Deregulation Bill (HL Bill 95)

(20) In the Tribunals, Courts and Enforcement Act 2007, in Schedule 13, omit
paragraph 21.

(21) In the Finance Act 2008, in section 131(8), in the definition of “deed of
arrangement”, omit “the Deeds of Arrangement Act 1914 (c. 47)Deeds of Arrangement Act 1914 (c. 47) or”.

(22) 5In the Third Parties (Rights against Insurers) Act 2010, omit section 4(1)(a).

3 The repeals and other amendments made by paragraphs 1 and 2 are to have
no effect in relation to a deed of arrangement registered under section 5 of
the Deeds of Arrangement Act 1914 before the date on which paragraph 1 of
this Schedule comes into force if, immediately before that date, the estate of
10the debtor who executed the deed of arrangement has not been finally
wound up.

Part 2 Administration of companies

4 Schedule B1 to the Insolvency Act 1986 (administration of companies) is
15amended in accordance with paragraphs 5 to 7.

Appointment of administrators

5 After paragraph 25 (circumstances in which an administrator of a company
may not be appointed under paragraph 22) and before the italic cross-
heading following paragraph 25 insert—

“25A (1) 20Paragraph 25(a) does not prevent the appointment of an
administrator of a company if the petition for the winding up of
the company was presented after the person proposing to make
the appointment filed the notice of intention to appoint with the
court under paragraph 27.

(2) 25But sub-paragraph (1) does not apply if the petition was presented
under a provision mentioned in paragraph 42(4).”

6 In paragraph 26 (notice by company, or directors of company, of intention to
appoint administrator), in sub-paragraph (2) (requirement to give additional
notice), for “proposes to make an appointment under paragraph 22”
30substitute “gives notice of intention to appoint under sub-paragraph (1)”.

Release of administrator where no distribution to unsecured creditors other than by virtue of
section 176A(2)(a)

7 (1) Paragraph 98 (vacation of office of administrator: discharge from liability) is
amended as follows.

(2) 35In sub-paragraph (2)(b) (when discharge takes effect in case of administrator
appointed under paragraph 14 or 22), after “22” insert “who has not made a
statement under paragraph 52(1)(b)”.

(3) In sub-paragraph (2), after paragraph (b) (but before the “or” following it)
insert—

“(ba) 40in the case of an administrator appointed under paragraph
14 or 22 who has made a statement under paragraph
52(1)(b), at a time decided by the relevant creditors,”.

(4) In sub-paragraph (3)—

(a) for the words before paragraph (a) substitute “For the purposes of
sub-paragraph (2)(ba), the “relevant creditors” of a company are—”;

(b) in paragraph (b), for “give or withhold approval” substitute “decide
5on the time of discharge”.

Part 3 Winding up of companies

8 Part 4 of the Insolvency Act 1986 (winding up of companies registered under
the Companies Acts) is amended in accordance with paragraphs 9 and 10.

10Removal of power of court to order payment into Bank of England of money due to company

9 Omit section 151 (payment into bank of money due to company).

Release of liquidator where winding-up order rescinded

10 In section 174 (release of liquidator of company being wound up by the
court), after subsection (4) insert—

“(4A) 15Where a winding-up order made by the court in England and Wales
is rescinded, the person (whether the official receiver or another
person) who is the liquidator of the company at the time the order is
rescinded has his release with effect from such time as the court may
determine.”

20Part 4 Disqualification of unfit directors of insolvent companies

Application for making of disqualification order: power to require information

11 (1) In section 7 of the Company Directors Disqualification Act 1986
(disqualification order or undertaking; and reporting provisions),
25subsection (4) (power of Secretary of State or official receiver to require
information) is amended as follows.

(2) In the words before paragraph (a), for the words from “the liquidator” to “or
administrative receiver of a company” (in the second place they occur)
substitute “any person”.

(3) 30In paragraph (a), for the words from “any person’s conduct” to the end of
the paragraph substitute “that person’s or another person’s conduct as a
director of a company which has at any time become insolvent (whether
while the person was a director or subsequently), and”.

(4) In paragraph (b), for the words from “relevant to” to the end of the
35paragraph substitute “as are considered by the Secretary of State or (as the
case may be) the official receiver to be relevant to that person’s or another
person’s conduct as such a director”.

