The Care and Support (Cross-border Placements) (Business Failure Duties of Scottish Local Authorities) Regulations 2014

• Citation: S.I. 2014/2839
• Sections: 5

Section 1 Citation, commencement and interpretation

(1) These Regulations may be cited as the Care and Support (Cross-border Placements) (Business Failure Duties of Scottish Local Authorities) Regulations 2014.

(2) These Regulations come into force—

(a) immediately after paragraph 1(6) of the Schedule comes fully into force in so far as they relate to a case within paragraph 1(3) (cross-border placements from England to Scotland) of the Schedule;

(b) in so far as they relate to a case within paragraph 2(3) or (4) of the Schedule (cross-border placements from Wales to Scotland)—

(i) on the date that Part 4 of the Social Services and Well-being (Wales) Act 2014 comes fully into force, or

(ii) if later, immediately after paragraph 2(9) of the Schedule comes fully into force ; and

(c) immediately after paragraph 4(5) of the Schedule comes fully into force in so far as they relate to a case within paragraph 4(3) of the Schedule (cross-border placements from Northern Ireland to Scotland).

(3) In these Regulations—

“the 1968 Act ” means the Social Work (Scotland) Act 1968 ;

“the 1985 Act ” means the Bankruptcy (Scotland) Act 1985 ;

“the 1986 Act ” means the Insolvency Act 1986 ;

“the 2010 Act ” means the Public Services Reform (Scotland) Act 2010 ;

“care provider” means a person providing a care service registered under section 59 of the 2010 Act;

“care service” has the meaning given in section 47 of the 2010 Act (care services);

“company” means an entity, other than a partnership, in respect of which a winding up order may be made in accordance with the procedures for winding up set out in the 1986 Act (with or without modification);

“local authority” means a local authority for the purposes of the 1968 Act ;

“partnership” does not include a limited liability partnership (within the meaning of the Limited Liability Partnerships Act 2000 );

“relevant adult” means an adult in respect of whom relevant arrangements have been made; “relevant arrangements” means arrangements for the provision of accommodation within paragraph 1(3), 2(3) or (4) or (as the case may be) 4(3) of the Schedule;

“relevant care provider” means the care provider with whom relevant arrangements have been made;

“the Schedule” means Schedule 1 to the Care Act 2014.

Section 2 Regulations 3 to 5 – application

Regulations 3 to 5 apply to a case within paragraph 1(3), 2(3) or (4) or 4(3) of the Schedule.

Section 3 Temporary duty on local authority in Scotland

(1) In the circumstances specified in paragraph (2)—

(a) the duties on local authorities specified in regulation 5 are to apply in the case of a relevant adult; and

(b) the discharge of any such duties is to continue for so long as the local authority discharging the duty considers necessary.

(2) The circumstances referred to in paragraph (1) are that—

(a) the relevant care provider is unable to continue to provide the care service in respect of which relevant arrangements have been made; and

(b) such inability arises following any of the events specified in regulation 4.

Section 4 Circumstances in which a local authority is required to discharge specified duties

(1) In relation to a care provider which is a company, the events specified for the purposes of regulation 3(2)(b) are—

(a) the nominee in relation to a proposal for a voluntary arrangement under Part 1 of the 1986 Act submits a report to the court under section 2 (procedure where nominee is not the liquidator or administrator) of that Act which states that in the nominee’s opinion meetings of the company and its creditors should be summoned to consider the proposal;

(b) the directors of the company lodge with the court documents and statements in accordance with paragraph 7(1) of Schedule A1 (moratorium where directors propose voluntary arrangement) to the 1986 Act ;

(c) an administrative receiver within the meaning of section 251 of the 1986 Act is appointed in relation to the company;

(d) the company enters administration within the meaning of paragraph 1(2)(b) of Schedule B1 to the 1986 Act ;

(e) a resolution is passed for a voluntary winding up of the company without a declaration of solvency under section 89 of the 1986 Act;

