Insolvency (Amendment) Act (Northern Ireland) 2026

In paragraph 3 of modified Schedule 1 (set out in paragraph 57), at the beginning, insert “Without prejudice to Article 28 or 30 of the Property (Northern Ireland) Order 1997,”.

Part 3 — Amendments to Schedule 3

32

• (1) This Part of this Schedule amends Schedule 3 to the 1995 Order, which sets out certain modified provisions of the 1989 Order.

• (2) References in this Part to a numbered paragraph are to that paragraph of Schedule 3 to the 1995 Order, except where otherwise stated.

33

In paragraph 1—

• (a) after “in Part I,” insert “Articles 116, 117, 142, 143, 146 and 148 are modified in accordance with Part 2,”;

• (b) after “113”, insert “, 118, 120, 164”.

34

• (1) Modified Article 185 (set out in paragraph 3) is amended as follows.

• (2) In paragraph (3A), for “EC Regulation” (in both places) substitute “EU Regulation”.

• (3) In paragraph (5), omit “and the Companies Order”.

• (4) In paragraph (6), for “62” substitute “63”.

35

After paragraph 8 insert—

(8A) Article 116 has effect as if, in each place that it occurs, “and contributories” were omitted. (8B) Article 117 has effect as if— (a) in paragraph (2), “and contributories” were omitted; (b) after paragraph (3), there were inserted— (3A) If, on an application under paragraph (1) or a reference made in pursuance of a decision under paragraph (2), no appointment is made, the official receiver continues to be responsible insolvency practitioner of the partnership, but without prejudice to his power to make a further application or reference. (8C) Article 118 is modified so as to read as follows— (118) (1) This Article applies where an insolvency order is made in respect of an insolvent partnership by virtue of Article 7 of the Insolvent Partnerships Order (Northern Ireland) 1995. (2) The rules relating to decision making on the winding up of a company are to apply (with the necessary modifications) to decisions sought from creditors of the partnership. (8D) Article 120 is modified so as to read as follows— (120) (1) This Article applies where an insolvency order is made in respect of an insolvent partnership by virtue of Article 7 of the Insolvent Partnerships Order (Northern Ireland) 1995. (2) If the creditors of the partnership decide that a liquidation committee should be established, a liquidation committee is to be established in accordance with the rules. (3) A “liquidation committee” is a committee having such functions as are conferred on it by or under this Order. (4) The responsible insolvency practitioner must seek a decision from the creditors of the partnership as to whether a liquidation committee should be established if requested, in accordance with the rules, to do so by one-tenth in value of the creditors. (5) Paragraph (4) does not apply where the responsible insolvency practitioner is the official receiver. (6) The liquidation committee is not to be able or required to carry out its functions at any time when the official receiver is the responsible insolvency practitioner; but at any such time its functions are vested in the Department except to the extent that the rules otherwise provide. (7) Where there is for the time being no liquidation committee, and the responsible insolvency practitioner is a person other than the official receiver, the functions of such a committee are vested in the Department except to the extent that the rules otherwise provide. (8E) Article 142(1) has effect as if for “Parts 1 to 3” there were substituted “Parts 1 and 2”. (8F) Article 143 has effect as if for paragraph (2) there were substituted— (2) The responsible insolvency practitioner may seek a decision on any matter from the creditors of the partnership; and must seek a decision on a matter if requested to do so by one-tenth in value of the creditors. (8G) Article 146 has effect as if— (a) in paragraph (3)(a), “or contributories” were omitted; (b) in paragraph (6), for “in the prescribed circumstances” there were substituted “with the leave of the High Court (or, if appointed by the Department, with the leave of the Court or the Department)”. (8H) Article 148 has effect as if— (a) in paragraph (2)(a), “or contributories” were omitted; (b) in paragraph (4E), for “with effect from such time as may be prescribed.” there were substituted — (a) if he was appointed by the Department, with effect from such time as may be directed by the High Court or as the Department may, on the application of the person, determine, or (b) in any other case, with effect from such time as may be directed by the Court. (8I) Article 164 is modified so as to read as follows— (164) (1) The High Court may— (a) as to all matters relating to the winding up of an insolvent partnership, have regard to the wishes of the creditors (as proved to it by any sufficient evidence), and (b) if it thinks fit, for the purposes of ascertaining those wishes, direct qualifying decision procedures to be instigated or the deemed consent procedure to be used in accordance with any directions given by the Court, and appoint a person to report the result to the Court. (2) In having regard to the wishes of the creditors, the Court must have regard to the value of each creditor’s debt.

