S.C.B.
Amendment Paper as at
Tuesday 31st October 2000
STANDING COMMITTEE B
Dr Kim Howells
That, during proceedings on the Insolvency Bill [Lords], the Committee do meet on Tuesdays at half-past Ten o'clock and at half-past Four o'clock and on Thursdays at Five Minutes to Ten o'clock and at half-past Two o'clock.
New Amendments handed in are marked thus *
INSOLVENCY BILL [LORDS]
NOTE
The Amendments have been arranged in accordance with the Order to be proposed by Dr Kim Howells.
Dr Kim Howells
To move, That the Bill be considered in the following order, namely Clause 1; Schedule 1; Clause 2; Schedule 2; Clause 3; Schedule 3; Clauses 4 to 8; Schedule 4; Clauses 9 to 14; Schedule 5; Clauses 15 to 17; new Clauses; new Schedules.
Dr Kim Howells
38
Schedule 1, page 10, line 17, after 'is' insert 'or has been'.
Mr Christopher Chope
9
Schedule 1, page 11, line 1, leave out 'if it meets the requirements of paragraph 3'.
Mr Christopher Chope
10
Schedule 1, page 11, line 16, leave out paragraph 3.
Mr Austin Mitchell
Mr Alan Simpson
53
Schedule 1, page 11, line 23, leave out from 'requirements' to 'and' in line 25 and insert 'below, namely—
(i) turnover of not more than £8.4 million
(ii) balance sheet total of not more than £4.2 million
(iii) no more than 150 employees,'.
Mr Richard Page
29
Schedule 1, page 11, line 50, after 'regulations', insert 'subject to the approval of both Houses of Parliament'.
Mr Christopher Chope
59
*Schedule 1, page 12, leave out lines 6 and 7 and insert—
'(a) such information as is necessary for a nominee to be able to judge if there is a reasonable prospect of drawing up a workable voluntary arrangement which warrants being submitted to creditors.'.
Mr Christopher Chope
60
*Schedule 1, page 12, leave out lines 16 and 17 and insert—
'(a) there is a reasonable prospect of a workable voluntary arrangement being drawn up which warrants being submitted to creditors;'.
Mr Christopher Chope
61
*Schedule 1, page 12, line 24, at end add 'but he shall take steps to assure himself independently of the validity of information submitted by directors in relation to sub-paragraph (2)(b).'.
Mr Richard Page
30
Schedule 1, page 12, line 39, leave out 'has a' and insert 'is'.
Mr Richard Page
31
Schedule 1, page 12, line 40, leave out 'prospect of being approved and implemented'.
Mr Richard Page
14
Schedule 1, page 13, line 12, leave out 'either of those meetings' and insert 'the meeting of creditors'.
Mr Austin Mitchell
Mr Alan Simpson
54
Schedule 1, page 13, line 12, leave out '28' and insert '90'.
Dr Kim Howells
39
Schedule 1, page 13, line 14, after second 'the' insert 'day on which those meetings were to be held (or, if those meetings were summoned to be held on different days, the later of those days), unless it is extended under paragraph 32.
( ) If the nominee fails to summon either meeting within the period required by paragraph 29(1), the moratorium ends at the end of the'.
Mr Richard Page
15
Schedule 1, page 14, leave out line 19.
Dr Kim Howells
40
Schedule 1, page 14, line 19, at end insert—
'( ) no landlord or other person to whom rent is payable may exercise any right of forfeiture by peaceable re-entry in relation to premises let to the company in respect of a failure by the company to comply with any term or condition of its tenancy of such premises, except with the leave of the court and subject to such terms as the court may impose'.
Mr Richard Page
16
Schedule 1, page 14, line 20, leave out 'other'.
Mr Richard Page
17
Schedule 1, page 14, line 28, at end insert—
'(1A) Nothing in sub-paragraph (1) requires the leave of the court for the appointment of an administrative receiver of the company.'.