Part 5 Bankruptcy

12 Part 9 of the Insolvency Act 1986 (bankruptcy) is amended in accordance
with paragraphs 13 to 16.

5Appointment of insolvency practitioner as interim receiver

13 (1) In section 286(1) (power of court to appoint interim receiver if necessary for
protection of debtor’s property), after “official receiver” insert “or an
insolvency practitioner”.

(2) If sub-paragraph (1) comes into force before the coming into force of the
10repeal of subsection (2) of section 286 by paragraph 17(2) of Schedule 19 to
the Enterprise and Regulatory Reform Act 2013, that subsection is to have
effect (until the repeal comes into force) as if for “, instead of the official
receiver,” there were substituted “, another insolvency practitioner or the
official receiver”.

14 (1) 15Section 370 (power to appoint special manager) is amended as follows.

(2) In subsection (1)(c) (power of court to appoint person to be special manager
of property or business of debtor in whose case an interim receiver has been
appointed under section 286), for “the official receiver has been appointed
interim receiver” substitute “an interim receiver has been appointed”.

(3) 20In subsection (2) (who may apply for the appointment of a special manager),
for “official receiver” (in both places where it occurs) substitute “interim
receiver”.

Statement of affairs

15 (1) Section 288 (statement of affairs) is amended as follows.

(2) 25In subsection (1) (duty of bankrupt to submit statement of affairs), for the
words from “the bankrupt shall submit” to the end of the subsection
substitute “the official receiver may at any time before the discharge of the
bankrupt require the bankrupt to submit to the official receiver a statement
of affairs.”

(3) 30After subsection (2) insert—

“(2A) Where a bankrupt is required under subsection (1) to submit a
statement of affairs to the official receiver, the bankrupt shall do so
(subject to subsection (3)) before the end of the period of 21 days
beginning with the day after that on which the prescribed notice of
35the requirement is given to the bankrupt by the official receiver.”

(4) In subsection (3)(a) (power of official receiver to release bankrupt from duty
under subsection (1)), for “the bankrupt from his duty” substitute “a
bankrupt from an obligation imposed on the bankrupt”.

(5) For subsection (3)(b) (power of official receiver to extend period for
40submitting statement of affairs) substitute—

“(b) either when giving the notice mentioned in subsection (2A)
or subsequently, extend the period mentioned in that
subsection,”.

(6) In subsection (4)(a) (offence of failing to comply with obligation to submit
statement of affairs), for “the obligation imposed by” substitute “an
obligation imposed under”.

After-acquired property of bankrupt

16 (1) 5Section 307 (power of trustee in bankruptcy to claim, for the bankrupt’s
estate, property which has been acquired by, or has devolved upon, the
bankrupt after commencement of the bankruptcy) is amended as follows.

(2) In subsection (3) (property to vest in trustee on service of notice on
bankrupt), for “Subject to the next subsection” substitute “Subject to
10subsections (4) and (4A)”.

(3) In subsection (4) (trustee not entitled to remedy against certain persons and
certain bankers)—

(a) in the words before paragraph (a), after “service” insert “on the
bankrupt”;

(b) 15omit paragraph (b) (which makes provision about bankers) and the
“or” at the end of paragraph (a);

(c) in the words after paragraph (b)—

(i) omit “or transaction”;

(ii) omit “or banker” (in both places where they occur).

(4) 20After subsection (4) insert—

“(4A) Where a banker enters into a transaction before service on the banker
of a notice under this section (and whether before or after service on
the bankrupt of a notice under this section) the trustee is not in
respect of that transaction entitled by virtue of this section to any
25remedy against the banker.”

Part 6 Authorisation of insolvency practitioners

17 Part 13 of the Insolvency Act 1986 (insolvency practitioners and their
qualification) is amended in accordance with paragraphs 18, 19 and 21.

30Repeal of provision for authorisation of nominees and supervisors in relation to voluntary
arrangements

18 Omit section 389(1A) (acting without qualification not an offence if
authorised under section 389A).

19 Omit section 389A (authorisation of nominees and supervisors).

20 (1) 35The following repeals are made in consequence of paragraphs 18 and 19.