36

• (1) Modified Schedule 2 (set out in paragraph 10) is amended as follows.

• (2) Omit the headings for Parts 1 and 2.

• (3) At the beginning of paragraph 7 of modified Schedule 2, insert “Without prejudice to Article 28 or 30 of the Property (Northern Ireland) Order 1997,”.

Part 4 — Amendments to Schedule 4

37

• (1) This Part of this Schedule amends Schedule 4 to the 1995 Order, which sets out certain modified provisions of the 1989 Order.

• (2) References in this Part to a numbered paragraph are to that paragraph of Schedule 4 to the 1995 Order, except where otherwise stated.

38

• (1) Paragraph 1 is amended as follows.

• (2) In sub-paragraph (1), after “in Part I,” insert “Article 142 is modified in accordance with Part 2,”.

• (3) In sub-paragraph (2)—

• (a) after “160,” insert “164,”;

• (b) after “198,” insert “208ZE, 208ZF,”;

• (c) for “and 327” substitute “, 327, 345A and 345B”.

39

• (1) Modified Article 185 (set out in paragraph 3) is amended as follows.

• (2) In paragraph (3A), for “EC Regulation” (in both places) substitute “EU Regulation”.

• (3) In paragraph (5), omit “and the Companies Order”.

• (4) In paragraph (6), for “62” substitute “63”.

40

In modified Article 11(4)(a) (set out in paragraph 5), for “a meeting summoned by the trustee of that estate under Article 124 has been held” substitute “the trustee of that estate has vacated office under Article 146(6)”.

41

In modified Article 241(3) (set out in paragraph 6(3)), for “£750” substitute “£5,000”.

42

• (1) In modified Article 104(2) (set out in paragraph 8), omit the words from “a liquidator” to “the EC Regulation) or”.

• (2) In consequence of sub-paragraph (1), omit Article 5(2) of the Insolvent Partnerships (Amendment) Order (Northern Ireland) 2003 (SR 2003/144).

43

• (1) Modified Article 116 (set out in paragraph 12) is amended as follows.

• (2) In paragraph (1), omit “and of Article 116A”.

• (3) In paragraph (4), for “summon a combined meeting of” substitute “in accordance with the rules seek nominations from”.

• (4) After paragraph (4) insert—

(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 paragraph (4), (b) if in pursuance of sub-paragraph (a) he decides not to exercise that power, to give notice of his decision, before the end of that period, to the High Court and to the creditors of the partnership and 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 paragraph (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. (6) A notice under paragraph (5)(b) to the creditors must contain an explanation of the creditors’ power under paragraph (5)(c) to require the official receiver to seek nominations from the creditors of the partnership and of any insolvent member. (7) Where the creditors exercise their power under paragraph (5)(c) before the official receiver has performed the duty under paragraph (5)(a), the duties under paragraph (5)(a) and (b) no longer apply. (8) Where the creditors exercise their power under paragraph (5)(c) after the official receiver has performed the duty under paragraph (5)(a) but before he has performed the duty under paragraph (5)(b), the duty under paragraph (5)(b) no longer applies. (9) Where— (a) a person has been chosen in accordance with paragraph (4) to be the responsible insolvency practitioner of an insolvent partnership, and (b) an insolvency order is subsequently made against another insolvent member by virtue of Article 8 of the Insolvent Partnerships Order (Northern Ireland) 1995, that practitioner is also to be the responsible insolvency practitioner of that other member.

44

Modified Article 116A (set out in paragraph 12) is omitted.

45

In modified Article 117(3) (set out in paragraph 13)—

• (a) for “a meeting is held in pursuance of a decision under Article 116A(1)(a)” substitute “a nomination is sought from the creditors of the partnership and of any insolvent member”;

• (b) for “as a result of that meeting” substitute “by the creditors”.

46

• (1) Modified Article 117A (set out in paragraph 13) is amended as follows.

• (2) In paragraph (5), for the words from “shall” to the end substitute “must explain the procedure for establishing a liquidation committee under Article 120.”.

