Section 54 Winding up on petition of Treasury.F1C1
United Kingdom
The Treasury may present a petition for the winding up, in accordance with F2Part IV or V of the Insolvency Act 1986, of an insurance company to which this Part of this Act applies, being a company which may be wound up by the court under the provisions of that Act, on the ground—
that the company is unable to pay its debts within the meaning of sections 123 or sections 222 to 224 of that Act;
that the company has failed to satisy an obligation to which it is or was subject by virtue of this Act or any enactment repealed by this Act or by the M1Insurance Companies Act 1974; or
that the company is a UK company and has failed to satisfy an obligation to which it is subject by virtue of any provision of the law of another EEA State which—
gives effect to the general or long term insurance Directives; or
is otherwise applicable to the insurance activities of the company in that State;
that the company, being under the obligation imposed by F4sections 221 and 222 of the Companies Act with respect to the keeping of accounting records, has failed to satisfy that obligation or to produce records kept in satisfaction of that obligation and that the TreasuryF5areunable to ascertain its financial position.
The Treasury may present a petition for the winding up, in accordance with the F6Part V or VI of the Insolvency (Northern Ireland) Order 1989, of an insurance company to which this Part of this Act applies, being a company which may be wound up by the court under the provisions of that Act, on the ground—
that the company has failed to satisfy an obligation to which it is or was subject by virtue of this Act or any enactment repealed by this Act or by the M2Insurance Companies Act 1980; or
that the company is a UK company and has failed to satisfy an obligation to which it is subject by virtue of any provision of the law of another EEA State which—
gives effect to the general or long term insurance Directives; or
is otherwise applicable to the insurance activities of the company in that State;
that the company, being under an obligation imposed by F10Articles 229 to 231 of theF11Part V or VI of the Insolvency (Northern Ireland) Order 1989 with respect to the keeping of accounting records, has failed to satisfy that obligation or to produce records kept in satisfaction of that obligation and that the Treasuryare unable to ascertain its financial position;
and F12Article 433 of the said Order of 1986 shall have effect in relation to such an insurance company as if any reference to the Department of Commerce for Northern Ireland were a reference to the Treasury.
In any proceedings on a petition to wind up an insurance company presented by the Treasury under subsection (1) of (2) above, evidence that the company was insolvent—
at the close of the period to which—
the accounts and balance sheet of the company last deposited under section 22 above; or
any statement of the company last deposited under section 25 above,
relate; or
at any date or time specified in a requirement under section 42 or 44 above,
shall be evidence that the company continues to be unable to pay its debts, unless the contrary is proved.
If, in the case of an insurance company to which this Part of this Act applies, being a company which may be wound up by the court under the provisions of the F13Insolvency Act 1986 or, as the case may be, the F14Insolvency (Northern Ireland) Order 1989, it appears to the Treasury that it is expedient in the public interest that the company should be wound up, F15the Treasury may, unless the company is already being wound up by the court, present a petition for it to be so wound up if the court thinks it just and equitable for it to be so wound up.
The Secretary of State may exercise the powers conferred on the Treasury by subsections (1) to (4) above, and for this purpose those subsections shall be construed as if references to the Treasury were references to the Secretary of State.
Where a petition for the winding up of an insurance company to which this Part of this Act applies is presented by a person other than the Treasury, a copy of the petition shall be served on F17theTreasury and they shall be entitled to be heard on the petition.
Annotations
Textual amendments
- F1
Words in s. 54 substituted (5.1.1998) by S.I 1997/2781, art. 8(1), Sch. Pt. I para.38(a) (with art. 7)
- F2
Words substituted by Insolvency Act 1986 (c. 45, SIF 66), s. 439(2), Sch. 14
- F3
S. 54(1)(bb) substituted (1.7.1994) by S.I. 1994/1696, reg. 31(1)
- F4
Words substituted by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2
- F5
Words in s. 54(1)(c)(2)(c) substituted (5.1.1998) by S.I 1997/2781, art. 8(1), Sch. Pt. I para.38(b)(c) (with art. 7)
- F6
Words in s. 54(2) substituted (N.I.) (1.10.1991) by S.I. 1989/2405 (N.I. 19), art. 381(2), Sch. 9 para. 34(a)(i); S.R. 1991/411, art. 2
- F7
Words substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II
- F8
Words in s. 54(2)(a) substituted (N.I.) (1.10.1991) by S.I. 1989/2405 (N.I. 19), art. 381(2), Sch. 9 para. 34(a)(ii); S.R. 1991/411, art. 2
- F9
S. 54(2)(bb) substituted (1.7.1994) by S.I. 1994/1696, reg. 31(2)
- F10
Words substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II
- F11
Words in s. 54(2)(c) substituted (N.I.) (1.10.1991) by S.I. 1989/2405 (N.I. 19), art. 381(2), Sch. 9 para. 34(a)(i); S.R. 1991/411, art. 2
- F12
Words substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II
- F13
Words substituted by Insolvency Act 1986 (c. 45, SIF 66), s. 439(2), Sch. 14
- F14
Words in s. 54(4) substituted (N.I.) (1.10.1991) by S.I. 1989/2405 (N.I. 19), art. 381(2), Sch. 9 para. 34(b)(i); S.R. 1991/411, art. 2
- F15
Words in s. 54(4) substituted (5.1.1998) by S.I 1997/2781, art. 8(1), Sch. Pt. I para. 38(d) (with art. 7)
- F16
S. 54(4A) inserted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para.38(e) (with art. 7)
- F17
Words in s.54(5) substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 38(f) (with art. 7)
Marginal citations
- M1
- M2
Modifications
- C1
S. 54: power to contract out functions conferred (18.11.1998) by S.I. 1998/2842, arts. 2, 3, Sch. Pt. I para. 38
- C2
S. 54(1)-(4): functions to be exercised by the Secretary of State and the Treasury concurrently (5.1.1998) by S.I. 1997/2781, art. 4(1)(d) (with art. 7)
Notes on the whole Act
Textual amendments
- F1
Act repealed (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 3(1)(b)
Notes on Part II
Modifications
- C1
Pt. II (ss. 15-71) restricted (1.1.1993) by S.I. 1992/3218, reg65
Pt. II (ss. 15-71) extended (24.12.1996) by S.I. 1996/3011, reg. 3(1)(b), 10(1)