Explanatory note
(This note is not part of the 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.