(f) a meeting of creditors is held in relation to the company under section 95 (creditors’ meeting which has the effect of converting a members’ voluntary winding up into a creditors’ voluntary winding up) of the 1986 Act ;

(g) an order for the winding up of the company is made by the court under Part 4 or 5 of the 1986 Act;

(h) an administration order is made by the court in respect of the company by virtue of any enactment which applies Part 2 (administration orders) of the 1986 Act (with or without modification);

(i) a notice from an administrator under paragraph 83(3) of Schedule B1 (moving from administration to creditors’ voluntary liquidation) to the 1986 Act in relation to the company is registered by the registrar of companies in accordance with paragraph 83(4) of that Schedule;

(j) the company moves from administration to winding up pursuant to an order of the court under rule 21.3 (conversion into winding up proceedings or bankruptcy: court order) of the Insolvency (England and Wales) Rules 2016 ;

(k) an administrator or liquidator of the company, being the nominee in relation to a proposal for a voluntary arrangement under Part 1 of the 1986 Act (company voluntary arrangements), summons meetings of the company and of its creditors, to consider the proposal, in accordance with section 3(2) (summoning of meetings) of the 1986 Act.

(2) In relation to a care provider who is an individual, the events specified for the purposes of regulation 3(2)(b) are—

(a) the individual is made bankrupt or sequestration of the individual’s estate has been awarded under section 12 of the 1985 Act ;

(b) the nominee in relation to a proposal for a voluntary arrangement under Part 8 of the 1986 Act submits a report under section 256(1) or 256A(3) of that Act which states that in the nominee’s opinion a meeting of the creditors of the debtor (being the individual) should be summoned to consider the debtor’s proposal;

(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) the individual executes a trust deed for the individual’s creditors or enters into a composition contract.

(3) In relation to a care provider which is a partnership, the events specified for the purposes of regulation 3(2)(b) are—

(a) an order for the winding up of the partnership is made by the court under any provision of the 1986 Act (as applied by an order under section 420 (insolvent partnerships) of that Act );

(b) sequestration is awarded on the estate of the partnership under section 12 of the 1985 Act or the partnership grants a trust deed for its creditors;

(c) the nominee in relation to a proposal for a voluntary arrangement under Part 1 of the 1986 Act (as applied by an order under section 420 of that Act) submits a report to the court under section 2 (procedure where nominee is not the liquidator or administrator) of that Act which states that in the nominee’s opinion meetings of the members of the partnership and the partnership’s creditors should be summoned to consider the proposal;

(d) the members of the partnership lodge with the court documents and statements in accordance with paragraph 7(1) of Schedule A1 (moratorium where directors propose voluntary arrangement) to the 1986 Act (as applied by an order under section 420 of that Act);

(e) the partnership enters administration within the meaning of paragraph 1(2)(b) of Schedule B1 to the 1986 Act (as applied by an order under section 420 of that Act).

(4) In relation to any other care provider, the event specified for the purpose of regulation 3(2)(b) is an award of sequestration of the provider’s estate made under section 12 of the 1985 Act or the Scottish Charitable Incorporated Organisations (Removal from Register and Dissolution) Regulations 2011 .

Section 5 Specified duties

(1) The duties specified for the purposes of regulation 3(1)(a) are the duties under sections 12 and 13A of the 1968 Act (social welfare services and residential accommodation with nursing) in so far as the discharge of the duties would involve meeting the relevant adult’s needs by taking the following steps—

(a) providing or securing the provision of accommodation; or

(b) providing, maintaining and making such arrangements as a local authority considers appropriate and adequate for the provision of suitable accommodation where nursing is provided for persons who are or appear to be in need of such accommodation by reason of infirmity, age, illness or mental disorder, dependency on drugs or alcohol or being substantially handicapped by any deformity or disability.

(2) In paragraph (1), “needs” means, in relation to an adult, the needs of the adult which were being met by the relevant care provider under relevant arrangements immediately before the provider became unable to continue to provide the care service in question as mentioned in regulation 3(2)(a).