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The Insolvent Partnerships (Amendment) Order 2006

S.I. 2006/622 · Made 7 March 2006

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

This Statutory Instrument has been made in consequence of defects in S.I. 2005/1516 and is being issued free of charge to all known recipients of that Statutory Instrument.

INSOLVENCY, ENGLAND AND WALES

Made 7th March 2006

Laid before Parliament 8th March 2006

Coming into force 6th April 2006

The Lord Chancellor, in exercise of the powers conferred upon him by section 420 of the Insolvency Act 1986f1, with the concurrence of the Secretary of State, makes the following Order:

Annotations to the whole text

Footnotes

f1

1986 c. 45: section 420 was amended by the Insolvency Act 1986 (Amendment) Regulations 2002, S.I. 2002/1037.

Contents

  1. 1Citation, commencement and interpretation
  2. 2Transitional provisions
  3. 3Amendment to Article 8 of the Insolvent Partnerships Order 1994
  4. 4Amendment to Article 10 of the Insolvent Partnerships Order 1994
  5. 5Amendment to Schedule 2 to the Insolvent Partnerships Order 1994
  6. 6Amendment to Schedule 3 to the Insolvent Partnerships Order 1994
  7. 7Amendment to Schedule 4 to the Insolvent Partnerships Order 1994
  8. 8Amendment to Schedule 5 to the Insolvent Partnerships Order 1994
  9. 9Amendment to Schedule 6 to the Insolvent Partnerships Order 1994
  10. 10Amendment to Schedule 9 to the Insolvent Partnerships Order 1994
  11. Signature
  12. Schedule Schedule
  13. Explanatory note

1Citation, commencement and interpretation

(1)

This Order may be cited as the Insolvent Partnerships (Amendment) Order 2006 and shall come into force on 6th April 2006 (“the commencement date”).

(2)

In this Order—

  • “the Act” means the Insolvency Act 1986; and

  • “the 1994 Order” means the Insolvent Partnerships Order 1994f1.

2Transitional provisions

The amendments to the 1994 Order set out in this Order do not apply to any insolvency proceedings in relation to an insolvent partnership commenced before the commencement date.

3Amendment to Article 8 of the Insolvent Partnerships Order 1994

In Article 8(5)(a) omit “(other than section 176A)”.

4Amendment to Article 10 of the Insolvent Partnerships Order 1994

In Article 10(3)(a) omit “(other than section 176A)”.

5Amendment to Schedule 2 to the Insolvent Partnerships Order 1994

(1)

Schedule 2 to the 1994 Order (modified provisions of Part 2 of, and Schedule B1 to, the Act (Administration) as applied by Article 6) is amended as follows.

(2)
(a)

In paragraph 7 of Schedule 2, in modified paragraph 14(2)(b), insert after the words “the partnership,” the word “or”.

(b)

In paragraph 8 of Schedule 2, in modified paragraph 15, for modified paragraph 15(2) substitute—

“(2)

For the purposes of this paragraph, one agricultural floating charge is prior to another in accordance with the provisions of section 8(2) of the Agricultural Credits Act 1928f1.”

6Amendment to Schedule 3 to the Insolvent Partnerships Order 1994

In paragraph 3 of Schedule 3 to the 1994 Order (provisions of the Act which apply with modifications for the purposes of article 7), in modified section 221(6) after “123,” insert “176A,”.

7Amendment to Schedule 4 to the Insolvent Partnerships Order 1994

In paragraph 3 of Schedule 4 to the 1994 Order (provisions of the Act which apply with modifications for the purposes of article 8), in modified section 221(6) after “154,” insert “176A,”.

8Amendment to Schedule 5 to the Insolvent Partnerships Order 1994

In paragraph 2 of Schedule 5 to the 1994 Order (provisions of the Act which apply with modifications for the purposes of article 9), in modified section 221(6) after “124(2) and (3),” insert “176A,”.

9Amendment to Schedule 6 to the Insolvent Partnerships Order 1994

In paragraph 4 of Schedule 6 to the 1994 Order (provisions of the Act which apply with modifications for the purposes of article 10), in modified section 221(6) after “154,” insert “176A,”.

10Amendment to Schedule 9 to the Insolvent Partnerships Order 1994

In Schedule 9 to the 1994 Order (forms) for Forms 1A and 1B substitute the forms so numbered in the Schedule to this Order.

Signature

Falconer of Thoroton C

3rd March 2006

Gerry Sutcliffe

Parliamentary Under Secretary of State for Employment Relations and Consumer Affairs

Department of Trade and Industry

7th March 2006

Explanatory note

(This note is not part of the Order)

This Order corrects errors in the Insolvent Partnerships (Amendment) Order 2005 (S.I. 2005/1516) which amended the Insolvent Partnerships Order 1994 (S.I. 1994/2421) (“the 1994 Order”).

Articles 3 and 4 remove references to section s176A of the Insolvency Act 1986 which were wrongly inserted into the 1994 Order by the Insolvent Partnerships (Amendment) Order 2005 (S.I. 2005/1516). The correct amendments are at Articles 6, 7, 8 and 9 of this Order.

Article 5(2)(a) clarifies the modification of paragraph 14 of Schedule B1 to the Insolvency Act 1986 made by paragraph 7 of Schedule 2 to the 1994 Order by making it clear that the criteria in the sub-paragraphs of paragraph 1 are cumulative.

Article 5(2)(b) amends paragraph 8 of Schedule 2 to the 1994 Order so as to provide that the priority between agricultural floating charges for the purposes of the appointment of an administrator by the holder of a floating charge as provided for by modified paragraph 15(2) of Schedule B1 to the Insolvency Act 1986 shall be determined in accordance with the provisions of the Agricultural Credits Act 1928 (c. 43).

Articles 6, 7, 8 and 9 amend the application of section 221 of the Insolvency Act 1986 to ensure that the requirement to set aside a “prescribed part” (section 176A of the Insolvency Act 1986) does not apply in the winding up of an insolvent partnership.

Article 10 substitutes revised Forms 1A and 1B as a result of mistakes in those forms as set out in S.I. 2005/1516.

No regulatory impact assessment has been prepared for this Order as it will not impose any significant costs on business.