• (3) For paragraph (6) substitute—

(6) In a case where paragraph (3) applies, in the notice or advertisement the responsible insolvency practitioner must— (a) if a liquidation committee has been established under Article 120, state whether he proposes to appoint additional members of the committee under Article 120A(3), or (b) if such a committee has not been established, explain the procedure for establishing one.

47

• (1) Modified Article 118 (set out in paragraph 14) is amended as follows.

• (2) For paragraphs (2) to (4) substitute—

(2) Subject to paragraph (4), the rules relating to decision making on the winding up of a company are to apply (with the necessary modifications) to— (a) decisions sought from creditors of the partnership, (b) decisions sought from creditors of any corporate members against which an insolvency order has been made, and (c) decisions sought from creditors of any insolvent member where the decision is one to be made with creditors of the partnership. (3) Subject to paragraph (4), the rules relating to decision making on the bankruptcy of an individual are to apply (with the necessary modifications) to decisions sought from creditors of any individual member against whom an insolvency order has been made (unless paragraph (2)(c) applies). (4) Any decision to be made by the creditors of the partnership and of the insolvent member or members must be taken as if they were a single set of creditors.

• (3) In the heading to that Article, for “meetings of creditors” substitute “decision-making”.

48

• (1) Modified Article 119 (set out in paragraph 15) is amended as follows.

• (2) In paragraph (4), for the words from “he has no duty” to the end substitute “Article 116(5)(a) and (b) do not apply.”.

• (3) After paragraph (4) insert—

(5) Where— (a) a person has been appointed under this Article to be the responsible insolvency practitioner of an insolvent partnership, and (b) an insolvency order is subsequently made against another insolvent member by virtue of Article 8 of the Insolvent Partnerships Order (Northern Ireland) 1995, that practitioner is also to be the responsible insolvency practitioner of that other member.

49

For modified Article 120 (set out in paragraph 16) substitute—

(120) (1) This Article applies 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 (Northern Ireland) 1995. (2) If the creditors of the partnership and the creditors of any insolvent members (together as if they were a single set of creditors) decide that a liquidation committee should be established, a liquidation committee is to be established in accordance with the rules. (3) A “liquidation committee” is a committee having such functions as are conferred on it by or under this Order. (4) The responsible insolvency practitioner must seek a decision from the creditors of the partnership and the creditors of any insolvent members (together as if they were a single set of creditors) as to whether a liquidation committee should be established if requested, in accordance with the rules, to do so by one-tenth in value of the creditors. (5) Paragraph (4) does not apply where the responsible insolvency practitioner is the official receiver.

50

• (1) Modified Article 120A (set out in paragraph 16) is amended as follows.

• (2) In paragraph (3), for “Article 116A(5)” substitute “Article 116(9)”.

• (3) In paragraphs (3), (4), (5), (6) and (7), for “creditors’ committee” substitute “liquidation committee”.

51

For modified Article 124 (set out in paragraph 18) substitute—

(124) (1) This Article applies if it appears to the responsible insolvency practitioner of an insolvent partnership which is being wound up by virtue of Article 8 of the Insolvent Partnerships Order (Northern Ireland) 1995 and of its insolvent member or members that the winding up of the partnership or of any corporate member, or the administration of any individual member’s estate, is for practical purposes complete and the practitioner is not the official receiver. (2) The responsible insolvency practitioner must make up an account of the winding-up or administration, showing how it has been conducted and the property disposed of. (3) The responsible insolvency practitioner must— (a) send a copy of the account to the creditors of the partnership, other than opted-out creditors, and (b) give the partnership’s creditors, other than opted-out creditors, a notice explaining the effect of Article 148(4E) and how they may object to the liquidator’s release. (4) The liquidator must during the relevant period send to the High Court and, in the case of a corporate member, send to the registrar— (a) a copy of the account, and (b) a statement of whether any of the partnership’s creditors objected to the liquidator’s release. (5) The relevant period is the period of 7 days beginning with the day after the last day of the period prescribed by the rules as the period within which the creditors may object to the responsible practitioner’s release.

52

After paragraph 19 insert—

(19A) Article 142(1) has effect as if for “Parts 1 to 3” there were substituted “Parts 1 and 2”.

53

For modified Article 143(2) and (3) (set out in paragraph 20) substitute—

(2) The responsible insolvency practitioner may seek a decision on any matter from the creditors of the partnership or of any insolvent member; and must seek a decision on a matter if requested to do so by one-tenth in value of the creditors.

