Paragraph 12 Sections 136, 293 and 294: Functions of official receiver in relation to office of responsible insolvency practitionerI1

Sections 136, 293 and 294 are modified so as to read as follows—

“136

(1)

The following provisions of this section F1... have effect, subject to section 140 below, where insolvency orders are made in respect of an insolvent partnership and one or more of its insolvent members by virtue of article 8 of the Insolvent Partnerships Order 1994.

(2)

The official receiver, by virtue of his office, becomes the responsible insolvency practitioner of the partnership and of any insolvent member and continues in office until another person becomes responsible insolvency practitioner under the provisions of this Part.

(3)

The official receiver is, by virtue of his office, the responsible insolvency practitioner of the partnership and of any insolvent member during any vacancy.

(4)

At any time when he is the responsible insolvency practitioner of the insolvent partnership and of any insolvent member, the official receiver may F2in accordance with the rules seek nominations from the creditors of the partnership and the creditors of such member, for the purpose of choosing a person to be responsible insolvency practitioner in place of the official receiver.

F3(5)

It is the duty of the official receiver—

(a)

as soon as practicable in the period of 12 weeks beginning with the day on which the insolvency order was made, to decide whether to exercise his power under subsection (4), and

(b)

if in pursuance of paragraph (a) he decides not to exercise that power, to give notice of his decision, before the end of that period, to the court and to the creditors of the partnership and of the creditors of any insolvent member against whom an insolvency order has been made, and

(c)

(whether or not he has decided to exercise that power) to exercise his power under subsection (4) if he is at any time requested, in accordance with the rules, to do so by one-quarter, in value, of either—

(i)

the partnership’s creditors, or

(ii)

the creditors of any insolvent member against whom an insolvency order has been made,

and accordingly, where the duty imposed by paragraph (c) arises before the official receiver has performed a duty imposed by paragraph (a) or (b), he is not required to perform the latter duty.

(6)

A notice given under subsection (5)(b) to the creditors must contain an explanation of the creditors’ power under subsection (5)(c) to require the official receiver to seek nominations from the creditors of the partnership and of any insolvent member.

Duty of official receiver to summon meetings

F4136A

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