The Insolvency (Miscellaneous Amendments) Regulations 2017

• Citation: S.I. 2017/1119
• Sections: 76

Section 1 Citation, commencement and extent

(1) — These Regulations may be cited as the Insolvency (Miscellaneous Amendments) Regulations 2017 and come into effect on 8th December 2017.

(2) Part 1 of Schedule 1 extends to England and Wales and Scotland only, save for paragraphs 1 and 2 which extend to England and Wales only.

(3) Part 2 of Schedule 1 extends to England and Wales only.

(4) Part 3 of Schedule 1 extends to Scotland only.

(5) Part 4 of Schedule 1 extends to Northern Ireland only.

(6) Schedules 2 to 4 extend to England and Wales only.

(7) Part 5 extends to England and Wales and Scotland only.

Section 2 Amendments

Schedules 1 to 5 have effect.

Section 1

(1) The Limited Liability Partnerships Regulations 2001 are amended as follows—

(2) In paragraph 3 of Part 2 of Schedule 6 for “Insolvency Rules 1986” substitute “Insolvency (England and Wales) Rules 2016” .

Section 2

(1) The Insolvency (England and Wales) Rules 2016 (Consequential Amendments and Savings) Rules 2017 are amended as follows—

(2) Omit rule 3(b).

Section 3

(1) The Deregulation Act 2015 and Small Business, Enterprise and Employment Act 2015 (Consequential Amendments) (Savings) Regulations 2017 are amended as follows—

(2) Omit regulation 4(2)(b).

Section 4

The Limited Liability Partnerships Regulations 2001 are amended as follows.

Section 5 Part 2 of Schedule 2

Omit Part 2 of Schedule 2.

Section 6 Schedule 3

Schedule 3 is amended as follows.

Section 7 Schedule 3

For the item relating to subsection (2) of section 2 substitute—

Provisions

Section 2 (procedure where the nominee is not the liquidator or administrator)

In paragraph (b) omit “a meeting of the company and by”.

Omit paragraph (c).

Section 8 Schedule 3

For the items relating to subsections (1) and (2) of section 3 substitute—

Provisions

Section 3 (summoning of meetings)

For subsection (1) substitute—

(1) Where the nominee under section 1 is not the liquidator or administrator, and it has been reported to the court under section 2(2) that the proposal should be considered by the creditors of the limited liability partnership, the person making the report shall (unless the court otherwise directs) seek a decision from the creditors of the limited liability partnership as to whether they approve the proposal.

Section 9 Schedule 3

For the item relating to subsection (1) of section 4 substitute—

Provisions

Section 4 (decisions of meetings)

Section 10 Schedule 3

After the item relating to subsection (1) of section 4 insert—

Provisions

Section 4 (decisions of meetings)

Section 11 Schedule 3

For the item relating to subsection (5) of section 4 substitute—

Provisions

Section 4 (decisions of meetings)

Section 12 Schedule 3

For the item relating to new subsection (5A) of section 4 substitute—

Provisions

Section 4 (decisions of meetings)

Insert a new subsection (5A) as follows—

(5A) If modifications to the proposal are proposed by creditors, the nominee under section 1(2) must, before the date on which the creditors are to be asked whether to approve the proposed voluntary arrangement, ascertain from the limited liability partnership whether or not it agrees to the proposed modifications; and if at that date the limited liability partnership has failed to respond to a proposed modification, it shall be presumed not to have agreed to it.

Section 13 Schedule 3

For the item relating to subsection (6) of section 4 substitute—

Provisions

Section 4 (decisions of meetings)

Section 14 Schedule 3

After the item relating to subsection (6) of section 4 insert—

Provisions

Section 4 (decisions of meetings)

In paragraph (a) after “creditors’ decision” insert “(including, where modifications to the proposal were proposed, the response of the limited liability partnership)”.

In paragraph (b) after “be prescribed” insert “and to the limited liability partnership”.

