Housing and Planning Bill (HL Bill 117)

(ii) paragraph (c) (and the “or” before it) were omitted, and

(c) after that sub-paragraph there were inserted—

“(7) In the case of a claim made otherwise than by the Secretary
of State or the Regulator of Social Housing, the court may
5grant a remedy or relief or make an order under this
paragraph only if it has given the Secretary of State or the
Regulator a reasonable opportunity of making
representations about the claim and the proposed remedy,
relief or order.

(8) 10The court may grant a remedy or relief or make an order
on an application under this paragraph only if it is
satisfied, in relation to the matters that are the subject of
the application, that the housing administrator—

(a) is acting,

(b) 15has acted, or

(c) is proposing to act,

in a way that is inconsistent with the achievement of the
objectives of the housing administration as quickly and as
efficiently as is reasonably practicable.

(9) 20Before the making of an order of the kind mentioned in
sub-paragraph (4)(d)—

(a) the court must notify the housing administrator of
the proposed order and of a period during which
the housing administrator is to have the
25opportunity of taking steps falling within sub-
paragraphs (10) to (12), and

(b) the period notified must have expired without the
taking of such of those steps as the court thinks
should have been taken,

30and that period must be a reasonable period.

(10) In the case of a claim under sub-paragraph (1)(a), the steps
referred to in sub-paragraph (9) are—

(a) ceasing to act in a manner that unfairly harms the
interests to which the claim relates,

(b) 35remedying any harm unfairly caused to those
interests, and

(c) steps for ensuring that there is no repetition of
conduct unfairly causing harm to those interests.

(11) In the case of a claim under sub-paragraph (1)(b), the steps
40referred to in sub-paragraph (9) are steps for ensuring that
the interests to which the claim relates are not unfairly
harmed.

(12) In the case of a claim under sub-paragraph (2), the steps
referred to in sub-paragraph (9) are—

(a) 45ceasing to act in a manner preventing the
achievement of the objectives of the housing
administration as quickly and as efficiently as is
reasonably practicable,

(b) remedying the consequences of the housing
administrator having acted in such a manner, and

(c) steps for ensuring that there is no repetition of
conduct preventing the achievement of the
5objectives of the housing administration as quickly
and as efficiently as is reasonably practicable.””

14 Paragraph 75(2) (misfeasance) is to have effect as if after paragraph (b) there
were inserted—

“(ba) a person appointed as an administrator of the company
10under the provisions of this Act, as they have effect in relation
to administrators other than housing administrators,”.”

15 Paragraph 78 (consent to extension of administrator’s term of office) is to
have effect as if sub-paragraph (2) were omitted.

16 Paragraph 79 (end of administration) is to have effect as if—

(a) 15for sub-paragraphs (1) and (2) there were substituted—

“(1) On an application made by a person mentioned in sub-
paragraph (2), the court may provide for the appointment
of a housing administrator of a company to cease to have
effect from a specified time.

(2) 20An application may be made to the court under this
paragraph—

(a) by the Secretary of State,

(b) with the consent of the Secretary of State, by the
Regulator of Social Housing, or

(c) 25with the consent of the Secretary of State, by the
housing administrator.”, and”

(b) sub-paragraph (3) were omitted.

17 Paragraph 83(3) (notice to registrar when moving to voluntary liquidation)
is to have effect as if after “may” there were inserted “, with the consent of
30the Secretary of State or of the Regulator of Social Housing,”.

18 Paragraph 84 (notice to registrar when moving to dissolution) is to have
effect as if—

(a) in sub-paragraph (1), for “to the registrar of companies” there were
substituted—

“(a) 35to the Secretary of State and the Regulator of Social
Housing, and

(b) if directed to do so by either the Secretary of State
or the Regulator of Social Housing, to the registrar
of companies.”,”

(b) 40sub-paragraph (2) were omitted, and

(c) in sub-paragraphs (3) to (6), for “(1)”, in each place, there were
substituted “(1)(b)”.

19 Paragraph 87(2) (resignation of administrator) is to have effect as if for
paragraphs (a) to (d) there were substituted “by notice in writing to the
45court”.

