Insolvent Partnerships Order 1994

Publication Date:January 01, 1994
 
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1994No. 2421

INSOLVENCY

The Insolvent Partnerships Order 1994

13thSeptember1994

16thSeptember1994

1stDecember1994

ARRANGEMENT OF ARTICLES

PART I

GENERAL

1. Citation, commencement and extent

2. Interpretation: definitions

3. Interpretation: expressions appropriate to companies

PART II

VOLUNTARY ARRANGEMENTS

4. Voluntary arrangement of insolvent partnership

5. Voluntary arrangements of members of insolvent partnership

PART III

ADMINISTRATION ORDERS

6. Administration order in relation to insolvent partnership

PART IV

CREDITORS' ETC. WINDING-UP PETITIONS

7. Winding up of insolvent partnership as unregistered company on petition of creditor etc. where no concurrent petition presented against member

8. Winding up of insolvent partnership as unregistered company on creditor's petition where concurrent petitions presented against one or more members

PART V

MEMBERS' PETITIONS

9. Winding up of insolvent partnership as unregistered company on member's petition where no concurrent petition presented against member

10. Winding up of insolvent partnership as unregistered company on member's petition where concurrent petitions presented against all members

11. Insolvency proceedings not involving winding up of insolvent partnership as unregistered company where individual members present joint bankruptcy petition

PART VI

PROVISIONS APPLYING IN INSOLVENCY PROCEEDINGS IN RELATION TO INSOLVENT PARTNERSHIPS

12. Winding up of unregistered company which is member of insolvent partnership being wound up by virtue of this Order

13. Deposit on petitions

14. Supplemental powers of court

15. Meaning of "act as insolvency practitioner"

PART VII

DISQUALIFICATION

16. Application of Company Directors Disqualification Act 1986

PART VIII

MISCELLANEOUS

17. Forms

18. Application of subordinate legislation

19. Supplemental and transitional provisions

20. Revocation

SCHEDULES

Schedule 1 -

Modified provisions of Part I of the Act (company voluntary arrangements) as applied by article 4

Schedule 2 -

Modified provisions of Part II of the Act (administration orders) as applied by article 6

Schedule 3 -

Provisions of the Act which apply with modifications for the purposes of article 7 to winding up of insolvent partnership on petition of creditor etc. where no concurrent petition presented against member

Part I - Modified provisions of Part V of the Act

Part II - Other modified provisions of the Act about winding up by the court

Schedule 4 -

Provisions of the Act which apply with modifications for the purposes of article 8 to winding up of insolvent partnership on creditor's petition where concurrent petitions are presented against one or more members

Part I - Modified provisions of Part V of the Act

Part II - Other modified provisions of the Act about winding up by the court and bankruptcy of individuals

Schedule 5 -

Provisions of the Act which apply with modifications for the purposes of article 9 to winding up of insolvent partnership on member's petition where no concurrent petition presented against member

Schedule 6 -

Provisions of the Act which apply with modifications for the purposes of article 10 to winding up of insolvent partnership on member's petition where concurrent petitions are presented against all the members

Schedule 7 -

Provisions of the Act which apply with modifications for the purposes of article 11 where joint bankruptcy petition presented by individual members without winding up partnership as unregistered company

Schedule 8 -

Modified provisions of Company Directors Disqualification Act 1986 for the purposes of article 16

Schedule 9 -

Forms

Schedule 10 -

Subordinate legislation applied

The Lord Chancellor, in exercise of the powers conferred on him by section 420(1) and (2 of the Insolvency Act 1986( a) and section 21(2) of the Company Directors Disqualification Act 1986( b) and of all other powers enabling him in that behalf, with the concurrence of the Secretary of State, hereby makes the following Order:-

PART I

GENERAL

Citation, commencement and extent

1.-(1) This Order may be cited as the Insolvent Partnerships Order 1994 and shall come into force on 1st December 1994.

(2) This Order-

(a) in the case of insolvency proceedings in relation to companies and partnerships, relates to companies and partnerships which the courts in England and Wales have jurisdiction to wind up; and(b) in the case of insolvency proceedings in relation to individuals, extends to England and Wales only.

(3) In paragraph (2) the term "insolvency proceedings" has the meaning ascribed to it by article 2 below.