Section 15 Schedule 3

For the item relating to subsection (2) of section 4A substitute—

Provisions

Section 4A (approval of arrangement)

In paragraph (a) for “meeting of the company summoned under section 3 and by the company’s creditors pursuant to that section, or”, substitute “the creditors of the limited liability partnership pursuant to section 3”;

Omit paragraph (b).

Section 16 Schedule 3

After the item relating to subsection (5) of section 4A insert—

Provisions

Section 4A (approval of arrangement)

Section 17 Schedule 3

For the item relating to subsection (4) of section 5 substitute—

Provisions

Section 5 (effect of approval)

Section 18 Schedule 3

For the items relating to subsections (1) to (5) of section 6 substitute—

Provisions

Section 6 (challenge of decisions)

In paragraph (a) omit “at the meeting of the company or”.

After paragraph (aa) insert a new paragraph as follows—

(ab) any member of the limited liability partnership; and

Omit the word “and” at the end of paragraph (b).

Omit paragraph (c).”

For subsection (4) substitute the following—

(4) Where on such an application the court is satisfied as to either of the grounds mentioned in subsection (1), it may do either of the following, namely—

(a) revoke or suspend any decision approving the voluntary arrangement which has effect under section 4A or, in a case falling within subsection (1)(b) any decision taken in the relevant qualifying decision procedure which has effect under that section;

(b) direct any person—

(i) to seek a decision from the creditors of the limited liability partnership, using a qualifying decision procedure, as to whether they approve any revised proposal the person who made the original proposal may make; or

(ii) in a case falling within subsection (1)(b) and relating to the relevant qualifying decision procedure, to seek a decision from the creditors of the limited liability partnership, using a qualifying decision procedure, as to whether they approve the original proposal.

Section 19 Schedule 3

After the item relating to subsection (5) of section 6 insert—

Provisions

Section 6 (challenge of decisions)

Section 20 Schedule 3

For the item relating to subsection (2) of section 7 substitute—

Provisions

Section 7 (implementation of proposal)

Section 21 Schedule 3

(1) This paragraph applies to the items which apply where a proposal under section 1 has been made, where the limited liability partnership is in administration, by the administrator or, where the limited liability partnership is being wound up, by the liquidator.

(2) For the item relating to subsection (2) of section 2 substitute—

Provisions

Section 2

(3) For the item relating to subsection (2) of section 3 substitute—

Provisions

Section 3 (summoning of meetings)

Section 22 Schedule 3

Omit the item relating to subsection (1) of section 73 (including the heading).

Section 23 Schedule 3

Omit the items relating to subsections (1) and (6) and new subsection (5A) of section 94 (including the heading).

Section 24 Schedule 3

Omit the item relating to subsection (7) of section 95.

Section 25 Schedule 3

For the item relating to paragraph (a) of section 96 substitute—

Provisions

Section 96 (conversion to creditors’ voluntary winding up)

Section 26 Schedule 3

Omit the item relating to paragraph (b) of section 96.

Section 27 Schedule 3

Omit the items relating to subsections (1) and (2) of section 98 (including the heading).

Section 28 Schedule 3

For the items relating to subsections (1) to (3) of section 99 substitute—

Provisions

Section 99 (directors to lay statement of affairs before creditors)

Section 29 Schedule 3

For the item relating to subsection (1) of section 100 substitute—

Provisions

Section 100 (appointment of liquidator)

For subsection (1) substitute the following—

(1) The members of the limited liability partnership may nominate a person to be liquidator at the meeting at which the resolution for voluntary winding up is passed.

Section 30 Schedule 3

After the item relating to subsection (1) of section 100 insert—

Provisions

Section 100 (appointment of liquidator)

Section 31 Schedule 3

Omit the items relating to subsection (1) of section 106 (including the heading).

Section 32 Schedule 3

Omit the item relating to subsection (2) of section 165.