20 Paragraph 89(2) (administrator ceasing to be qualified) is to have effect as if
for paragraphs (a) to (d) there were substituted “to the court”.

21 Paragraph 90 (filling vacancy in office of administrator) is to have effect as if
for “Paragraphs 91 to 95 apply” there were substituted “Paragraph 91
applies”.

22 Paragraph 91 (vacancies in court appointments) is to have effect as if—

(a) 5for sub-paragraph (1) there were substituted—

“(1) The court may replace the housing administrator on an
application made—

(a) by the Secretary of State,

(b) with the consent of the Secretary of State, by the
10Regulator of Social Housing, or

(c) where more than one person was appointed to act
jointly as the housing administrator, by any of
those persons who remains in office.””

(b) sub-paragraph (2) were omitted.

23 15Paragraph 98 (discharge from liability on vacation of office) is to have effect
as if sub-paragraphs (2)(b) and (ba), (3) and (3A) were omitted.

24 Paragraph 99 (charges and liabilities upon vacation of office by
administrator) is to have effect as if—

(a) in sub-paragraph (4), for the words from the beginning to
20“cessation”, in the first place, there were substituted “A sum falling
within sub-paragraph (4A)”,

(b) after that sub-paragraph there were inserted—

“(4A) A sum falls within this sub-paragraph if it is—

(a) a sum payable in respect of a debt or other liability
25arising out of a contract that was entered into
before cessation by the former housing
administrator or a predecessor,

(b) a sum that must be repaid by the company in
respect of a grant that was made under section 108
30of the Housing and Planning Act 2016 before
cessation,

(c) a sum that must be repaid by the company in
respect of a loan made under that section before
cessation or that must be paid by the company in
35respect of interest payable on such a loan,

(d) a sum payable by the company under section 110 of
that Act in respect of an agreement to indemnify
made before cessation, or

(e) a sum payable by the company under section 112 of
40that Act in respect of a guarantee given before
cessation.”, and”

(c) in sub-paragraph (5), for “(4)” there were substituted “(4A)(a)”.

25 Paragraph 100 (joint and concurrent administrators) is to have effect as if
sub-paragraph (2) were omitted.

26 45Paragraph 101(3) (joint administrators) is to have effect as if after “87 to”
there were inserted “91, 98 and”.

27 Paragraph 103 (appointment of additional administrators) is to have effect
as if—

(a) in sub-paragraph (2) the words from the beginning to “order” were
omitted and for paragraph (a) there were substituted—

“(a) the Secretary of State,

(aa) the Regulator of Social Housing, or”,”

(b) 5after that sub-paragraph there were inserted—

“(2A) The consent of the Secretary of State is required for an
application by the Regulator of Social Housing for the
purposes of sub-paragraph (2).”, and”

(c) sub-paragraphs (3) to (5) were omitted.

28 10Paragraph 106(2) (penalties) is to have effect as if paragraphs (a), (b), (f), (g),
(i) and (l) to (n) were omitted.

29 Paragraph 109 (references to extended periods) is to have effect as if “or 108”
were omitted.

30 Paragraph 111 (interpretation) is to have effect as if—

(a) 15 in sub-paragraph (1), the definitions of “correspondence”, “holder of
a qualifying floating charge”, “the purpose of administration” and
“unable to pay its debts” were omitted,

(b) in that sub-paragraph, at the appropriate places there were
inserted—

• 20“““company” and “court” have the same meaning as in
  Chapter 5 of Part 4 of the Housing and Planning
  Act 2016,”,

• ““housing administration application” means an
  application to the court for a housing
  25administration order under Chapter 5 of Part 4 of
  the Housing and Planning Act 2016;”,

• ““housing administration order” has the same
  meaning as in Chapter 5 of Part 4 of the Housing
  and Planning Act 2016;”,

• 30““objectives”, in relation to a housing administration,
  is to be read in accordance with section 95(4) of the
  Housing and Planning Act 2016;”, and

• ““prescribed” means prescribed by housing
  administration rules within the meaning of
  35Chapter 5 of Part 4 of the Housing and Planning
  Act 2016.”,”

(c) sub-paragraphs (1A) and (1B) were omitted, and

(d) after sub-paragraph (3) there were inserted—

“(4) For the purposes of this Schedule a reference to a housing
40administration order includes a reference to an
appointment under paragraph 91 or 103.””

