{
  "url": "https://openlegislation.uk/charitable-incorporated-organisations-insolvency-and-dissolution-amendment-no-2-regulations-2020/regulation-5",
  "json_url": "https://openlegislation.uk/charitable-incorporated-organisations-insolvency-and-dissolution-amendment-no-2-regulations-2020/regulation-5.json",
  "legislation": "uksi/2020/856",
  "legislation_title": "The Charitable Incorporated Organisations (Insolvency and Dissolution) (Amendment) (No. 2) Regulations 2020",
  "legislation_url": "https://openlegislation.uk/charitable-incorporated-organisations-insolvency-and-dissolution-amendment-no-2-regulations-2020",
  "path": "regulation/5",
  "kind": "regulation",
  "number": "5",
  "heading": "Amendment of the Charitable Incorporated Organisations (Insolvency and Dissolution) Regulations 2012",
  "text": "(1) Paragraph 1 of Schedule 1 (application of the Insolvency Act 1986 to CIOs) is amended as follows.\n(2) Sub-paragraph (2)(a) is amended as follows—\n(a) before sub-paragraph (i) insert—\n“(ai) sections A5, A15, A27 and A49 to A51;”;\n(b) after sub-paragraph (iii) insert—\n“(iiia) paragraphs 3 to 18 and 20 to 22 of Schedule ZA1;”;\n(c) omit sub-paragraph (iv).\n(3) In sub-paragraph (5), in substituted section 122(1) omit paragraph (d).\n(4) In the table in sub-paragraph (7)—\n(a) in the entry relating to section 4A (approval of arrangement), for the second column substitute “Omit subsections (5) and (5A).”;\n(b) at the appropriate place insert—\n“\nSection A3 (Obtaining moratorium by filing documents)\nOmit subsection (1)(b).\nSection A7 (Beginning of moratorium)\nOmit subsection (1)(c).\nSection A9 (End of moratorium)\nIn subsection (3) omit “section A15 (extension by court in course of other proceedings).”.\nSection A16 (Entry into insolvency procedure etc)\nOmit subsections (1)(a) and (2).\nSection A17 (Obligation to notify change in end of moratorium)\nIn subsection (1) omit entry 8 of the table.\nSection A20 (Restrictions on insolvency proceedings etc)\nSubsection (1)\nOmit paragraph (b) and for paragraph (c) substitute:\n“(c) a resolution for voluntary winding up under section 84(1) may be passed only if the resolution is recommended by the charity trustees,”.\nSubsection (3)\nFor subsection (3) substitute:\n“(3) For these purposes, “excepted petition” means a petition presented by the Attorney General or the Charity Commission under section 113 of the Charities Act 2011.”.\nSection A21 (Restrictions on enforcement and legal proceedings)\nOmit subsection (1)(b).\nSection A22 (Floating charges)\nIn subsection (7) for “as defined by section A27”, in each place it occurs, substitute “as defined by section A31”.\nSection A24 (Duty of directors to notify monitor of insolvency proceedings etc)\nFor subsection (2) substitute:\n“(2) The charity trustees must notify the monitor if, during a moratorium for the CIO, they recommend a resolution for voluntary winding up be passed under section 84(1).”.\nSection A25 (Restrictions on obtaining credit)\nIn subsection (2)(b) omit “(in Scotland, hired)”.\nSection A26 (Restrictions on grant of security)\nOmit subsection (6).\nSection A31 (Disposal of charged property free from charge)\nSubsection (11)\nOmit “(as defined by section A27)”.\nNew subsection (12)\nAfter subsection (11) insert:\n“(12) In this section—\n“collateral security” has the same meaning as in the Financial Markets and Insolvency (Settlement Finality) Regulations 1999;\n“financial collateral arrangement” has the same meaning as in the Financial Collateral Arrangements (No.2) Regulations 2003;\n“market charge” has the same meaning as in Part 7 of the Companies Act 1989;\n“system-charge” has the meaning given by the Financial Markets and Insolvency Regulations 1996.”.\nSection A32 (Disposal of hire-purchase property)\nOmit subsection (7).\nSection A42 (Challenge to monitor’s actions)\nIn subsection (2)(a) for “creditor, director or member” substitute “creditor or director”.\nSection A43 (Challenges to monitor remuneration in insolvency proceedings)\nIn subsection (2)(c) omit “(or, in Scotland, the expenses)”.\nSection A44 (Challenges to charity trustees’ actions)\nIn subsection (1) omit “or member”, and “or members” in both places.\nSection A48 (Prosecution of delinquent officers of CIO)\nSubsection (3)\nOmit paragraphs (b) and (c).\nSubsection (4)\nAt end insert “as if the CIO were a company.”.\nSubsection (8)\nOmit paragraph (b).\nSubsection (10)\nOmit “, the Lord Advocate”.\nSection A52 (Void provisions in floating charge documents)\nIn subsection (4) for “as defined by section A27”, in each place it occurs, substitute “as defined by section A31”.\nSection A54 (Interpretation)\nSubsection (1)\nIn the definition of “unable to pay its debts” omit paragraph (b).\nSubsection (3)\nOmit subsection (3).\nSection A55 (Regulations)\nIn subsection (2) omit “, unless they are made by the Scottish Ministers”.\n”;\n(c) in the entry relating to section 432(4) (offences by bodies corporate), for the second column substitute “Omit the words “A27(1)” and “51, 53, 54, 62, 64, 66,””;\n(d) at the appropriate place insert—\n“\nSCHEDULE ZA1 (Eligible CIOs)\nParagraph 1\nOmit the references to paragraphs 3 to 18.\nParagraph 2\nFor sub-paragraph (4) substitute:\n“(4) In sub-paragraph (3)(g) “relevant petition” means a petition presented by the Attorney General or the Charity Commission under section 113 of the Charities Act 2011.”.\n”;\n(e) omit the entries relating to Schedule A1 (moratorium where directors propose voluntary arrangements);\n(f) in the entry relating to Schedule 10 (punishment of offences), in the second column, after “table,” insert “omit the entries relating to sections A27 and A48, and”.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "S.I. 1999/2979, amended by S.I. 2010/2993."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "S.I. 2003/3226."
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "1989 c. 40, section 173(1), amended by S.I. 1991/880, regulation 9, S.I. 2017/1064, regulation 3(1), 19(a)(i), (ii), 19(b)."
    },
    {
      "type": "footnote",
      "label": "f4",
      "text": "S.I. 1996/1469."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2020/856/regulation/5",
    "retrieved_at": "2026-10-28T22:26:53.666361+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}