Financial Services and Markets Bill - continued        House of Lords

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  PART XXIV
  INSOLVENCY
 
Interpretation
Interpretation of this Part.     348. In this Part-
 
 
    "the 1985 Act" means the Bankruptcy (Scotland) Act 1985;
 
    "the 1986 Act" means the Insolvency Act 1986;
 
    "the 1989 Order" means the Insolvency (Northern Ireland) Order 1989;
 
    "body" means a body of persons-
 
      (a) over which the court has jurisdiction under any provision of, or made under, the 1986 Act (or the 1989 Order); but
 
      (b) which is not a building society, a friendly society or an industrial and provident society; and
 
    "court" means-
 
      (a) the court having jurisdiction for the purposes of the 1985 Act or the 1986 Act; or
 
      (b) in Northern Ireland, the High Court.
 
Voluntary arrangements
Authority's powers to participate in proceedings: company voluntary arrangements.     349. - (1) This section applies if a voluntary arrangement has been approved under Part I of the 1986 Act (or Part II of the 1989 Order) in respect of a company or insolvent partnership which is an authorised person.
 
      (2) The Authority may make an application to the court in relation to the company or insolvent partnership under section 6 of the 1986 Act (or Article 19 of the 1989 Order).
 
      (3) If a person other than the Authority makes an application to the court in relation to the company or insolvent partnership under either of those provisions, the Authority is entitled to be heard at any hearing relating to the application.
 
Authority's powers to participate in proceedings: individual voluntary arrangements.     350. - (1) The Authority is entitled to be heard on an application by an individual who is an authorised person under section 253 of the 1986 Act (or Article 227 of the 1989 Order).
 
      (2) Subsections (3) to (6) apply if such an order is made on the application of such a person.
 
      (3) A person appointed for the purpose by the Authority is entitled to attend any meeting of creditors of the debtor summoned under section 257 of the 1986 Act (or Article 231 of the 1989 Order).
 
      (4) Notice of the result of a meeting so summoned is to be given to the Authority by the chairman of the meeting.
 
      (5) The Authority may apply to the court-
 
 
    (a) under section 262 of the 1986 Act (or Article 236 of the 1989 Order); or
 
    (b) under section 263 of the 1986 Act (or Article 237 of the 1989 Order).
      (6) If a person other than the Authority makes an application to the court under any provision mentioned in subsection (5), the Authority is entitled to be heard at any hearing relating to the application.
 
Authority's powers to participate in proceedings: trust deeds for creditors in Scotland.     351. - (1) This section applies where a trust deed has been granted by or on behalf of a debtor who is an authorised person.
 
      (2) The trustee must, as soon as practicable after he becomes aware that the debtor is an authorised person, send to the Authority-
 
 
    (a) in every case, a copy of the trust deed;
 
    (b) where any other document or information is sent to every creditor known to the trustee in pursuance of paragraph 5(1)(c) of Schedule 5 to the 1985 Act, a copy of such document or information.
      (3) Paragraph 7 of that Schedule applies to the Authority as if it were a qualified creditor who has not been sent a copy of the notice as mentioned in paragraph 5(1)(c) of the Schedule.
 
      (4) The Authority must be given the same notice as the creditors of any meeting of creditors held in relation to the trust deed.
 
      (5) A person appointed for the purpose by the Authority is entitled to attend and participate in (but not to vote at) any such meeting of creditors as if the Authority were a creditor under the deed.
 
      (6) This section does not affect any right the Authority has as a creditor of a debtor who is an authorised person.
 
      (7) Expressions used in this section and in the 1985 Act have the same meaning in this section as in that Act.
 
 
Administration orders
Petitions.     352. - (1) The Authority may present 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 insolvent 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) Subsection (3) applies in relation to a petition presented by the Authority by virtue of this section.
 
      (3) If the company or partnership is in default on an obligation to pay a sum due and payable under an agreement, it is to be treated for the purpose of section 8(1)(a) of the 1986 Act (or Article 21(1)(a) of the 1989 Order) as unable to pay its debts.
 
      (4) "Agreement" means an agreement the making or performance of which constitutes or is part of a regulated activity carried on by the company or partnership.
 
      (5) "Company" means-
 
 
    (a) a company to which section 8 of the 1986 Act applies; or
 
    (b) in relation to Northern Ireland, a company to which Article 21 of the 1989 Order applies.
 
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