Interpretation: definitions

2.-(1) In this Order, except in so far as the context otherwise requires-

"the Act" means the Insolvency Act 1986;

"agricultural charge" has the same meaning as in the Agricultural Credits Act 1928( c);

"agricultural receiver" means a receiver appointed under an agricultural charge;

"corporate member" means an insolvent member which is a company;

"the court", in relation to an insolvent partnership, means the court which has jurisdiction to wind up the partnership;

"individual member" means an insolvent member who is an individual;

"insolvency order" means-

(a) in the case of an insolvent partnership or a corporate member, a winding-up order; and(b) in the case of an individual member, a bankruptcy order;

"insolvency petition" means, in the case of a petition presented to the court-

(a) against a corporate member, a petition for its winding up by the court;

(a) 1986 c.45.

(b) 1986 c.46; the amendments to section 21(2) made by the Companies Act 1989 (c.40) are not relevant for the purposes of this Order.

(c) 1928 c.43.

(b) against an individual member, a petition for a bankruptcy order to be made against that individual,

where the petition is presented in conjunction with a petition for the winding up of the partnership by the court as an unregistered company under the Act;

"insolvency proceedings" means any proceedings under the Act, this Order or the Insolvency Rules 1986( a);

"insolvent member" means a member of an insolvent partnership, against whom an insolvency petition is being or has been presented;

"joint bankruptcy petition" means a petition by virtue of article 11 of this Order;

"joint debt" means a debt of an insolvent partnership in respect of which an order is made by virtue of Part IV or V of this Order;

"joint estate" means the partnership property of an insolvent partnership in respect of which an order is made by virtue of Part IV or V of this Order;

"joint expenses" means expenses incurred in the winding up of an insolvent partnership or in the winding up of the business of an insolvent partnership and the administration of its property;

"limited partner" has the same meaning as in the Limited Partnerships Act 1907( b);

"member" means a member of a partnership and any person who is liable as a partner within the meaning of section 14 of the Partnership Act 1890( c);

"officer", in relation to an insolvent partnership, means-

(a) a member; or(b) a person who has management or control of the partnership business;

"partnership property" has the same meaning as in the Partnership Act 1890;

"postponed debt" means a debt the payment of which is postponed by or under any provision of the Act or of any other enactment;

"responsible insolvency practitioner" means-

(a) in winding up, the liquidator of an insolvent partnership or corporate member; and(b) in bankruptcy, the trustee of the estate of an individual member,

and in either case includes the official receiver when so acting;

"separate debt" means a debt for which a member of a partnership is liable, other than a joint debt;

"separate estate" means the property of an insolvent member against whom an insolvency order has been made;

"separate expenses" means expenses incurred in the winding up of a corporate member, or in the bankruptcy of an individual member; and

"trustee of the partnership"means a person authorised by order made by virtue of article 11 of this Order to wind up the business of an insolvent partnership and to administer its property.

(2) The definitions in paragraph (1), other than the first definition, shall be added to those in section 436 of the Act.

(3) References in provisions of the Act applied by this Order to any provision of the Act so applied shall, unless the context otherwise requires, be construed as references to the provision as so applied.

(4) Where, in any Schedule to this Order, all or any of the provisions of two or more sections of the Act are expressed to be modified by a single paragraph of the Schedule, the modification includes the combination of the provisions of those sections into the one or more sections set out in that paragraph.

(a) S.I. 1986/1925, amended by S.I. 1987/1919, S.I. 1989/397, S.I 1991/495 and S.I. 1993/602.

(b) 1907 c.24.

(c) 1890 c.39.

Interpretation: expressions appropriate to companies

3.-(1) This article applies for the interpretation in relation to insolvent partnership of expressions appropriate to companies in provisions of the Act and of the Company Directors Disqualification Act 1986 applied by this Order, unless the contrary intention appears.

(2) References to companies shall be construed as references to insolvent partnerships and all references to the registrar of companies shall be omitted.

(3) References to shares of a company shall be construed-

(a) in relation to an insolvent partnership with capital, as references to rights to share in that capital; and(b) in relation to an insolvent partnership without capital, as references to interests(i) conferring any right to share in the profits or liability to contribute to the losses of the partnership, or(ii) giving rise to an obligation to contribute to the debts or expenses of the partne ship in the event of a winding up.

(4) Other expressions appropriate to companies shall be construed, in relation to an insolvent partnership, as references to the corresponding persons, officers,...

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