Paragraph 3 Section 221: Winding up of unregistered companiesI1

Section 221 is modified so as to read as follows—

“221

(1)

Subject to subsections (2) and (3) below and to the provisions of this Part, any insolvent partnership may be wound up under this Act if it has, or at any time had, in England and Wales either—

(a)

a principal place of business, or

(b)

a place of business at which business is or has been carried on in the course of which the debt (or part of the debt) arose which forms the basis of the petition for winding up the partnership.

(2)

Subject to subsection (3) below, an insolvent partnership shall not be wound up under this Act if the business of the partnership has not been carried on in England and Wales at any time in the period of 3 years ending with the day on which the winding-up petition is presented.

(3)

If an insolvent partnership has a principal place of business situated in Scotland or in Northern Ireland, the court shall not have jurisdiction to wind up the partnership unless it had a principal place of business in England and Wales—

(a)

in the case of a partnership with a principal place of business in Scotland, at any time in the period of 1 year, or

(b)

in the case of a partnership with a principal place of business in Northern Ireland at any time in the period of 3 years,

ending with the day on which the winding-up petition is presented.

F1(3A)

The preceding subsections are subject to Article 3 of the EC Regulation (jurisdiction under the EC Regulation).

(4)

No insolvent partnership shall be wound up under this Act voluntarily.

(5)

To the extent that they are applicable to the winding up of a company by the court in England and Wales on a creditor’s petition, all the provisions of this Act and the Companies Act about winding up apply to the winding up of an insolvent partnership as an unregistered company—

(a)

with the exceptions and additions mentioned in the following subsections of this section, and

(b)

with the modifications specified in Part II of Schedule 4 to the Insolvent Partnerships Order 1994.

(6)

Sections 73(1), 74(2)(a) to (d) and (3), 75 to 78, 83, 154, F2176A, 202, 203, 205 and 250 shall not apply.

(7)

Unless the contrary intention appears, a member of a partnership against whom a insolvency order has been made by virtue of article 8 of the Insolvent Partnerships Order 1994 shall not be treated as a contributory for the purposes of this Act.

F3(8)

The circumstances in which an insolvent partnership may be wound up as an unregistered company are as follows—

(a)

the partnership is unable to pay its debts,

(b)

at the time at which a moratorium for the insolvent partnership under section 1A comes to an end, no voluntary arrangement approved under Part I of this Act has effect in relation to the insolvent partnership.

(9)

Every petition for the winding up of an insolvent partnership under Part V of this Act shall be verified by affidavit in Form 2 in Schedule 9 to the Insolvent Partnerships Order 1994.”.