Part 2 Further modifications of Schedule B1 to Insolvency Act 1986: foreign
companies

Introductory

31 (1) 5This Part of this Schedule applies in the case of a housing administration
order applying to a foreign company.

(2) The provisions of Schedule B1 to the Insolvency Act 1986 mentioned in
paragraph 1 above (as modified by Part 1 of this Schedule) have effect in
relation to the company with the further modifications set out in this Part of
10this Schedule.

(3) The Secretary of State may by regulations amend this Part of this Schedule
so as to add more modifications.

32 In paragraphs 33 to 38—

(a) the provisions of Schedule B1 to the Insolvency Act 1986 that are
15mentioned in paragraph 1 above are referred to as the applicable
provisions, and

(b) references to those provisions, or to provisions comprised in them,
are references to those provisions as modified by Part 1 of this
Schedule.

20Modifications

33 In the case of a foreign company—

(a) paragraphs 42(2), 83 and 84 of Schedule B1 to the Insolvency Act 1986
do not apply,

(b) paragraphs 46(4), 49(4)(a), 54(2)(a), 71(5) and (6), 72(4) and (5) and 86
25of that Schedule apply only if the company is subject to a
requirement imposed by regulations under section 1043 or 1046 of
the Companies Act 2006 (unregistered UK companies or overseas
companies), and

(c) paragraph 61 of that Schedule does not apply.

34 (1) 30The applicable provisions and Schedule 1 to the Insolvency Act 1986 (as
applied by paragraph 60(1) of Schedule B1 to that Act) are to be read by
reference to the limitation imposed on the scope of the housing
administration order in question as a result of section 94(4) above.

(2) Sub-paragraph (1) has effect, in particular, so that—

(a) 35a power conferred, or duty imposed, on the housing administrator
by or under the applicable provisions or Schedule 1 to the Insolvency
Act 1986 is to be read as being conferred or imposed in relation to the
company’s UK affairs, business and property,

(b) references to the company’s affairs, business or property are to be
40read as references to its UK affairs, business and property,

(c) references to goods in the company’s possession are to be read as
references to goods in its possession in the United Kingdom,

(d) references to premises let to the company are to be read as references
to premises let to it in the United Kingdom, and

(e) references to legal process instituted or continued against the
company or its property are to be read as references to such legal
process relating to its UK affairs, business and property.

35 Paragraph 41 of Schedule B1 to the Insolvency Act 1986 (dismissal of
5receivers) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

“(1) Where a housing administration order takes effect in
respect of a company—

(a) a person appointed to perform functions
10equivalent to those of an administrative receiver,
and

(b) if the housing administrator so requires, a person
appointed to perform functions equivalent to those
of a receiver,

15must refrain, during the period specified in sub-paragraph
(1A), from performing those functions in the United
Kingdom or in relation to any of the company’s property
in the United Kingdom.

(1A) That period is—

(a) 20 in the case of a person mentioned in sub-
paragraph (1)(a), the period while the company is
in housing administration, and

(b) in the case of a person mentioned in sub-paragraph
(1)(b), during so much of that period as is after the
25date on which the person is required by the
housing administrator to refrain from performing
functions.”, and”

(b) sub-paragraphs (2) to (4) were omitted.

36 Paragraph 43(6A) of Schedule B1 to the Insolvency Act 1986 (moratorium on
30appointment to receiverships) is to have effect as if for “An administrative
receiver” there were substituted “A person with functions equivalent to
those of an administrative receiver”.

37 Paragraph 44(7) of Schedule B1 to the Insolvency Act 1986 (proceedings to
which interim moratorium does not apply) is to have effect as if for
35paragraph (d) there were substituted—

“(d) the carrying out of functions by a person who (whenever
appointed) has functions equivalent to those of an
administrative receiver of the company.””