Mr Richard Page
18
Schedule 1, page 14, line 49, leave out paragraph 13.
Mr Richard Page
19
Schedule 1, page 15, line 23, leave out paragraph 14.
Mr Richard Page
32
Schedule 1, page 15, line 38, at end insert 'but that its Directors remain in control of the company and of its business during the moratorium.'.
Mr Richard Page
20
Schedule 1, page 16, line 31, at end insert—
'(4) A disposal of the company's property to any person other than a person who is connected with the company shall not be avoided only on the ground that sub-paragraph 18(1) was not satisfied.'.
Mr Richard Page
21
Schedule 1, page 16, line 35, leave out sub-paragraph (a).
Mr Richard Page
33
Schedule 1, page 19, line 20, at end insert—
'(5) The nominee shall have the power to apply to the court for directions to enable him to perform his duties under this paragraph.'.
Dr Kim Howells
41
Schedule 1, page 21, line 7, after 'date', insert '(within the period of 28 days beginning with the day on which the moratorium comes into force)'.
Dr Kim Howells
42
Schedule 1, page 23, line 35, leave out from '(3)' to end of line 36 and insert 'shall not be made after the end of the period of 28 days beginning with—
(a) the day on which the decision was taken by the creditors' meeting, or
(b) where the decision of the company meeting was taken on a later day, that day.'.
Mr Richard Page
22
Schedule 1, page 23, line 36, at end insert 'but may only be made within 7 days of the decision taken by the creditors' meeting'.
Mr Richard Page
34
Schedule 1, page 27, line 25, leave out 'to the value of £500 or more'.
Dr Kim Howells
43
Schedule 1, page 28, line 30, at end insert—
'Functions of the Financial Services Authority
43A.—(1) This Schedule has effect in relation to a moratorium for a regulated company with the modifications in sub-paragraphs (2) to (14) below.
(2) Any notice or other document required by virtue of this Schedule to be sent to a creditor of a regulated company must also be sent to the Authority.
(3) The Authority is entitled to be heard on any application to the court for leave under paragraph 20(2) or 20(3) (disposal of charged property, etc.).
(4) Where paragraph 26(1) (challenge of nominee's actions, etc.) applies, the persons who may apply to the court include the Authority.
(5) If a person other than the Authority applies to the court under that paragraph, the Authority is entitled to be heard on the application.
(6) Where paragraph 27(1) (challenge of nominee's actions, etc.) applies, the persons who may apply to the court include the Authority.
(7) If a person other than the Authority applies to the court under that paragraph, the Authority is entitled to be heard on the application.
(8) The persons to be summoned to a creditors' meeting under paragraph 29 include the Authority.
(9) A person appointed for the purpose by the Authority is entitled to attend and participate in (but not to vote at)—
(a) any creditors' meeting summoned under that paragraph,
(b) any meeting of a committee established under paragraph 35 (moratorium committee).
(10) The Authority is entitled to be heard on any application under paragraph 36(3) (effectiveness of decisions).
(11) Where paragraph 38(1) (challenge of decisions) applies, the persons who may apply to the court include the Authority.
(12) If a person other than the Authority applies to the court under that paragraph, the Authority is entitled to be heard on the application.
(13) Where paragraph 40(2) (challenge of directors' actions) applies, the persons who may apply to the court include the Authority.
(14) If a person other than the Authority applies to the court under that paragraph, the Authority is entitled to be heard on the application.
(15) This paragraph does not prejudice any right the Authority has (apart from this paragraph) as a creditor of a regulated company.
(16) In this paragraph—
"the Authority" means the Financial Services Authority, and
"regulated company" means a company which—
(a) is, or has been, an authorised person within the meaning given by section 31 of the Financial Services and Markets Act 2000,
(b) is, or has been, an appointed representative within the meaning given by section 39 of that Act, or
(c) is carrying on, or has carried on, a regulated activity, within the meaning given by section 22 of that Act, in contravention of the general prohibition within the meaning given by section 19 of that Act'.
