Commonhold and Leasehold Reform Bill [H.L.] - continued        House of Lords
PART I, COMMONHOLD - continued

back to previous text
 
 
Termination: winding-up by court
Introduction.     47. - (1) Section 48 applies where a petition is presented under section 124 of the Insolvency Act 1986 for the winding up of a commonhold association by the court.
 
      (2) For the purposes of this Part-
 
 
    (a) an "insolvent commonhold association" is one in relation to which a winding-up petition has been presented under section 124 of the Insolvency Act 1986,
 
    (b) a commonhold association is the "successor commonhold association" to an insolvent commonhold association if the land specified for the purpose of section 33(1)(a) is the same for both associations, and
 
    (c) a "winding-up order" is an order under section 125 of the Insolvency Act 1986 for the winding up of a commonhold association.
Succession order.     48. - (1) On hearing a winding-up petition the court may make an order under this section (a "succession order") in relation to the insolvent commonhold association.
 
      (2) A succession order may be made only on the application of-
 
 
    (a) the insolvent commonhold association,
 
    (b) one or more members of the insolvent commonhold association, or
 
    (c) a provisional liquidator for the insolvent commonhold association appointed under section 135 of the Insolvency Act 1986.
      (3) An application under subsection (2) must be accompanied by-
 
 
    (a) prescribed evidence of the formation of a successor commonhold association, and
 
    (b) a certificate given by the directors of the successor commonhold association that its memorandum and articles of association comply with regulations under paragraph 2(1) of Schedule 3.
Assets and liabilities.     49. - (1) Where a succession order is made in relation to an insolvent commonhold association this section applies on the making of a winding-up order in respect of the association.
 
      (2) The successor commonhold association shall be entitled to be registered as the proprietor of the freehold estate in the common parts.
 
      (3) The insolvent commonhold association shall for all purposes cease to be treated as the proprietor of the freehold estate in the common parts.
 
      (4) The succession order-
 
 
    (a) shall make provision as to the treatment of any charge over all or any part of the common parts;
 
    (b) may require the Registrar to take action of a specified kind;
 
    (c) may enable the liquidator to require the Registrar to take action of a specified kind;
 
    (d) may make supplemental or incidental provision.
Transfer of responsibility.     50. - (1) Where a succession order is made in relation to an insolvent commonhold association this section applies on the making of a winding-up order in respect of the association.
 
      (2) The successor commonhold association shall be treated as the commonhold association for the commonhold in respect of any matter which relates to a time after the making of the winding-up order.
 
      (3) On the making of the winding-up order the court may make an order requiring the liquidator to make available to the successor commonhold association specified-
 
 
    (a) records;
 
    (b) copies of records;
 
    (c) information.
      (4) An order under subsection (3) may include terms as to-
 
 
    (a) timing;
 
    (b) payment.
Termination of commonhold.     51. - (1) This section applies where the court-
 
 
    (a) makes a winding-up order in respect of a commonhold association, and
 
    (b) has not made a succession order in respect of the commonhold association.
      (2) The liquidator of a commonhold association shall as soon as possible notify the Registrar of-
 
 
    (a) the fact that this section applies,
 
    (b) any directions given under section 168 of the Insolvency Act 1986 (liquidator: supplementary powers), and
 
    (c) any other matter which in the liquidator's opinion is relevant to the Registrar.
      (3) The Registrar shall take such action as appears to him to be appropriate for the purpose of giving effect to a determination made by the liquidator in the exercise of his functions.
 
 
Termination: miscellaneous
Winding-up without termination application.     52. - (1) This section applies where a commonhold association passes a resolution for voluntary winding up within the meaning of section 84 of the Insolvency Act 1986 and-
 
 
    (a) the period allowed by section 41(2) or 42(3) expires without a termination application being made, or
 
    (b) the period prescribed for the purpose of section 42(2) expires without an application being made under that subsection.
      (2) The liquidator appointed under section 91 of the Insolvency Act 1986 shall as soon as possible notify the Registrar of-
 
 
    (a) the fact that this section applies,
 
    (b) any directions given under section 112 of the Insolvency Act 1986 (liquidator: reference to court), and
 
    (c) any other matter which in the liquidator's opinion is relevant to the Registrar.
      (3) The Registrar shall take such action as appears to him to be appropriate for the purpose of giving effect to a determination made by the liquidator in the exercise of his functions.
 
Termination by court.     53. - (1) This section applies where the court makes an order by virtue of section 6(6)(c) or 39(3)(d) for all the land in relation to which a commonhold association exercises functions to cease to be commonhold land.
 
      (2) The court shall have the powers which it would have if it were making a winding-up order in respect of the commonhold association.
 
      (3) A person appointed as liquidator by virtue of subsection (2) shall have the powers and duties of a liquidator appointed under section 125 of the Insolvency Act 1986 for the purposes of a winding-up order.
 
      (4) But the order of the court may-
 
 
    (a) require the liquidator to exercise his functions in a particular way;
 
    (b) impose additional rights or duties on the liquidator;
 
    (c) modify or remove a right or duty of the liquidator.
Release of reserve fund.     54. Section 38(4) shall cease to have effect in relation to a commonhold association (in respect of debts and liabilities accruing at any time) if-
 
 
    (a) the court makes a winding-up order in respect of the association,
 
    (b) the association passes a voluntary winding up resolution, or
 
    (c) the court makes an order by virtue of section 6(6)(c) or 39(3)(d) for all the land in relation to which the association exercises functions to cease to be commonhold land.
 
previous section contents continue
 
House of Lords home page Houses of Parliament home page House of Commons home page search page enquiries index

© Parliamentary copyright 2000
Prepared 21 December 2000