Insolvency (Northern Ireland) Order 1989

Publication Date:January 01, 1989
 
FREE EXCERPT

1989No. 2405

NORTHERN IRELAND

The Insolvency (Northern Ireland) Order 1989

19thDecember1989

Article

PART I

INTRODUCTORY

1. Title and commencement.

2. General interpretation.

3. "Act as insolvency practitioner" .

4. "Associate" .

Interpretation for Parts II to VII

5. Interpretation.

6. "Insolvency" and "go into liquidation" .

7. "Connected with a company" .

8. "Member of a company" .

Interpretation for Parts VIII to X

9. Interpretation.

10. "Security" , etc.

11. "Bankrupt's estate" .

Interpretation for this Order and the Companies Order

12. "Receiver or manager" .

13. "Contributory" .

PARTS II TO VII COMPANY INSOLVENCY; COMPANIES WINDING UP

PART II

COMPANY VOLUNTARY ARRANGEMENTS

The proposal

14. Those who may propose an arrangement.

15. Procedure where nominee is not the liquidator or administrator.

16. Summoning of meetings.

Consideration and implementation of proposal

17. Decisions of meetings.

18. Effect of approval.

19. Challenge of decisions.

20. Implementation of proposal.

PART III

ADMINISTRATION ORDERS

Making, etc., of administration order

21. Power of High Court to make order.

22. Application for order.

23. Effect of application.

24. Effect of order.

25. Notification of order.

Administrators

26. Appointment of administrator.

27. General powers.

28. Power to deal with charged property, etc.

29. General duties.

30. Discharge or variation of administration order.

31. Vacation of office.

32. Release of administrator.

Ascertainment and investigation of company's affairs

33. Information to be given by administrator.

34. Statement of affairs to be submitted to administrator.

Administrator's proposals

35. Statement of proposals.

36. Consideration of proposals by creditors' meeting.

37. Approval of substantial revisions.

Miscellaneous

38. Creditors' committee.

39. Protection of interests of creditors and members.

PART IV

RECEIVERSHNP

PART IV

RECEIVERSHNPRECEIVERS AND MANAGERS

General provisions

40. Disqualification of body corporate from acting as receiver.

41. Disqualification of undischarged bankrupt.

42. Power of High Court to appoint official receiver.

Receivers and managers appointed out of court

43. Time from which appointment is effective.

44. Liability for invalid appointment.

45. Application to High Court for directions.

46. Power of High Court to fix remuneration.

47. Liability for contracts, etc.

48. Receivership accounts to be delivered to registrar.

Provisions applicable to every receivership

49. Notification that receiver or manager appointed.

50. Payment of debts out of assets subject to floating charge.

51. Enforcement of duty to make returns.

Administrative receivers: general

52. General powers.

53. Power to dispose of charged property, etc.

54. Agency and liability for contracts.

55. Vacation of office.

Administrative receivers: ascertainment and investigation of company's affairs

56. Information to be given by administrative receiver.

57. Statement of affairs to be submitted.

58. Report by administrative receiver.

59. Committee of creditors.

PART V

WINDING UP OF COMPANIES REGISTERED UNDER THE COMPANIES

ORDERS

CHAPTER I

PRELIMINARY

Modes of winding up

60. Alternative modes of winding up.

Contributories

61. Liability as contributories of present and past members.

62. Directors with unlimited liability.

63. Liability of past directors and shareholders.

64. Limited company formerly unlimited.

65. Unlimited company formerly limited.

66. Nature of contributory's liability.

67. Contributories in case of death of a member.

68. Effect of contributory's bankruptcy.

69. Companies registered under Companies Order, Part XXII, Chapter II.

CHAPTER II

VOLUNTARY WINDING UP (INTRODUCTORY AND GENERAL)

