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COMMONS AMENDMENT

12Schedule 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")

Lord McIntosh of Haringey: My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 12. I wish to speak also to Amendment No. 17. The amendments deal with an issue raised by the noble Baroness, Lady Buscombe, in Grand Committee on 15th June, on Report on 11th July and, I regret to say, also at Third Reading on 26th July. The noble Baroness was right to continue. The amendments will ensure that the wishes of the creditors' meeting to extend a moratorium will prevail in a situation where the company fails to hold a meeting. They also make it an express part of the nominee's duty to summon meetings of the company and its creditors to be held within the initial moratorium period. The moratorium will end at the end of that period if he does not. Currently, that period is 28 days but because it may be increased or reduced using the power in paragraph 8(7), the amendment does not specifically refer to the length of the moratorium period. I thank the noble Baroness, Lady Buscombe, for drawing this point to our attention. I urge the House to accept the amendment.

Moved, That the House do agree with the Commons in their Amendment No. 12.--(Lord McIntosh of Haringey.)

Baroness Buscombe: My Lords, I rise to speak to Amendment No. 12. I shall somewhat shorten my speech given that the Minister has been so gracious in saying that I was right to continue pressing the point. As he said, I began making the point in Grand Committee on 15th June. The amendment represents a complete U-turn by the Government. It has the desired

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effect that if the members of the company do not meet, the moratorium can still be extended by the creditors under paragraph 32. The government amendment meets all the criticisms which I made in Grand Committee and which were dismissed at that time. I am grateful for the amendment and I thank the Minister for it.

Lord McIntosh of Haringey: My Lords, I shall let the "U-turn" pass.

On Question, Motion agreed to.

COMMONS AMENDMENTS

13Schedule 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")
14Page 18, line 27, at end insert ("a money market contract or a related contract,")
15Page 18, line 29, after ("charge") insert (", a money market charge or a system-charge")
16Page 18, line 40, after first ("charge") insert (", a money market charge, a system-charge")
17Page 21, line 7, after ("date") insert ("(within the period for the time being specified in paragraph 8(3))")

Lord McIntosh of Haringey: My Lords, I beg to move that the House do agree with the Commons in their Amendments Nos. 13 to 17.

Moved, That the House do agree with the Commons in their Amendments Nos. 13 to 17.--(Lord McIntosh of Haringey.)

On Question, Motion agreed to.

COMMONS AMENDMENT

18Schedule 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.")

Lord McIntosh of Haringey: My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 18. I should like to speak also to Amendment No. 20. It is the turn of the noble Lord, Lord Kingsland. The amendments deal with an issue raised by the noble Lord in Committee. The amendments provide that there should be a time limit on the ability of a member of the company to go to court if particular decisions taken at the creditors' meeting, which take effect under paragraph 36 of Schedule Al or paragraph 5 of Schedule 2, differ from those made by the company meeting. While we believe that the timing of such an application will be largely self-regulating, we consider that there would be an advantage in there being a cut-off point of 28 days beyond which such applications cannot be made. With due deference to the noble Lord, Lord Kingsland, I commend the amendment to the House.

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Moved, That the House do agree with the Commons in their Amendment No. 18.--(Lord McIntosh of Haringey.)

Lord Kingsland: My Lords, it falls to me to have the final gloat. As the noble Lord said, we first proposed a time limit to any application made by a member of a company as long ago as 15th June. After several months of cerebration, the noble Lord has finally come round to our point of view. I am very grateful to him for doing so.

Lord McIntosh of Haringey: My Lords, I shall let that "gloat" go by as well.

On Question, Motion agreed to.

COMMONS AMENDMENTS

19Schedule 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 (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.

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(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.")
20Schedule 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.")
21Page 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.")
22Schedule 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)")
23Page 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"").
24Page 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."")

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Lord McIntosh of Haringey: My Lords, I beg to move that the House do agree with the Commons in their Amendments Nos. 19 to 24.

Moved, That the House do agree with the Commons in their Amendments Nos. 19 to 24--(Lord McIntosh of Haringey.)

On Question, Motion agreed to.


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