Financial Services and Markets Bill - continued        House of Lords
PART XXIV, INSOLVENCY - continued
Administration orders - continued

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Administrator's duty to report to Authority.     355. - (1) If-
 
 
    (a) an administration order is in force in relation to a company or partnership by virtue of a petition presented by a person other than the Authority, and
 
    (b) it appears to the administrator that the company or partnership is carrying on, or has carried on, a regulated activity in contravention of the general prohibition,

the administrator must report the matter to the Authority without delay.

      (2) "An administration order" means an administration order under Part II of the 1986 Act (or Part III of the 1989 Order).
 
Authority's powers to participate in proceedings.     356. - (1) This section applies if a person other than the Authority presents a petition to the court under section 9 of the 1986 Act (or Article 22 of the 1989 Order) in relation to a company or partnership which-
 
 
    (a) is, or has been, an authorised person;
 
    (b) is, or has been, an appointed representative; or
 
    (c) is carrying on, or has carried on, a regulated activity in contravention of the general prohibition.
      (2) The Authority is entitled to be heard-
 
 
    (a) at the hearing of the petition; and
 
    (b) at any other hearing of the court in relation to the company or partnership under Part II of the 1986 Act (or Part III of the 1989 Order).
      (3) Any notice or other document required to be sent to a creditor of the company or partnership must also be sent to the Authority.
 
      (4) The Authority may apply to the court under section 27 of the 1986 Act (or Article 39 of the 1989 Order); and on such an application, section 27(1)(a) (or Article 39(1)(a)) has effect with the omission of the words "(including at least himself)".
 
      (5) A person appointed for the purpose by the Authority is entitled-
 
 
    (a) to attend any meeting of creditors of the company or partnership summoned under any enactment;
 
    (b) to attend any meeting of a committee established under section 26 of the 1986 Act (or Article 38 of the 1989 Order); and
 
    (c) to make representations as to any matter for decision at such a meeting.
      (6) If, during the course of the administration of a company, a compromise or arrangement is proposed between the company and its creditors, or any class of them, the Authority may apply to the court under section 425 of the Companies Act 1985 (or Article 418 of the Companies (Northern Ireland) Order 1986).
 
 
Receivership
Authority's powers to participate in proceedings.     357. - (1) This section applies if a receiver has been appointed in relation to a company which-
 
 
    (a) is, or has been, an authorised person;
 
    (b) is, or has been, an appointed representative; or
 
    (c) is carrying on, or has carried on, a regulated activity in contravention of the general prohibition.
      (2) The Authority is entitled to be heard on an application made under section 35 or 63 of the 1986 Act (or Article 45 of the 1989 Order).
 
      (3) The Authority is entitled to make an application under section 41(1)(a) or 69(1)(a) of the 1986 Act (or Article 51(1)(a) of the 1989 Order).
 
      (4) A report under section 48(1) or 67(1) of the 1986 Act (or Article 58(1) of the 1989 Order) must be sent by the person making it to the Authority.
 
      (5) A person appointed for the purpose by the Authority is entitled-
 
 
    (a) to attend any meeting of creditors of the company summoned under any enactment;
 
    (b) to attend any meeting of a committee established under section 49 or 68 of the 1986 Act (or Article 59 of the 1989 Order); and
 
    (c) to make representations as to any matter for decision at such a meeting.
Receiver's duty to report to Authority.     358. If-
 
 
    (a) a receiver has been appointed in relation to a company, and
 
    (b) it appears to the receiver that the company is carrying on, or has carried on, a regulated activity in contravention of the general prohibition,

the receiver must report the matter to the Authority without delay.

 
Voluntary winding up
Authority's powers to participate in proceedings.     359. - (1) This section applies in relation to a company which-
 
 
    (a) is being wound up voluntarily;
 
    (b) is an authorised person; and
 
    (c) is not an insurance company carrying on long-term insurance business.
      (2) The Authority may apply to the court under section 112 of the 1986 Act (or Article 98 of the 1989 Order) in respect of the company.
 
      (3) The Authority is entitled to be heard at any hearing of the court in relation to the voluntary winding up of the company.
 
      (4) Any notice or other document required to be sent to a creditor of the company must also be sent to the Authority.
 
      (5) A person appointed for the purpose by the Authority is entitled-
 
 
    (a) to attend any meeting of creditors of the company summoned under any enactment;
 
    (b) to attend any meeting of a committee established under section 101 of the 1986 Act (or Article 87 of the 1989 Order); and
 
    (c) to make representations as to any matter for decision at such a meeting.
      (6) The voluntary winding up of the company does not bar the right of the Authority to have it wound up by the court.
 
      (7) If, during the course of the winding up of the company, a compromise or arrangement is proposed between the company and its creditors, or any class of them, the Authority may apply to the court under section 425 of the Companies Act 1985 (or Article 418 of the Companies (Northern Ireland) Order 1986).
 
Insurance companies carrying on long-term business.     360. - (1) An insurance company carrying on long-term insurance business may not be wound up voluntarily without the consent of the Authority.
 
      (2) If notice of a general meeting of such a company is given, specifying the intention to propose a resolution for voluntary winding up of the company, a director of the company must notify the Authority as soon as practicable after he becomes aware of it.
 
      (3) A person who fails to comply with subsection (2) is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.
 
      (4) The following provisions do not apply in relation to a winding-up resolution-
 
 
    (a) sections 378(3) and 381A of the Companies Act 1985 ("the 1985 Act"); and
 
    (b) Articles 386(3) and 389A of the Companies (Northern Ireland) Order 1986 ("the 1986 Order").
      (5) A copy of a winding-up resolution forwarded to the registrar of companies in accordance with section 380 of the 1985 Act (or Article 388 of the 1986 Order) must be accompanied by a certificate issued by the Authority stating that it consents to the voluntary winding up of the company.
 
      (6) If subsection (5) is complied with, the voluntary winding up is to be treated as having commenced at the time the resolution was passed.
 
      (7) If subsection (5) is not complied with, the resolution has no effect.
 
      (8) "Winding-up resolution" means a resolution for voluntary winding up of an insurance company carrying on long-term insurance business.
 
 
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