a meeting” substitute “seek a decision on a
matter”.

82 In section 330 (final distribution), after subsection (1) insert—

“(1A) A notice under subsection (1)(b) need not be given to opted-out
creditors.”

83 (1) Section 331 (final meeting) is amended as follows.

(2) 5For subsection (2) substitute—

“(2) The trustee must give the bankrupt’s creditors (other than opted-out
creditors) notice that it appears to the trustee that the administration
of the bankrupt’s estate is for practical purposes complete.

(2A) The notice must—

(a) 10be accompanied by a report of the trustee’s administration of
the bankrupt’s estate;

(b) explain the effect of section 299(3)(d) and how the creditors
may object to the trustee’s release.”

(3) Omit subsections (3) and (4).

(4) 15In the heading, for “meeting” substitute “report”.

84 In section 332(2) (bankrupt’s home), for “summon a meeting under section
331” substitute “give notice under section 331(2)”.

85 In section 356(2)(c) (offence of making false statements)—

(a) for “at any meeting of his creditors” substitute “in connection with
20any creditors’ decision procedure or deemed consent procedure”;

(b) for “at such a meeting” substitute “in connection with such a
procedure”.

86 In Schedule 9, after paragraph 12 insert—

“12A Provision about how a bankrupt’s creditors may appoint a person
25as trustee.”

87 In paragraph 13 of Schedule 9 (creditors’ committee)—

(a) after “to the” insert “establishment,”;

(b) for “established under” substitute “provided for by”.

Other provision

88 30Omit section 379A (remote attendance at meetings) and the heading before
it.

Section 133

SCHEDULE 10 Trustees in bankruptcy

Insolvency Act 1986 (c. 45)Insolvency Act 1986 (c. 45)

1 35The Insolvency Act 1986 is amended as provided in paragraphs 2 to 11.

2 In section 286(3) (interim receiver to have powers and duties conferred by
section 287) for “of a receiver and manager under” substitute “given by”.

3 (1) Section 287 (receivership pending appointment of first trustee) is amended
as follows.

(2) For the heading substitute “Powers of interim receiver”.

(3) In subsection (1)—

(a) 5for the words from the beginning to “official receiver” substitute “An
interim receiver appointed under section 286”;

(b) for “bankrupt’s estate” substitute “debtor’s property”.

(4) In subsection (2)—

(a) for “the official” substitute “an interim”;

(b) 10for “bankrupt’s estate” substitute “debtor’s property”;

(c) for “the estate” (in both places) substitute “the property”.

(5) In subsection (3)—

(a) for “The official” substitute “An interim”;

(b) for “of the estate” substitute “of the debtor’s property”;

(c) 15in paragraph (a), for the words from “any” to the end substitute “the
debtor’s property,”;

(d) for paragraph (b), substitute—

“(b) is not required to do anything that involves his
incurring expenditure, except in pursuance of
20directions given by—

(i) the Secretary of State, where the official
receiver is the interim receiver, or

(ii) the court, in any other case,”;

(e) in paragraph (c) for “bankrupt’s” substitute “debtor’s”.

(6) 25In subsection (4)—

(a) for paragraph (a) substitute—

“(a) an interim receiver acting as receiver or manager of
the debtor’s property under this section seizes or
disposes of any property which is not the debtor’s
30property, and”;

(b) in paragraph (b) for “official receiver” substitute “interim receiver”;

(c) for “official receiver is” substitute “interim receiver is”;

(d) for “bankruptcy” substitute “interim receivership”.

(7) Omit subsection (5).

4 35Omit section 291(1) to (3) (bankrupt’s duty to deliver possession of estate to
official receiver).

5 (1) Section 292 (power to make appointments) is amended as follows.

(2) For the heading substitute “Appointment of trustees: general provision”.

(3) For subsection (1) substitute—

“(1) 40This section applies to any appointment of a person (other than the
official receiver) as trustee of a bankrupt’s estate.”

(4) Omit subsection (5).

6 Omit sections 293 to 295 (meeting of creditors to appoint first trustee).

7 In section 296 (appointment of trustee by Secretary of State)—

(a) in subsection (1) omit “(other than section 297(1) below)”;

(b) in subsection (3) omit “or on a reference under section 295”.

8 Omit section 297.

9 (1) 5Section 298 (removal of trustees) is amended as follows.

