# Banking Act 2009, Section 103: General powers, duties and effect

Extent: E+W+S+N.I.

(1) A bank liquidator may do anything necessary or expedient for the pursuit of the Objectives in section 99.
(2) The following provisions of this section provide for—
(a) general powers and duties of bank liquidators (by application of provisions about liquidators), and
(b) the general process and effects of bank insolvency (by application of provisions about winding up).
(3) The provisions set out in the Table apply in relation to bank insolvency as in relation to winding up, with—
(a) the modifications set out in subsection (4),
(b) any other modification specified in the Table, and
(c) any other necessary modification.
(4) The modifications are that—
(a) a reference to the liquidator is a reference to the bank liquidator,
(b) a reference to winding up is a reference to bank insolvency,
(c) a reference to winding up by the court is a reference to the imposition of bank insolvency by order of the court,
(d) a reference to being wound up under Part IV or V of the Insolvency Act 1986 is a reference to being made the subject of a bank insolvency order,
(e) a reference to the commencement of winding up is a reference to the commencement of bank insolvency,
(f) a reference to going into liquidation is a reference to entering bank insolvency,
(g) a reference to a winding-up order is a reference to a bank insolvency order, and
(h) except where otherwise specified in the Table, a reference to a company is a reference to the bank.
(5) Powers conferred by this Act, by the Insolvency Act 1986 (as applied) and the Companies Acts are in addition to, and not in restriction of, any existing powers of instituting proceedings against a contributory or debtor of a bank, or the estate of any contributory or debtor, for the recovery of any call or other sum.
(6) A reference in an enactment or other document to anything done under a provision applied by this Part includes a reference to the provision as applied.
(7) In the Table “Schedule 9 to the 2015 Act” means Schedule 9 to the Small Business, Enterprise and Employment Act 2015 (further amendments relating to the abolition of requirements to hold meetings: company insolvency).
TABLE OF APPLIED PROVISIONS
Provision of Insolvency Act 1986
Subject
Modification or comment
Section 127
Avoidance of property dispositions
Ignore section 127(2).
Section 128
Avoidance of attachment, &c.
Section 130
Consequences of winding-up order
Ignore section 130(4).
Section 131
Company's statement of affairs
(a) Treat references to the official receiver as references to the bank liquidator.
(b) A creditor or contributory of the bank is entitled to receive a copy of a statement under section 131 on request to the bank liquidator.
Section 135
Provisional appointment
(a) Treat the reference to the presentation of a winding-up petition as a reference to the making of an application for a bank insolvency order.
(b) Subsection (2) applies in relation to England and Wales and Scotland (and subsection (3) does not apply).
(c) Ignore the reference to the official receiver.
(d) Only a person who is qualified to act as an insolvency practitioner in relation to the bank and who consents to act may be appointed.
(e) A provisional bank liquidator may not pay dividends to creditors.
(f) The appointment of a provisional bank liquidator lapses on the appointment of a bank liquidator.
Section 141
Liquidation Committee (England and Wales)
Ignore the amendment made by paragraph 36 of Schedule 9 to the 2015 Act. The application of section 141 is subject to—
(a)sections 100, 101 and 109 of this Act,
(b)rules under section 411 (as applied by section 125 of this Act) which may, in particular, adapt section 141 to reflect (i) the fact that the bank liquidator is appointed by the court and (ii) the possibility of calling creditors' meetings under other provisions, and
(c)the omission of references to the official receiver.
Section 142
Liquidation Committee (Scotland)
Ignore the amendments made by paragraph 37 of Schedule 9 to the 2015 Act. The application of section 142 is subject to—
(a)sections 100, 101 and 109 of this Act,
(b)rules under section 411 (as applied by section 125 of this Act) which may, in particular, adapt section 142 to reflect (i) the fact that the bank liquidator is appointed by the court and (ii) the possibility of calling creditors' meetings under other provisions, and
(c)the omission of references to the official receiver.
Section 143
General functions of liquidator
(a) Section 143(1) is subject to Objective 1 in section 99 above.
(b) Ignore section 143(2).
Section 144
Custody of property
Section 145
Vesting of property
Section 146
Duty to summon final meeting
Section 146 is not applied–but section 115 below makes similar provision.
Section 147
Power to stay or sist proceedings
An application may be made only by—
(a)the bank liquidator,
(b)the PRA,
(c)the Bank of England,
(d)the FSCS, or
(e)a creditor or contributory (but only if the liquidation committee has passed a full payment resolution).