(2) In the Insolvency Act 1986—

(a) in section 1(2), omit “or authorised to act as nominee,”;

(b) in section 2(4), omit “, or authorised to act as nominee,”;

(c) in section 4(2), omit “or authorised to act as nominee,”;

(d) 40in section 7(5), omit “or authorised to act as supervisor,”;

(e) in Schedule A1—

(i) in paragraph 28(1), omit “, or authorised to act as nominee,”;

(ii) in paragraph 31(2), omit “, or authorised to act as nominee,”;

(iii) in paragraph 33(1), omit “, or authorised to act as nominee,”;

(iv) 5in paragraph 39(6), omit “, or authorised to act as
supervisor,”.

(3) In the Insolvency Act 2000, omit section 4(3) and (4).

(4) In Schedule 6 to the Mental Capacity Act 2005, omit paragraph 31(2).

Repeal of provision for authorisation of insolvency practitioners to be granted by competent
10authority

21 Omit sections 392 to 398 and Schedule 7 (procedure for authorisation by
competent authority, including provision for reference to Insolvency
Practitioners Tribunal).

22 (1) The following repeals are made in consequence of paragraph 21.

(2) 15In the Parliamentary Commissioner Act 1967, in Schedule 4, omit the entry
for the Insolvency Practitioners Tribunal.

(3) In the Northern Ireland Assembly Disqualification Act 1975, in Part 3 of
Schedule 1, omit the entry for any member of the Insolvency Practitioners
Tribunal in receipt of remuneration.

(4) 20In the Companies Act 1985, in Schedule 15D, omit paragraph 37.

(5) In the Insolvency Act 1986—

(a) omit section 415A(2);

(b) in Schedule 10, omit the entry for paragraph 4(3) of Schedule 7.

(6) In the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)S.I. 1989/2405 (N.I. 19)),
25omit Article 349(2)(c) and the “or” before it.

(7) In the Courts and Legal Services Act 1990, in Schedule 10, omit paragraph
67.

(8) In the Tribunals and Inquiries Act 1992—

(a) in Part 1 of Schedule 1, omit the entry for insolvency practitioners;

(b) 30in Schedule 3, omit paragraph 19.

(9) In the Railways Act 1993, omit section 145(2)(b)(ix) (but not the “or”
following it).

(10) In the Greater London Authority Act 1999, omit section 235(2)(c)(ix) (but not
the “or” following it).

(11) 35In the Utilities Act 2000, omit section 105(5)(j).

(12) In the Transport Act 2000, in Schedule 9, omit paragraph 3(2)(l).

(13) In the Enterprise Act 2002, omit section 270(3).

(14) In the Constitutional Reform Act 2005, in Part 3 of Schedule 14, omit the
entry for a member of the Insolvency Practitioners Tribunal panel.

(15) 40In the Companies Act 2006—

(a) in Schedule 2, in Part 2, in Section (A) (United Kingdom), omit
paragraph 18;

(b) in Schedule 11A, omit paragraph 64.

(16) In the Tribunals, Courts and Enforcement Act 2007—

(a) 5in Part 4 of Schedule 6, omit the entry for the Insolvency Practitioners
Tribunal;

(b) in Schedule 10, omit paragraph 19.

(17) In the Civil Aviation Act 2012, in Schedule 6, in paragraph 4(2), omit the
entry for the Insolvency Practitioners Tribunal.

23 (1) 10For the purposes of this paragraph—

• the “commencement date” is the date on which paragraph 21 of this
  Schedule comes into force;

• the “transitional period” is the period of 1 year beginning with the
  commencement date.

(2) 15Where, immediately before the commencement date, a person holds an
authorisation granted under section 393 of the Insolvency Act 1986, section
393(3A) to (6) of that Act together with, for the purposes of this sub-
paragraph, paragraphs (a) and (b) of section 393(2) of that Act (which are
repealed by paragraph 21) continue to have effect in relation to the person
20and the authorisation during the transitional period.

(3) During the transitional period, a person to whom sub-paragraph (2) applies
is to be treated for the purposes of Part 13 of the Insolvency Act 1986 as fully
authorised under section 390A of that Act (as inserted by section 17(3) of this
Act) to act as an insolvency practitioner unless and until the person’s
25authorisation is (by virtue of sub-paragraph (2)) withdrawn.

(4) Where, immediately before the commencement date, a person has applied
under section 392 of the Insolvency Act 1986 for authorisation to act as an
insolvency practitioner and the application has not been granted, refused or
withdrawn, sections 392(4) to (7) and 393(1) and (2) of that Act (which are
30repealed by paragraph 21) continue to have effect in relation to the person
and the application during the transitional period.