(2) Omit subsection (2).

(3) In subsection (4)—

(a) for “section 293(3) or 295(4)” substitute “section 291A(1)”;

(b) for “section 297(5)” substitute “section 291A(2)”.

10 10Omit paragraph 10 of Schedule 9 (exercise by official receiver of functions
under section 287).

11 In paragraph 30 of Schedule 9 omit “, of the official receiver while acting as
a receiver or manager under section 287”.

Enterprise and Regulatory Reform Act 2013 (c. 24)2013 (c. 24)

12 15In Schedule 19 to the Enterprise and Regulatory Reform Act 2013, omit
paragraphs 20 to 22.

Section 144

SCHEDULE 11 Single regulator of insolvency practitioners: supplementary provision

Operation of this Schedule

1 (1) 20This Schedule has effect in relation to regulations under section 144
designating a body (referred to in this Schedule as “the Regulations”) as
follows—

(a) paragraphs 2 to 13 have effect where the Regulations establish the
body;

(b) 25paragraphs 6, 7 and 9 to 13 have effect where the Regulations
designate an existing body (see section 144(2)(b));

(c) paragraph 14 also has effect where the Regulations designate an
existing body that is an unincorporated association.

(2) Provision made in the Regulations by virtue of paragraph 6 or 12, where that
30paragraph has effect as mentioned in sub-paragraph (1)(b), may only apply
in relation to—

(a) things done by or in relation to the body in or in connection with the
exercise of functions conferred on it by the Regulations, and

(b) functions of the body which are functions so conferred.

35Name, members and chair

2 (1) The Regulations must prescribe the name by which the body is to be known.

(2) The Regulations must provide that the members of the body must be
appointed by the Secretary of State after such consultation as the Secretary
of State thinks appropriate.

(3) The Regulations must provide that the Secretary of State must appoint one
5of the members as the chair of the body.

(4) The Regulations may include provision about—

(a) the terms on which the members of the body hold and vacate office;

(b) the terms on which the person appointed as the chair holds and
vacates that office.

10Remuneration etc.

3 (1) The Regulations must provide that the body must pay to its chair and
members such remuneration and allowances in respect of expenses properly
incurred by them in the exercise of their functions as the Secretary of State
may determine.

(2) 15The Regulations must provide that, as regards any member (including the
chair) in whose case the Secretary of State so determines, the body must pay
or make provision for the payment of—

(a) such pension, allowance or gratuity to or in respect of that person on
retirement or death as the Secretary of State may determine, or

(b) 20such contributions or other payment towards the provision of such a
pension, allowance or gratuity as the Secretary of State may
determine.

(3) The Regulations must provide that where—

(a) a person ceases to be a member of the body otherwise than on the
25expiry of the term of office, and

(b) it appears to the Secretary of State that there are special
circumstances which make it right for that person to be
compensated,

the body must make a payment to the person by way of compensation of
30such amount as the Secretary of State may determine.

Staff

4 The Regulations must provide that—

(a) the body may appoint such persons to be its employees as the body
considers appropriate, and

(b) 35the employees are to be appointed on such terms and conditions as
the body may determine.

Proceedings

5 (1) The Regulations may make provision about the proceedings of the body.

(2) The Regulations may, in particular—

(a) 40authorise the body to exercise any function by means of committees
consisting wholly or partly of members of the body;

(b) provide that the validity of proceedings of the body, or of any such
committee, is not affected by any vacancy among the members or
any defect in the appointment of a member.

Fees

6 (1) The Regulations may make provision—

(a) about the setting and charging of fees by the body in connection with
the exercise of its functions;

(b) 5for the retention by the body of any such fees payable to it;

(c) about the application by the body of such fees.

(2) The Regulations may, in particular, make provision—

(a) for the body to be able to set such fees as appear to it to be sufficient
to defray the expenses of the body exercising its functions, taking one
10year with another;

(b) for the setting of fees by the body to be subject to the approval of the
Secretary of State.

(3) The expenses referred to in sub-paragraph (2)(a) include any expenses
incurred by the body on such staff, accommodation, services and other
15facilities as appear to it to be necessary or expedient for the proper exercise
of its functions.

Consultation

7 The Regulations may make provision as to the circumstances and manner in
which the body must consult others before exercising any function
20conferred on it by the Regulations.