Resolutions for, and commencement of, voluntary winding up

70. Circumstances in which company may be wound up voluntarily.

71. Notice of resolution to wind up voluntarily.

72. Commencement of voluntary winding up.

Consequences of resolution to wind up

73. Effect on business and status of company.

74. Avoidance of share transfers, etc., after winding-up resolution.

Declaration of solvency

75. Statutory declaration of solvency.

76. Distinction between "members'" and "creditors'" voluntary winding up.

CHAPTER III

MEMBERS' VOLUNTARY WINDING UP

77. Appointment of liquidator.

78. Power to fill vacancy in office of liquidator.

79. General company meeting at each year's end.

80. Final meeting prior to dissolution.

81. Effect of company's insolvency.

82. Conversion to creditors' voluntary winding up.

CHAPTER IV

CREDITORS' VOLUNTARY WINDING UP

83. Application of this Chapter.

84. Meeting of creditors.

85. Directors to lay statement of affairs before creditors.

86. Appointment of liquidator.

87. Appointment of liquidation committee.

88. Creditors' meeting where winding up converted under Article 82.

89. Cesser of directors' powers.

90. Vacancy in office of liquidator.

91. Meetings of company and creditors at each year's end.

92. Final meeting prior to dissolution.

CHAPTER V

PROVISIONS APPLYING TO BOTH KINDS OF VOLUNTARY

WINDING UP

93. Distribution of company's property.

94. Appointment or removal of liquidator by the High Court.

95. Notice by liquidator of his appointment.

96. Acceptance of shares, etc., as consideration for sale of company's property.

97. Dissent from arrangement under Article 96.

98. Reference of questions to the High Court.

99. No liquidator appointed or nominated by company.

100. Expenses of voluntary winding up.

101. Saving for certain rights.

CHAPTER VI

WINDING UP BY THE HIGH COURT

Grounds and effect of winding-up petition

102. Circumstances in which company may be wound up by the High Court.

103. Definition of inability to pay debts; the statutory demand.

104. Application for winding up.

105. Powers of High Court on hearing of petition.

106. Power to stay or restrain proceedings against company.

107. Avoidance of property dispositions, etc.

108. Avoidance of sequestration or distress.

Commencement of winding up

109. Commencement of winding up by the High Court.

110. Consequences of winding-up order.

Investigation procedures

111. Company's statement of affairs.

112. Investigation by official receiver.

113. Public examination of officers.

114. Enforcement of Article 113.

Appointment of liquidator

115. Appointment and powers of provisional liquidator.

116. Functions of official receiver in relation to office of liquidator.

117. Appointment by Department.

118. Choice of liquidator at meetings of creditors and contributories.

119. Appointment by the High Court following administration or voluntary arrangement.

Liquidation committees

120. Liquidation committee.

The liquidator's functions

121. General functions in winding up by the High Court.

122. Custody of company's property.

123. Vesting of company property in liquidator.

124. Duty to summon final meeting.

General powers of High Court

125. Power to stay winding up.

126. Settlement of list of contributories and application of assets.

127. Debts due from contributory to company.

128. Power to make calls.

129. Payment into bank of money due to company.

130. Order on contributory to be conclusive evidence.

131. Power to exclude creditors not proving in time.

132. Adjustment of rights of contributories.

133. Inspection of books by creditors, etc.

134. Payment of expenses of winding up.

135. Power to arrest absconding contributory.

136. Powers of High Court to be cumulative.

137. Delegation of powers to liquidator.

CHAPTER VII

LIQUIDATORS

Preliminary

138. Style and title of liquidators.

139. Corrupt inducement affecting appointment.

Liquidator's powers and duties

140. Voluntary winding up.

141. Creditors' voluntary winding up.

142. Winding up by the High Court.

143. Supplementary powers.

144. Enforcement of liquidator's duty to make returns, etc.

Removal: vacation of office

145. Removal, etc. (voluntary winding up).

146. Removal, etc. (winding up by the High Court).

Release of liquidator

147. Release (voluntary winding up).

148. Release (winding up by the High Court).

CHAPTER VIII

PROVISIONS OF GENERAL APPLICATION IN WINDING

UP

Preferential debts

149. Preferential debts (general provision).

150. Preferential charge on goods distrained.

Special managers

151. Power to appoint special manager.

Disclaimer

152. Power to disclaim onerous property.

153. Disclaimer of leaseholds.

154. Land subject to rentcharge.

155. Powers of High Court (general).

156. Powers of High Court (leaseholds).

Miscellaneous matters

157. Rescission of contracts by the High Court.

158. Power to make over assets to employees.

159. Notification that company is in liquidation.

160. Interest on debts.

161. Company's books to be evidence.

162. Information as to pending liquidations.

163. Resolutions passed at adjourned meetings.

164. Meetings to ascertain wishes of creditors or contributories.

165. Affidavits, etc., in United Kingdom and elsewhere.

CHAPTER IX

DISSOLUTION OF COMPANIES AFTER WINDING UP

166. Dissolution (voluntary winding up).

167. Early dissolution.

168. Consequence of notice under Article 167.

169. Dissolution otherwise than under Article 167.

CHAPTER X

MALPRACTICE BEFORE AND DURING LIQUIDATION;

PENALISATION OF COMPANIES AND COMPANY OFFICERS; INVESTIGATIONS

AND PROSECUTIONS

Offences of fraud, deception, etc.

170. Fraud, etc., in anticipation of winding up.

171. Transactions in fraud of creditors.

172. Misconduct in course of winding up.

173. Falsification of company's books.

174. Material omissions from statement relating to company's affairs.

175. False representations to creditors.

Penalisation of directors and officers

176. Summary remedy against delinquent directors, liquidators, etc.

177. Fraudulent trading.

178. Wrongful trading.

179. Proceedings under Articles 177 and 178.

180. Restriction on re-use of company names.

181. Personal liability for debts following contravention of Article 180.

Investigation and prosecution of malpractice

182. Prosecution of delinquent officers and members of company.

183. Obligations arising under...

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