House of Lords portcullis
House of Lords
Session 1999-2000
Publications on the internet
Other Bills before Parliament
Amendments to the Insolvency Bill [H.L.]

Insolvency Bill [H.L.] -
Amendments to be debated in the House of Lords

  


COMMONS AMENDMENTS

 

[The page and line refer to Bill 173 as first printed for the Commons.]

Amendment
No.
 
  
Before Clause 9
 
1     Insert the following new Clause-- 
     ("  .--(1)  Part II of the Insolvency Act 1986 (administration orders) is amended as follows.
 
    (2)  In section 10 (effect of application), after paragraph (a) of subsection (1) 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 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".
    (3)  In section 11 (effect of order), after paragraph (b) of subsection (3) there is inserted--
    (ba) 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 consent of the administrator or the leave of the court and subject (where the court gives leave) to such terms as the court may impose."")
Administration orders.
1986 c. 45.
  
Clause 11
 
2     Page 7, line 12, at beginning insert ("After") 
3     Page 7, line 13, leave out from ("persons)") to end of line 28 and insert ("there is inserted-- 
 Insolvent estates: joint tenancies.     421A.--(1)  This section applies where--
    (a)  an insolvency administration order has been made in respect of the insolvent estate of a deceased person,
    (b)  the petition for the order was presented after the commencement of this section and within the period of five years beginning with the day on which he died, and
    (c)  immediately before his death he was beneficially entitled to an interest in any property as joint tenant.
    (2)  For the purpose of securing that debts and other liabilities to which the estate is subject are met, the court may, on an application by the trustee appointed pursuant to the insolvency administration order, make an order under this section requiring the survivor to pay to the trustee an amount not exceeding the value lost to the estate.
 
    (3)  In determining whether to make an order under this section, and the terms of such an order, the court must have regard to all the circumstances of the case, including the interests of the deceased's creditors and of the survivor; but, unless the circumstances are exceptional, the court must assume that the interests of the deceased's creditors outweigh all other considerations.
 
    (4)  The order may be made on such terms and conditions as the court thinks fit.
 
    (5)  Any sums required to be paid to the trustee in accordance with an order under this section shall be comprised in the estate.
 
    (6)  The modifications of this Act which may be made by an order under section 421 include any modifications which are necessary or expedient in consequence of this section.
 
    (7)  In this section, "survivor" means the person who, immediately before the death, was beneficially entitled as joint tenant with the deceased or, if the person who was so entitled dies after the making of the insolvency administration order, his personal representatives.
 
    (8)  If there is more than one survivor--
    (a)  an order under this section may be made against all or any of them, but
    (b)  no survivor shall be required to pay more than so much of the value lost to the estate as is properly attributable to him.
    (9)  In this section--
    insolvency administration order" has the same meaning as in any order under section 421 having effect for the time being,
    value lost to the estate" means the amount which, if paid to the trustee, would in the court's opinion restore the position to what it would have been if the deceased had been adjudged bankrupt immediately before his death."
 
     (2)  In subsection (1) of section 421, after "apply" there is inserted "in relation".") 
  
Clause 14
 
4     Page 8, line 32, at end insert-- 
     ("(2)  For the purposes of the Financial Services and Markets Act 2000, the functions conferred on the Financial Services Authority by virtue of Schedules 1 and 2 are to be treated as conferred by that Act.
 
    (3)  Section 356 of that Act (Authority's powers to participate in proceedings: company voluntary arrangements) is amended as follows--
    (a)  for subsection (1), there is substituted--
          (1)  Where a voluntary arrangement has effect under Part I of the 1986 Act in respect of a company or insolvent partnership which is an authorised person, the Authority may apply to the court under section 6 or 7 of that Act.",
    (b)  for subsection (2), there is substituted--
          (2)  Where a voluntary arrangement has been approved under Part II of the 1989 Order in respect of a company or insolvent partnership which is an authorised person, the Authority may apply to the court under Article 19 or 20 of that Order.",
    (c)  in subsection (3), for "either" there is substituted "any".")
2000 c. 8.
  
Clause 16
 
5     Page 9, line 1, after ("except") insert ("section 14(3),") 
  
Schedule 1
 
6     Page 10, line 17, after ("is") insert ("or has been") 
7     Page 10, line 37, at end insert-- 
 
    (""money market contract" and "money market charge" have the meanings given by the Financial Markets and Insolvency (Money Market) Regulations 1995 ("the 1995 regulations"),")
S.I. 1995/2049
8     Page 10, line 40, at end insert--
    (""related contract" has the meaning given by the 1995 regulations,")
 
9     Page 10, line 42, at end insert-- 
 
    (""system-charge" has the meaning given by the Financial Markets and Insolvency Regulations 1996,")
S.I. 1996/1469
10     Page 11, line 11, after ("contract") insert (", a money market contract or a related contract") 
11     Page 11, line 12, after ("charge") insert (", a money market charge or a system-charge") 
12     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")
 
13     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")
 
14     Page 18, line 27, at end insert ("a money market contract or a related contract,") 
15     Page 18, line 29, after ("charge") insert (", a money market charge or a system-charge") 
16     Page 18, line 40, after first ("charge") insert (", a money market charge, a system-charge") 
17     Page 21, line 7, after ("date") insert ("(within the period for the time being specified in paragraph 8(3))") 
18     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.")
 
19     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 (16) 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 39(3) (implementation of voluntary arrangment) 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)  Where paragraph 40(2) (challenge of directors' actions) applies, the persons who may apply to the court include the Authority.
 
    (16)  If a person other than the Authority applies to the court under that paragraph, the Authority is entitled to be heard on the application.
 
    (17)  This paragraph does not prejudice any right the Authority has (apart from this paragraph) as a creditor of a regulated company.
 
    (18)  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.")
2000 c. 8.
  
Schedule 2
 
20     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.")
 
21     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.")
 
  
Schedule 3
 
22     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)")
 
23     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"")
 
24     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."")
 
 
House of Lords home page Parliament home page House of Commons home page search page enquiries index

© Parliamentary copyright 2000
Prepared 20 November 2000