Explanatory note

This Order provides for the coming into force of paragraphs 5 and 45(1), (2), (3) and (5) of Schedule A1 to the Insolvency Act 1986 (c. 45) which is inserted into that Act by paragraph 4 of Schedule 1 to the Insolvency Act 2000 (c. 39). The latter provision and section 1 of the Insolvency Act 2000 are also brought into force, but only as far as is necessary to give effect to the provisions referred to above. The provisions of Schedule A1 to the Insolvency Act 1986 introduce the option of a moratorium for a small company whilst directors propose a voluntary arrangement (these provisions are not yet in force). The power set out in paragraph 5 allows the Secretary of State to make regulations to modify the qualifications for eligibility of a company for a moratorium.