Training and other services

8 (1) The Regulations may make provision authorising the body to provide
training or other services to any person.

(2) The Regulations may make provision authorising the body—

(a) 25to charge for the provision of any such training or other services, and

(b) to calculate any such charge on the basis that it considers to be the
appropriate commercial basis.

Report and accounts

9 (1) The Regulations must require the body, at least once in each 12 month
30period, to report to the Secretary of State on—

(a) the exercise of the functions conferred on it by the Regulations, and

(b) such other matters as may be prescribed in the Regulations.

(2) The Regulations must require the Secretary of State to lay before Parliament
a copy of each report received under this paragraph.

(3) 35Unless section 394 of the Companies Act 2006 applies to the body (duty on
every company to prepare individual accounts), the Regulations must
provide that the Secretary of State may give directions to the body with
respect to the preparation of its accounts.

(4) Unless the body falls within sub-paragraph (5), the Regulations must
40provide that the Secretary of State may give directions to the body with
respect to the audit of its accounts.

(5) The body falls within this sub-paragraph if it is a company whose
accounts—

(a) are required to be audited in accordance with Part 16 of the
Companies Act 2006 (see section 475 of that Act), or

(b) 5are exempt from the requirements of that Part under section 482 of
that Act (non-profit making companies subject to public sector
audit).

(6) The Regulations may provide that, whether or not section 394 of the
Companies Act 2006 applies to the body, the Secretary of State may direct
10that any provisions of that Act specified in the directions are to apply to the
body with or without modifications.

Funding

10 The Regulations may provide that the Secretary of State may make grants to
the body.

15Financial penalties

11 (1) This paragraph applies where the Regulations include provision enabling
the body to impose a financial penalty on a person who is, or has been,
authorised to act as an insolvency practitioner (see section 144(5)).

(2) The Regulations—

(a) 20must include provision about how the body is to determine the
amount of a penalty, and

(b) may, in particular, prescribe a minimum or maximum amount.

(3) The Regulations must provide that, unless the Secretary of State (with the
consent of the Treasury) otherwise directs, income from penalties imposed
25by the body is to be paid into the Consolidated Fund.

(4) The Regulations may also, in particular—

(a) include provision for a penalty imposed by the body to be enforced
as a debt;

(b) prescribe conditions that must be met before any action to enforce a
30penalty may be taken.

Status etc.

12 The Regulations must provide that—

(a) the body is not to be regarded as acting on behalf of the Crown, and

(b) its members, officers and employees are not to be regarded as Crown
35servants.

Transfer schemes

13 (1) This paragraph applies if the Regulations make provision designating a
body (whether one established by the Regulations or one already in
existence) in place of a body designated by earlier regulations under section
40144; and those bodies are referred to as the “new body” and the “former
body” respectively.

(2) The Regulations may make provision authorising the Secretary of State to
make a scheme (a “transfer scheme”) for the transfer of property, rights and
liabilities from the former body to the new body.

(3) The Regulations may provide that a transfer scheme may include
5provision—

(a) about the transfer of property, rights and liabilities that could not
otherwise be transferred;

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

(4) 10The Regulations may provide that 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
transferred;

(b) 15make provision about the continuing effect of things done by the
former body 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
relation to the former body in respect of anything transferred;

(d) 20make provision for references to the former body in an instrument or
other document in respect of anything transferred to be treated as
references to the new body;

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

(f) if the TUPE regulations do not apply to in relation to the transfer,
25make provision which is the same or similar.

(5) The Regulations must provide that, where the former body is an existing
body, a transfer scheme may only make provision in relation to—

(a) things done by or in relation to the former body in or in connection
with the exercise of functions conferred on it by previous regulations
30under section 144, and

(b) functions of the body which are functions so conferred.

(6) In sub-paragraph (4)(f), “TUPE regulations” means the Transfer of
Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246S.I. 2006/246).

(7) In this paragraph—

(a) 35references to rights and liabilities include rights and liabilities
relating to a contract of employment;

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

Additional provision where body is unincorporated association

14 (1) This paragraph applies where the body is an unincorporated association.

(2) 40The Regulations must provide that any relevant proceedings may be
brought by or against the body in the name of any body corporate whose
constitution provides for the establishment of the body.

(3) In sub-paragraph (2) “relevant proceedings” means proceedings brought in
or in connection with the exercise of any function conferred on the body by
45the Regulations.