(5) Where, during the transitional period, an authorisation is (by virtue of sub-
paragraph (4)) granted under section 393 of the Insolvency Act 1986, sub-
paragraphs (2) and (3) above apply as if—

(a) 35the authorisation had been granted immediately before the
commencement date;

(b) in sub-paragraph (2), the reference to section 393(3A) to (6) were a
reference to section 393(4) to (6).

(6) For the purposes of sub-paragraphs (2) and (4), sections 394 to 398 of, and
40Schedule 7 to, the Insolvency Act 1986 (which are repealed by paragraph 21)
continue to have effect during the transitional period.

Part 7 Liabilities of administrators and administrative receivers of companies and
preferential debts of companies and individuals

Treatment of liabilities relating to contracts of employment

24 5The Insolvency Act 1986 is amended in accordance with paragraphs 25 to 28.

25 In section 19 (vacation of office by administrator), as continued in force by
virtue of section 249(1) of the Enterprise Act 2002 (special administration
regimes), omit subsection (10) (what “wages or salary” includes for the
purposes of subsection (9)(a)).

26 10In section 44 (receivership: agency and liability for contracts), omit
subsection (2D) (what “wages or salary” includes for the purposes of
subsection (2C)(a)).

27 In Schedule B1 (administration of companies), in paragraph 99 (vacation of
office by administrator: charges and liabilities), omit sub-paragraph (6)(d)
15(what “wages or salary” includes for the purposes of sub-paragraph (5)(c))
but not the “and” following it.

28 In Schedule 6 (categories of preferential debt), in paragraph 15 (what “wages
or salary” includes for the purposes of determining what is a category 5
preferential debt), omit paragraph (b) and the “and” before it.

20Part 8 Requirements of company law: proxies

Proxies at a poll taken 48 hours or less after it was demanded

29 In section 327(2) of the Companies Act 2006 (which regulates the period of
notice required for the appointment of a proxy), omit paragraph (c).

30 25In section 330(6) of that Act (which regulates the period of notice required
for the termination of a proxy’s authority), omit paragraph (c).

Section 26

SCHEDULE 7 Ascertainment of rights of way

Part 1 30Wildlife and Countryside Act 1981

1 The Wildlife and Countryside Act 1981 is amended as follows.

2 In section 53 (duty to keep definitive map and statement under continuous
review) —

(a) in subsection (3)(c)(i), omit “or is reasonably alleged to subsist”;

(b) 35after subsection (3)(c)(i) insert—

“(ia) in the case of an authority in Wales, that a
right of way which is not shown in the map

and statement is reasonably alleged to subsist
over land in the area to which the map relates,
being such a right of way as is mentioned in
sub-paragraph (i);”.

3 5After that section insert—

“53ZA Modifications arising from administrative errors

(1) The Secretary of State may by regulations provide for Schedules 13A
and 14A to apply with prescribed modifications in relation to the
making of orders under section 53(2) in cases where it appears to a
10surveying authority in England (whether or not on an application
under section 53(5)) that—

(a) it is requisite to make a modification of a definitive map and
statement in consequence of an event mentioned in section
53(3)(c);

(b) 15the need for the modification has arisen because of an
administrative error; and

(c) both the error and the modification needed to correct it are
obvious.

(2) The Secretary of State may by regulations provide for Schedule 14A
20to apply with prescribed modifications in cases where an order
under section 53(2) is made in accordance with regulations under
subsection (1).

(3) Regulations under this section shall be made by statutory instrument
which shall be subject to annulment in pursuance of a resolution of
25either House of Parliament.

(4) At any time when regulations under subsection (1) are in force, a
surveying authority shall, in deciding whether paragraphs (a) to (c)
of that subsection apply in a particular case (and, accordingly,
whether the provision made by the regulations applies in relation to
30the making of an order under section 53(2) in that case), have regard
to any guidance given by the Secretary of State.

(5) In this section, “prescribed” means prescribed by regulations.”

4 In section 53B (register of applications under section 53), after subsection (4)
insert—

“(4A) 35Regulations may provide that subsection (1) does not apply, with
respect to applications under section 53(5) made to an authority in
England, or to any prescribed description of such applications,
unless the authority serve notice under paragraph 2(4)(b) of
Schedule 13A in relation to such an application.