Section 33 Schedule 3

For the item relating to subsection (5) of section 166 substitute—

Provisions

Section 166 (creditors’ voluntary winding up)

Section 34 Schedule 3

For the items relating to subsections (6) and (7) of section 171 substitute—

Provisions

Section 171 (removal, etc. (voluntary winding up))

Insert a new subsection (8) as follows—

(8) subsections (3) and (4) of section 92 are to apply for the purposes of this section as they apply for the purposes of that section.

Section 35 Schedule 3

For the item relating to subsection (2) of section 173 substitute—

Provisions

Section 173 (release (voluntary winding up))

Section 36 Schedule 3

Omit the item relating to section 194 (including the heading).

Section 37 Modifications to the items relating to Schedule A1 of the Insolvency Act 1986

The following modifications apply to the items relating to Schedule A1 of the Insolvency Act 1986 .

Section 38 Modifications to the items relating to Schedule A1 of the Insolvency Act 1986

For the item relating to sub-paragraph (2) of paragraph 6 substitute—

Provisions

Paragraph 6

For “directors” substitute “designated members of the limited liability partnership”.

In sub-paragraph (c) for “company and by the company’s creditors” substitute “creditors of the limited liability partnership”.

Section 39 Modifications to the items relating to Schedule A1 of the Insolvency Act 1986

For the item relating to sub-paragraph (1) of paragraph 7 substitute—

Provisions

Paragraph 7

For “directors of a company” substitute “designated members of the limited liability partnership”.

In sub-paragraph (e)(iii) for “company and by the company’s creditors” substitute “creditors of the limited liability partnership”.

Section 40 Modifications to the items relating to Schedule A1 of the Insolvency Act 1986

For the items relating to sub-paragraphs (2) to (4) and (6)(c) of paragraph 8 substitute—

Provisions

Paragraph 8

Section 41 Modifications to the items relating to Schedule A1 of the Insolvency Act 1986

For the item relating to sub-paragraph (1) of paragraph 29 substitute—

Provisions

Paragraph 29

Section 42 Modifications to the items relating to Schedule A1 of the Insolvency Act 1986

For the item relating to sub-paragraph (1) of paragraph 30 substitute—

Provisions

Paragraph 30

Omit “the company meeting summoned under paragraph 29 and”.

For “that paragraph” substitute “paragraph 29”.

Section 43 Modifications to the items relating to Schedule A1 of the Insolvency Act 1986

After the item relating to new sub-paragraph (1A) of paragraph 30 (inserted by these Regulations) insert—

Provisions

Paragraph 30

Section 44 Modifications to the items relating to Schedule A1 of the Insolvency Act 1986

Omit the item relating to new sub-paragraph (2A) of paragraph 30.

Section 45 Modifications to the items relating to Schedule A1 of the Insolvency Act 1986

For the item relating to sub-paragraph (3) of paragraph 30 substitute—

Provisions

Paragraph 30

Section 46 Modifications to the items relating to Schedule A1 of the Insolvency Act 1986

For the items relating to sub-paragraphs (1) and (7) of paragraph 31 substitute—

Provisions

Paragraph 31

For sub-paragraph (7) substitute the following—

(7) The designated members of the limited liability partnership may, before the beginning of the relevant period, give notice to the nominee of any modifications of the proposal for which the designated members intend to seek the approval of the creditors.

Section 47 Modifications to the items relating to Schedule A1 of the Insolvency Act 1986

For the item relating to sub-paragraph (2) of paragraph 32 substitute—

Provisions

Paragraph 32

For sub-paragraph (4) substitute—

(4) Where, in accordance with sub-paragraph (3)(b) the nominee informs the creditors of the limited liability partnership, of the expected cost of his intended actions, the creditors by a qualifying decision procedure shall decide whether or not to approve that expected cost.

Section 48 Modifications to the items relating to Schedule A1 of the Insolvency Act 1986

After the items relating to paragraph 32 insert—

Provisions

Paragraph 35

Omit “meeting may resolve, and the”.

Omit “by the meeting or (as the case may be)”.