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The Insolvency (Miscellaneous Amendments) Regulations 2017

As Enacted Cited authorities 112 Cited in Amendments 46 Related
Vincent
JurisdictionUK Non-devolved
CitationSI 2017/1119
Year2017

2017 No. 1119

InsolvencyCompaniesIndividuals

Partnership

The Insolvency (Miscellaneous Amendments) Regulations 2017

Made 15th November 2017

Laid before Parliament 16th November 2017

Coming into force 8th December 2017

The Secretary of State, being designated for the purposes of section 2(2) of the European Communities Act 1972 in relation to insolvency1in exercise of the powers conferred upon him by that section, and in exercise of the powers conferred by section 109 of the Insolvency Act 19862, sections 14 and 17(3) of the Limited Liability Partnerships Act 20003, section 99 of the Enterprise and Regulatory Reform Act 20134, and section 159(1) of the Small Business, Enterprise and Employment Act 20155, makes the following Regulations (to the extent that they relate to the provisions in Schedules 1, 4 and 5).

The Lord Chancellor, with the concurrence of the Secretary of State and with the concurrence of the Chancellor of the High Court (nominated by the Lord Chief Justice under section 420(4) and 421(5) of the Insolvency Act 1986), in exercise of the powers conferred by sections 420(1) and (2) and 421(1) and (2) of the Insolvency Act 1986, section 99(1) of the Enterprise and Regulatory Reform Act 20136, section 112(1) of the Deregulation Act 20157and section 159(1) of the Small Business, Enterprise and Employment Act 2015, makes the Regulations in Part 1 of Schedule 2 (to the extent that they relate to the provisions in Schedules 2 and 3).

S-1 Citation, commencement and extent

Citation, commencement and extent

1.—(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.

S-2 Amendments

Amendments

2. Schedules 1 to 5 have effect.

David Lidington

Secretary of State

Ministry of Justice

13th November 2017

Geoffrey Vos

Chancellor of the High Court

14th November 2017

Margot James

Minister for Small Business, Consumer and Corporate Responsibility

Department for Business, Energy and Industrial Strategy

15th November 2017

SCHEDULES

SCHEDULE 1

Regulation 2

LIMITED LIABILITY PARTNERSHIPS

1 Application of the Insolvency Act 1986 and the Insolvency (England and Wales) Rules 2016

PART 1

Application of the Insolvency Act 1986 and the Insolvency (England and Wales) Rules 2016

SCH-1.1

1.—(1) The Limited Liability Partnerships Regulations 20018are amended as follows—

(2) In paragraph 3 of Part 2 of Schedule 6 for “Insolvency Rules 1986” substitute “Insolvency (England and Wales) Rules 2016”9.

SCH-1.2

2.—(1) The Insolvency (England and Wales) Rules 2016 (Consequential Amendments and Savings) Rules 201710are amended as follows—

(2) Omit rule 3(b).

SCH-1.3

3.—(1) The Deregulation Act 2015 and Small Business, Enterprise and Employment Act 2015 (Consequential Amendments) (Savings) Regulations 201711are amended as follows—

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

2 Amendments to the Limited Liability Partnerships Regulations 2001, England and Wales

PART 2

Amendments to the Limited Liability Partnerships Regulations 2001, England and Wales

SCH-1.4

4. The Limited Liability Partnerships Regulations 2001 are amended as follows.

SCH-1.5

5. Part 2 of Schedule 2

Omit Part 2 of Schedule 2.

Schedule 3

Schedule 3

SCH-1.6

6. Schedule 3 is amended as follows.

SCH-1.7

7. For the item relating to subsection (2) of section 212substitute—

“Provisions

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

Modifications

subsection (2)

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

Omit paragraph (c).”
SCH-1.8

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

“Provisions

Section 3 (summoning of meetings)

Modifications

subsection (1)

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.”.

subsection (2)

Omit paragraph (a).”
SCH-1.9

9. For the item relating to subsection (1) of section 413substitute—

“Provisions

Section 4 (decisions of meetings)

Modifications

subsection (1)

Omit paragraph (a).”
SCH-1.10

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

“Provisions

Section 4 (decisions of meetings)

Modifications

subsection (1A)

For “The company and its creditors” substitute “The creditors of the limited liability partnership”.

subsection (3)

For “Neither the company nor its creditors” substitute “The creditors of the limited liability partnership may not”.

subsection (4)

For “Neither the company nor its creditors” substitute “The creditors of the limited liability partnership may not”.”
SCH-1.11

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

“Provisions

Section 4 (decisions of meetings)

Modifications

subsection (5)

Omit “the meeting of the company and”.”
SCH-1.12

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

“Provisions

Section 4 (decisions of meetings)

Modifications

new subsection (5A)

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.””
SCH-1.13

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

“Provisions

Section 4 (decisions of meetings)

Modifications

subsection 6

Omit.”
SCH-1.14

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

“Provisions

Section 4 (decisions of meetings)

Modifications

subsection (6A)

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”.”
SCH-1.15

15. For the item relating to subsection (2) of section 4A14substitute—

“Provisions

Section 4A (approval of arrangement)

Modifications

subsection (2)

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).”
SCH-1.16

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

“Provisions

Section 4A (approval of arrangement)

Modifications

subsection (5A)

Omit.”
SCH-1.17

17. For the item relating to subsection (4) of section 515substitute—

“Provisions

Section 5 (effect of approval)

Modifications

subsection (4)

In paragraph (a) for “each of the reports required by section 4(6) and (6A)” substitute “the report required by section 4(6A)”.”
SCH-1.18

18. For the items relating to subsections (1) to (5) of section 616substitute—

“Provisions

Section 6 (challenge of decisions)

Modifications

subsection (1)

In paragraph (b) omit “the meeting of the company, or in relation to”.

subsection (2)

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).”

subsection (3)

In paragraph (a) for “each for the reports required by section 4(6) and (6A)” substitute “the report required by section 4(6A)”.

subsection (4)

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.”

subsection (5)

Omit “or (c)”.”
SCH-1.19

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

“Provisions

Section 6 (challenge of decisions)

Modifications

subsection (7)17

Omit paragraph (a).”
SCH-1.20

20. For the item relating to subsection (2) of section 718substitute—

“Provisions

Section 7 (implementation of proposal)

Modifications

subsection (2)

In paragraph (a) for “company or its creditors (or both)” substitute “creditors of the limited liability partnership”.”
SCH-1.21

21.—(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,...

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