Section 148
List of contributories and application of assets
By virtue of the Insolvency Rules the functions under this section are largely delegated to the liquidator–rules by virtue of section 125 may achieve a similar delegation to the bank liquidator.
Section 149
Debts due from contributories
Section 150
Power to make calls
Section 152
Order on contributory: evidence
Section 153
Exclusion of creditors
Section 154
Adjustment of rights of contributories
Section 155
Inspection of books by creditors
In making or considering whether to make an order under section 155 the court shall have regard to Objective 1 in section 99 above.
Section 156
Payment of expenses of winding up
Section 157
Attendance at company meetings (Scotland)
Section 158
Power to arrest absconding contributory
Section 159
Powers to be cumulative
Section 159 is not applied–but subsection (5) above makes similar provision.
Section 160
Delegation of powers to liquidator (England and Wales)
Ignore the amendment made by paragraph 39 of Schedule 9 to the 2015 Act.
Section 161
Orders for calls on contributories (Scotland)
Section 162
Appeals from orders (Scotland)
An appeal may be brought only if the liquidation committee has passed a full payment resolution.
Section 167 and Schedule 4
General powers of liquidator
(a)An application to the court may not be made under section 167(3) unless the liquidation committee has passed a full payment resolution (although a creditor or contributory may apply to the court with respect to any action (or inaction) of the liquidation committee, under section 101(3) above).
(b)In exercising or considering whether to exercise a power under Schedule 4 the bank liquidator shall have regard to Objective 1 in section 99.
(c)A reference to the liquidation committee is to the liquidation committee established by section 100.
(d)The power in paragraph 4 of Schedule 4 includes the power to submit matters to arbitration.
Some additional general powers are conferred by section 104 below.
Section 168
Supplementary powers of liquidator
(za) Ignore the amendment made by paragraph 41 of Schedule 9 to the 2015 Act.
(a) A direction or request under section 168(2) has no effect unless the liquidation committee has passed a full payment resolution.
(b) Section 168(5) also applies in the case of the imposition of bank insolvency by order of the Court of Session.
(c) An application to the court may not be made under section 168(5) unless the liquidation committee has passed a full payment resolution (except as provided in section 100 or 102 above).
Section 169
Supplementary powers (Scotland)
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) Powers of the bank liquidator by virtue of section 169(2) are subject to Objective 1 in section 99 above.
Section 170
Liquidator's duty to make returns
The liquidation committee is added to the list of persons able to apply under section 170(2).
Section 172
Removal of liquidator
Section 172 is not applied to a bank liquidator–but section 108 makes similar provision.
Section 172(1), (2) and (5) are applied to a provisional bank liquidator.
Section 174
Release of liquidator
Section 174 is not applied–but section 115 makes similar provision.
Section 175
Preferential debts
Section 176
Preferential charge on goods restrained
Section 176AZA
Non-preferential debts of financial institutions
Section 176ZA
Expenses of winding up
Section 176ZB
Application of proceeds of office-holder claims
Section 176A
Share of assets for unsecured creditors
Section 177
Appointment of special manager
Section 178
Power to disclaim onerous property
Section 179
Disclaimer of leaseholds
Section 180
Land subject to rentcharge
Section 181
Disclaimer: powers of court
Section 182
Leaseholds
Section 183
Effect of execution or attachment (England and Wales)
Section 184
Execution of writs (England and Wales)
Section 185
Effect of diligence (Scotland)
In the application of section 24(1) and (2) of the Bankruptcy (Scotland) Act 2016 the reference to an order of the court awarding winding up is a reference to the making of the bank insolvency order.
Section 186
Rescission of contracts by court
Section 187
Transfer of assets to employees
Section 188
Publicity
Section 189
Interest on debts
Section 190
Exemption from stamp duty
Section 191
Company's books as evidence
Section 192
Information about pending liquidations
Section 193
Unclaimed dividends (Scotland)
Section 194
Resolutions passed at adjourned meetings
Section 194 applies as it applied before its repeal by paragraph 46 of Schedule 9 to the 2015 Act.
Section 195
Meetings to ascertain wishes of creditors or contributories
(a) Ignore the amendments made by paragraph 47 of Schedule 9 to the 2015 Act.
(b) The power to have regard to the wishes of creditors and contributories is subject to Objective 1 in section 99.
