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S.C.B.

Amendment Paper as at
Thursday 2nd November 2000

STANDING COMMITTEE B


INSOLVENCY BILL [LORDS]

NOTE

The Amendments have been arranged in accordance with the Order of the Committee [31st October], as follows:—

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.

    Schedule No. 1 (Moratorium where directors propose voluntary arrangement.)

    30

    Another Amendment (No. 30) proposed, in page 12, line 39, to leave out the words 'has a' and insert the word 'is'.—(Mr Richard Page.)

    Question proposed, That the Amendment be made.

   

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.'.

   

Mr Austin Mitchell
Mr Alan Simpson

63

Schedule     1,     page     19,     line     35,     after 'moratorium', insert—

      '(c) he is no longer independent of the company directors and its creditors; he has been disqualified by the courts; or he has been the subject of an adverse finding by a disciplinary hearing of a recognised supervisory body'.

   

Mr Austin Mitchell
Mr Alan Simpson

70

Schedule     1,     page     20,     line     13,     at end insert—

    '26A.—(1) If any eligible creditor is dissatisfied by any act, omission or decision of the nominee during the moratorium, he may apply to the Secretary of State.

    (2) An application under sub-paragraph (1) may be made during the moratorium or after it has ended.

    (3) On an application under sub-paragraph (1) the Secretary of State may—

      (a) confirm, reverse or modify any act or decision of the nominee,

      (b) give him directions,

      (c) make such other order as he thinks fit, or

      (d) refer the matter to the court.

    (4) An order under sub-paragraph (3) may (among other things) bring the moratorium to an end and make such consequential provision as the Secretary of State thinks fit.

    (5) For the purposes of this paragraph, an eligible creditor is a creditor of a description prescribed by the Secretary of State by regulations.'.

   

Mr Austin Mitchell
Mr Alan Simpson

64

Schedule     1,     page     20,     line     43,     leave out sub-paragraph (1)(b) and insert—

      '(b) on an application by any creditor, any member of the company or any other person affected by the moratorium'.

   

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)'.

   

Mr Austin Mitchell
Mr Alan Simpson

65

Schedule     1,     page     21,     line     10,     leave out 'every creditor of the company of' and insert 'any creditor, director, employee or member of the company, or any other person known to the nominee'.

   

Mr Austin Mitchell
Mr Alan Simpson

66

Schedule     1,     page     21,     line     17,     at end insert—

    '(2A) Proper minutes must be kept of all meetings, and those Minutes must be

      (a) accompanied by a list of all those who attended the meeting;

      (b) available for inspection;

      (c) appended to all reports submitted to the courts; and

(d) filed with the registrar of companies in accordance with paragraph 11(b)'.

   

Mr Austin Mitchell
Mr Alan Simpson

67

Schedule     1,     page     23,     line     17,     at end insert—

    '(5) In making its decisions the committee shall have regard for the interests of creditors, directors, members of the company, or any other person affected by the moratorium'.

   

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 Austin Mitchell
Mr Alan Simpson

69

Schedule     1,     page     27,     line     9,     after 'company', insert 'and/or a nominee'.

   

Mr Austin Mitchell
Mr Alan Simpson

68

Schedule     1,     page     27,     line     16,     after 'company', insert 'and/or a nominee'.

   

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'.

 
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Prepared 2 Nov 2000