38 Paragraph 64 of Schedule B1 to the Insolvency Act 1986 (general powers of
40administrator) is to have effect as if—

(a) in sub-paragraph (1), after “power” there were inserted “in relation
to the affairs or business of the company so far as carried on in the
United Kingdom or to its property in the United Kingdom”, and

(b) in sub-paragraph (2)(b), after “instrument” there were inserted “or
45by the law of the place where the company is incorporated”.

Part 3 Other modifications

General modifications

39 (1) References within sub-paragraph (2) which are contained—

(a) 5in the Insolvency Act 1986 (other than Schedule B1 to that Act), or

(b) in other legislation passed or made before this Act,

include references to whatever corresponds to them for the purposes of this
paragraph.

(2) The references are those (however expressed) which are or include
10references to—

(a) an administrator appointed by an administration order,

(b) an administration order,

(c) an application for an administration order,

(d) a company in administration,

(e) 15entering into administration, and

(f) Schedule B1 to the Insolvency Act 1986 or a provision of that
Schedule.

(3) For the purposes of this paragraph—

(a) a housing administrator of a company corresponds to an
20administrator appointed by an administration order,

(b) a housing administration order in relation to a company corresponds
to an administration order,

(c) an application for a housing administration order in relation to a
company corresponds to an application for an administration order,

(d) 25a company in housing administration corresponds to a company in
administration,

(e) entering into housing administration in relation to a company
corresponds to entering into administration, and

(f) what corresponds to Schedule B1 to the Insolvency Act 1986 or a
30provision of that Schedule is that Schedule or that provision as
applied by Part 1 of this Schedule.

40 (1) Paragraph 39, in its application to section 1(3) of the Insolvency Act 1986,
does not entitle the housing administrator of an unregistered company to
make a proposal under Part 1 of the Insolvency Act 1986 (company
35voluntary arrangements).

(2) Paragraph 39 does not confer any right under section 7(4) of the Insolvency
Act 1986 (implementation of voluntary arrangements) for a supervisor of
voluntary arrangements to apply for a housing administration order in
relation to a company that is a private registered provider.

(3) 40Paragraph 39 does not apply to section 359 of the Financial Services and
Markets Act 2000 (administration order).

Modifications of the Insolvency Act 1986

41 The following provisions of the Insolvency Act 1986 are to have effect in the
case of any housing administration with the following modifications.

42 Section 5 (effect of approval of voluntary arrangements) is to have effect as
if after subsection (4) there were inserted—

“(4A) Where the company is in housing administration, the court must not
make an order or give a direction under subsection (3) unless—

(a) 5the court has given the Secretary of State or the Regulator of
Social Housing a reasonable opportunity of making
representations to it about the proposed order or direction,
and

(b) the order or direction is consistent with the objectives of the
10housing administration.

(4B) In subsection (4A) “in housing administration” and “objectives of the
housing administration” are to be read in accordance with Schedule
B1 to this Act, as applied by Part 1 of Schedule 5 to the Housing and
Planning Act 2016.””

43 15Section 6 (challenge of decisions in relation to voluntary arrangements) is to
have effect as if—

(a) in subsection (2), for “this section” there were substituted
“subsection (1)”,

(b) after that subsection there were inserted—

“(2AA) 20Subject to this section, where a voluntary arrangement in
relation to a company in housing administration is approved
at the meetings summoned under section 3, an application to
the court may be made—

(a) by the Secretary of State, or

(b) 25with the consent of the Secretary of State, by the
Regulator of Social Housing,

on the ground that the voluntary arrangement is not
consistent with the achievement of the objectives of the
housing administration.”,”

(c) 30in subsection (4), after “subsection (1)” there were inserted “or, in the
case of an application under subsection (2AA), as to the ground
mentioned in that subsection”, and

(d) after subsection (7) there were inserted—

“(7A) In this section “in housing administration” and “objectives of
35the housing administration” are to be read in accordance
with Schedule B1 to this Act, as applied by Part 1 of Schedule
5 to the Housing and Planning Act 2016.””

44 In section 129(1A) (commencement of winding up), the reference to
paragraph 13(1)(e) of Schedule B1 is to include section 99(1)(e) of this Act.

