S.C.B.
Amendment Paper as at
Tuesday 7th 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.
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'.
Mr Richard Page
26
Schedule 1, page 29, leave out lines 3 to 7.
Mr Richard Page
27
Schedule 1, page 29, line 11, at end insert 'or by the company.'.
Mr Richard Page
28
Schedule 1, page 29, line 18, leave out from 'Part I' to end of line 19.
Mr Austin Mitchell
Mr Alan Simpson
55
Schedule 2, page 31, line 33, at end insert—
'(ab) In subsection (2)(a), after "creditors" there is inserted "and employee representatives".'.
Mr Richard Page
23
Schedule 2, page 32, line 9, at end insert 'but may only apply within 7 days of the decision taken by creditors'.
Dr Kim Howells
44
Schedule 2, page 32, line 9, at end insert—
'( ) An application under subsection (3) 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.'.
Dr Kim Howells
45
Schedule 2, page 32, line 9, at end insert—
'( ) Where a member of a regulated company, within the meaning given by paragraph 43A of Schedule A1, applies to the court under subsection (3), the Financial Services Authority is entitled to be heard on the application'.
Mr Austin Mitchell
Mr Alan Simpson
56
Schedule 2, page 33, line 31, at end insert—
'(d) after subsection (4) there is inserted—
"(4A) The supervisor shall owe a duty of care to the employees of the company".'.
Mr Austin Mitchell
Mr Alan Simpson
57
Schedule 2, page 33, line 33, at end insert—
'9A. After section 7 there is inserted—
"7A. Neither the supervisor nor any employee or partner of a company of which he is an employee or partner shall subsequently act as liquidator of the company".'.
Dr Kim Howells
46
Schedule 3, page 36, line 4, after 'court)' insert—
'(a) in subsection (2)(a), after "with," there is inserted—
"(aa) 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 debtor in respect of a failure by the debtor to comply with any term or condition of his tenancy of such premises, except with the leave of the court,"
(b)'.
Dr Kim Howells
47
Schedule 3, page 36, line 13, at end insert—
'. In section 254 (effect of application), in subsection (1)—
(a) after "pending" there is inserted—
"(a) 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 debtor in respect of a failure by the debtor to comply with any term or condition of his tenancy of such premises, except with the leave of the court, and
(b)"
(b) after "may" there is inserted—
"forbid the levying of any distress on the debtor's property or its subsequent sale, or both, and" '.
Mr Richard Page
24
Schedule 3, page 37, line 44, leave out from '(3),' to 'for' in line 46.
Mr Richard Page
25
Schedule 3, page 39 leave out lines 19 to 21.
Dr Kim Howells
48
Schedule 3, page 39, line 21, at end insert—
'. In section 347 (distress, etc.)—
(a) in subsection (1), after "(subject to" there is inserted "sections 252(2)(b) and 254(1) above and",
(b) in subsection (8), at the beginning there is inserted "Subject to sections 252(2)(b) and 254(1) above." '.
Mr Austin Mitchell
Mr Alan Simpson
49
Clause 4, page 2, line 29, leave out subsection (a) and insert—
(a) He is subject to regulation by the Secretary of State who shall provide for independent adjudication of complaints, an ombudsman, and training and qualification requirements.'.
Mr Richard Page
11
Clause 4, page 2, line 29, after second 'a', insert 'professional'.
Mr Richard Page
12
Clause 4, page 2, line 29, leave out 'recognised for the purpose by the Secretary of State' and insert 'within the meaning of section 390 (2) of the Insolvency Act 1986'.
Mr Austin Mitchell
Mr Alan Simpson
50
Clause 4, page 3, line 3, at end insert 'provided it has machinery for independent adjudication on fees and complaints, and an ombudsman'.
Mr Austin Mitchell
Mr Alan Simpson
51
Clause 4, page 3, line 9, at end insert 'and
(c) are required to publish their fees, records of appointments made and companies maintained in being or liquidated, and
(d) are required to accept a duty of care to the company, its directors and employees and a duty to maintain in being rather than liquidate viable companies wherever possible'.
Mr Richard Page
13
Clause 4, page 3, line 9, at end insert—
'(c) are free from financial interests in the companies in which they may act as nominees or supervisors and are subject to displicinary procedurees guaranteeing their independence.'.
Mr Christopher Chope
1
Clause 5, page 3, line 33, at end insert ', and
(c) he shall not act as the principal of any trade or business engaged in providing services to consumers'.