Section 196
Judicial notice of court documents
Section 197
Commission for receiving evidence
Section 198
Court order for examination of persons (Scotland)
Section 199
Costs of application for leave to proceed (Scotland)
Section 200
Affidavits
Section 206
Fraud in anticipation of winding up
Section 207
Transactions in fraud of creditors
Section 208
Misconduct in course of winding up
Ignore the amendment made by paragraph 52 of Schedule 9 to the 2015 Act.
Section 209
Falsification of company's books
Section 210
Material omissions
Section 211
False representations to creditors
Section 212
Summary remedy against directors, &c.
Section 213
Fraudulent trading
Section 214
Wrongful trading
(a) Treat the reference in subsection (2)(b) to entering insolvent administration as a reference to entering bank administration under Part 3 of this Act at a time when the bank’s assets are insufficient for the payment of its debts and other liabilities and the expenses of the administration.
(b) Ignore subsection (6A).
Section 215
Sections 213 & 214: procedure
Section 216
Restriction on re-use of company names
Section 217
Personal liability for debts
Section 218
Prosecution of officers and members of company
(a) Ignore subsections (4) and (6).
(b) In subsection (3), treat the second reference to the official receiver as a reference to the Secretary of State.
(c) In subsection (5) treat the reference to subsection (4) as a reference to subsection (3).
Section 219
Obligations under section 218
Section 231
Appointment of 2 or more persons
Section 232
Validity of acts
Section 233
Utilities
Section 234
Getting in company's property
Section 235
Co-operation with liquidator
Ignore references to the official receiver
Section 236
Inquiry into company's dealings
Ignore references to the official receiver
Section 237
Section 236: enforcement by court
Section 238
Transactions at undervalue (England and Wales)
Anything done by the bank in connection with the exercise of a stabilisation power under Part 1 of this Act is not a transaction at an undervalue for the purposes of section 238.
Section 239
Preferences (England and Wales)
Action taken by the bank in connection with the exercise of a stabilisation power under Part 1 of this Act does not amount to giving a preference for the purpose of section 239.
Section 240
Sections 238 & 239: relevant time
Section 241
Orders under sections 238 & 239
Having notice of the relevant proceedings means having notice of—
(a)an application by the Bank of England, the PRA or the Secretary of State for a bank insolvency order, or
(b)notice under section 120 below.
Section 242
Gratuitous alienations (Scotland)
Anything done by the bank in connection with the exercise of a stabilisation power under Part 1 of this Act is not a gratuitous alienation for the purpose of section 242 or any other rule of law.
Section 243
Unfair preferences (Scotland)
Action taken by the bank in connection with the exercise of a stabilisation power under Part 1 of this Act does not amount to an unfair preference for the purpose of section 243 or any other rule of law.
Section 244
Extortionate credit transactions
Section 245
Avoidance of floating charges
Section 246
Unenforceability of liens
Section 246ZD
Power to assign certain causes of action
Sections 386 & 387, and Schedule 6 (and Schedule 4 to the Pension Schemes Act 1993)
Preferential debts
Section 387A
Financial institutions and their non-preferential debts
Section 389
Offence of acting without being qualified
Treat references to acting as an insolvency practitioner as references to acting as a bank liquidator.
Sections 390 to 391T
Authorisation and regulation of insolvency practitioners
(a) In section 390 treat references to acting as an insolvency practitioner as references to acting as a bank liquidator.
(b) Read subsection (2) of that section (as so modified) as if after “authorised” there were inserted “to act as an insolvency practitioner”.
(c) An order under section 391 has effect in relation to any provision applied for the purposes of bank insolvency.
(d) In sections 390A, 390B(1) and (3), 391O(1)(b) and 391R(3)(b), in a reference to authorisation or permission to act as an insolvency practitioner in relation to (or only in relation to) companies the reference to companies has effect without the modification in subsection (4)(h) of this section.
(e) In sections 391Q(2)(b) and 391S(3)(e) the reference to a company has effect without the modification in subsection (4)(h) of this section.
Sections 423–425
Transactions defrauding creditors
Anything done by the bank in connection with the exercise of a stabilisation power under Part 1 of this Act is not a transaction at an undervalue for the purposes of section 423.
Sections 430 to 432and Schedule 10
Offences
Section 433
Statements: admissibility
For section 433(1)(a) and (b) substitute a reference to a statement prepared for the purposes of a provision of this Part.

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Source: https://www.legislation.gov.uk/ukpga/2009/1/section/103 (the official version)
Page: https://openlegislation.uk/banking-act-2009/section-103
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.