(4B) 40The making of regulations under subsection (4A) does not prevent
an authority including in the register any information that they
would be required to include in it had the regulations not been
made.”

5 After section 54A insert—

“54B Modifications of definitive map and statement by consent: England

(1) This section applies where it appears to a surveying authority in
England (whether or not on an application under section 53(5)) that
5—

(a) it might be requisite to make a modification to a definitive
map and statement in consequence of the occurrence of one
or more events falling within section 53(3)(b) or (c)(i) or (ii);

(b) the basis for the authority’s view that it might be requisite is
10documentary evidence of the existence of a right of way
before 1949; and

(c) in a case where the authority form that view following an
application, the authority have served notice under
paragraph 2(4)(b) of Schedule 13A that they are considering
15the application.

(2) The authority shall ascertain whether every owner of the land to
which the modification relates consents to the making of an order
under section 53(2) or would so consent if the authority made one or
more of the following orders (“special orders”)—

(a) 20a diversion order;

(b) an order altering the width of the path or way;

(c) an order imposing a new limitation or condition affecting the
right of way.

(3) A diversion order is an order which, for the purpose of diverting the
25line of the path or way or part of it—

(a) creates any such new path or way (of the same kind) as
appears to the authority appropriate; and

(b) extinguishes any public right of way over so much of the path
or way as appears to the authority to be appropriate.

(4) 30If every owner consents to the making of an order under section 53(2)
(without the making of a special order), the authority—

(a) may make the order under section 53(2); and

(b) if they do so, shall include in the order a statement that it is
made with the consent of every owner.

(5) 35If an owner would consent to the making of an order under section
53(2) only if one or more special orders are made, and the other
owners (if any) do not object to the making of such an order or
orders, the authority may make the special order or orders in
question and, if they do so, shall—

(a) 40make an order under section 53(2);

(b) include in that order a statement that it is made with the
consent of every owner; and

(c) combine any special orders and the order under section 53(2)
in a single document.

(6) 45Before making a diversion order, the authority must—

(a) be satisfied that the path or way will not be substantially less
convenient to the public in consequence of the diversion; and

(b) have regard to any guidance given by the Secretary of State.

(7) As soon as reasonably practicable after an authority are satisfied that
they have power under subsection (4) or (5) to make an order under
section 53(2), the authority must—

(a) give notice to each owner that they are satisfied that they
5have that power; and

(b) include in the notice an explanation of the effect of subsection
(9) of this section.

(8) An order under section 53(2) which includes a statement that it is
made with the consent of every owner is referred to in this Act as a
10modification consent order.

(9) An authority must determine whether to make a modification
consent order before the end of the period of 12 months beginning
with—

(a) in the case mentioned in subsection (1)(c), the day on which
15the authority served notice under paragraph 2(4)(b) of
Schedule 13A in respect of the application;

(b) in any other case, the day on which notice is given under
subsection (7).

(10) The Secretary of State may by order provide that, in cases or
20circumstances specified in the order, subsection (9) applies as if for
the period of 12 months mentioned in that subsection there were
substituted a longer period specified in the order.

(11) An order under subsection (10) shall be made by statutory
instrument which shall be subject to annulment in pursuance of a
25resolution of either House of Parliament.

54C Modifications of definitive map and statement by consent:
supplemental

(1) An authority may not make a diversion order under section 54B(5)
so as to alter a point of termination of a path or way—

(a) 30if that point is not on a highway; or

(b) (where it is on a highway) otherwise than to another point
which is on the same highway, or a highway connected with
it, and which is substantially as convenient to the public.

(2) An authority may not make such an order so as to alter the line of a
35path or way such that it falls on land owned by a person whose
consent was not sought under section 54B(2), unless that other
person consents to the alteration.

(3) Where a modification consent order takes effect, any path or way, or
any part of a path or way, which is shown in a definitive map and
40statement in consequence of the order or any special order combined
with it under section 54B(5) is maintainable at the public expense
(including so much of a path or way as has been created by the
making of a special order altering the width of an existing path or
way).

(4) 45Where it appears to an authority—

(a) that if a modification consent order were to take effect, a path
or way, or part of a path or way, would be maintainable at the
public expense by virtue of subsection (3); and