40Power to make further modifications

45 (1) The Secretary of State may by regulations amend this Part of this Schedule
so as to add further modifications.

(2) The further modifications that may be made are confined to such
modifications of—

(a) 45the Insolvency Act 1986, or

(b) other legislation passed or made before this Act that relate to
insolvency or make provision by reference to anything that is or may
be done under the Insolvency Act 1986,

as the Secretary of State considers appropriate in relation to any provision
5made by or under this Chapter.

Interpretation of Part 3 of Schedule

46 In this Part of this Schedule—

• “administration order”, “administrator”, “enters administration” and
  “in administration” are to be read in accordance with Schedule B1 to
  10the Insolvency Act 1986 (disregarding Part 1 of this Schedule), and

• “enters housing administration” and “in housing administration” are to
  be read in accordance with Schedule B1 to the Insolvency Act 1986
  (as applied by Part 1 of this Schedule).

Section 114

SCHEDULE 6 15Amendments to housing moratorium and consequential amendments

1 The Housing and Regeneration Act 2008 is amended as follows.

2 Omit section 144 (insolvency: preparatory steps notice).

3 For section 145 substitute—

“145 Moratorium

20A moratorium on the disposal of land by a private registered
provider begins if a notice is given to the regulator under any of the
following provisions of the Housing and Planning Act 2016—

(a) section 103(2)(a) (notice of winding up petition);

(b) section 104(4)(a) (notice of application for permission to pass
25a resolution for voluntary winding up);

(c) section 105(3)(a) (notice of ordinary administration
application);

(d) section 106(4)(a) (notice of appointment of ordinary
administrator);

(e) 30section 107(2)(a) (notice of intention to enforce security).””

4 (1) Section 146 (duration of moratorium) is amended as follows.

(2) For subsections (1) and (2) substitute—

“(1) The moratorium begins when the notice mentioned in section 145 is
given.

(2) 35The moratorium ends when one of the following occurs—

(a) the expiry of the relevant period,

(b) the making of a housing administration order under Chapter
5 of Part 4 of the Housing and Planning Act 2016 in relation
to the registered provider, or

(c) 40the cancellation of the moratorium (see subsection (5)).

(2A) The “relevant period” is—

(a) the period of 28 days beginning with the day on which the
notice mentioned in section 145 is given, plus

(b) any period by which that period is extended under
5subsection (3).””

(3) Omit subsection (6).

(4) For subsection (9) substitute—

“(9) If a notice mentioned in section 145 is given during a moratorium,
that does not—

(a) 10start a new moratorium, or

(b) alter the existing moratorium’s duration.””

5 (1) Section 147 (further moratorium) is amended as follows.

(2) In subsection (1)(b), for “step specified in section 145 is taken” substitute
“notice mentioned in section 145 is given”.

(3) 15In subsection (2), for “step” substitute “notice”.

6 In section 154 (proposals: effect), in subsection (2), after paragraph (a)
insert—

“(aa) in the case of a charitable incorporated organisation, its
charity trustees (as defined by section 177 of the Charities Act
202011),”.”

7 Omit section 162 (consent to company winding up).

8 Omit section 164 (consent to registered society winding up).

9 In section 275 (general interpretation), omit the definition of “working day”.

10 In section 276 (index of defined terms), omit the entry relating to “working
25day”.

Section 117

SCHEDULE 7 Secure tenancies etc: phasing out of tenancies for life

Law of Property Act 1925 (c. 20)Law of Property Act 1925 (c. 20)

1 (1) Section 52 of the Law of Property Act 1925 (conveyances to be by deed,
30unless excepted by subsection (2) of that section) is amended as follows.

(2) In subsection (2), after paragraph (db) insert—

“(dc) secure tenancies of dwellings in England granted on or after
the day on which paragraph 4 of Schedule 7 to the Housing
and Planning Act 2016 comes fully into force, other than old-
35style secure tenancies;”.”

(3) In subsection (3)—

(a) in the definition of “flexible tenancy”, for “107A” substitute “115B”;