54

• (1) Modified Article 146 (set out in paragraph 21) is amended as follows.

• (2) For paragraph (2) substitute—

(2) Subject to paragraph (3), the responsible insolvency practitioner may be removed from office only by— (a) an order of the High Court, or (b) a decision, made by a creditors’ decision procedure instigated specially for that purpose in accordance with the rules, of the creditors of the partnership and the creditors of any insolvent member against whom an insolvency order has been made.

• (3) After paragraph (3) insert—

(3A) The provisional liquidator may be removed from office only by an order of the High Court.

• (4) For paragraph (6) substitute—

(6) A responsible insolvency practitioner who, under Article 124, has produced an account of the winding-up of the partnership or of any corporate member, or an account of the administration of an individual member’s estate, vacates office in relation to the partnership, that corporate member or that individual member’s estate immediately upon complying with the requirements of Article 124(4) in relation to the partnership, the corporate member or (as the case may be) the estate.

55

• (1) Modified Article 148 (set out in paragraph 22) is amended as follows.

• (2) In paragraph (2)(a), for “a combined general meeting of” substitute “the”.

• (3) For paragraph (4) substitute—

(4) A person other than the official receiver who has ceased to be a responsible insolvency practitioner has his release in accordance with paragraphs (4A) to (4E). (4A) Where the person has died, the person has his release with effect from the time at which notice is given to the High Court in accordance with the rules that the person has ceased to hold office. (4B) Where the person has been removed from office by the High Court or by the Department, the person has his release with effect from such time as the Department may, on the application of the person, determine. (4C) Where the person has vacated office under Article 146(4), the person has his release with effect from such time as the Department may, on the application of the person, determine. (4D) Where the person has resigned— (a) if the person was appointed by the Department, the person has his release with effect from such time as may be directed by the High Court or as the Department may, on an application by the person, determine; (b) if the person was appointed otherwise than by the Department, the person has his release with effect from such time as may be directed by the High Court. (4E) Where the person has vacated office under Article 146(6)— (a) if any of the creditors of the partnership or of any insolvent member objected to the person’s release before the end of the period for so objecting prescribed by the rules, the person has his release with effect from such time as the Department may, on the application of the person, determine; (b) otherwise, the person has his release with effect from the time at which the person vacated office.

56

In modified Article 149(1) (set out in paragraph 23), for “partnerships” (where it appears after the words “an insolvent”) substitute “partnership”.

57

• (1) Modified Article 149A (set out in paragraph 23) is amended as follows.

• (2) In paragraph (3), for “interest” substitute “interests”.

• (3) In paragraph (7)(b), for “Article 149B(1)(b)” substitute “Article 149B(1)(d)”.

• (4) In paragraph (9), after “referred to in” insert “sub-paragraph (a) of”.

58

In modified Article 149C(8) (set out in paragraph 23), for “the Insolvency Regulations (Northern Ireland) 1991 or the Insolvency (Fees) Order (Northern Ireland) 1991” substitute “the Insolvency Regulations (Northern Ireland) 1996 or the Insolvency (Fees) Order (Northern Ireland) 2006”.

59

After paragraph 24 insert—

(24A) Article 164 is modified so as to read as follows— (164) (1) The High Court may— (a) as to all matters relating to the winding up of an insolvent partnership, have regard to the wishes of the creditors (as proved to it by any sufficient evidence), and (b) if it thinks fit, for the purposes of ascertaining those wishes, direct qualifying decision procedures to be instigated or the deemed consent procedure to be used in accordance with any directions given by the Court, and appoint a person to report the result to the Court. (2) In having regard to the wishes of the creditors, the Court must have regard to the value of each creditor’s debt.

60

• (1) Modified Article 194 (set out in paragraph 26) is amended as follows.

• (2) In paragraph (1), for “provision” substitute “provisional”.

• (3) In paragraph (5), for “anyone” substitute “any one”.

61

After paragraph 27 insert—

(27ZA) Article 208ZE and Article 345A are modified so as to read as follows— (208ZE) (1) This Article applies where, for the purposes of this Order, a person (“P”) seeks a decision about any matter from— (a) the creditors of a partnership, (b) the creditors of a corporate member against which an insolvency order has been made, (c) the creditors of an individual member against whom an insolvency order has been made, or (d) the creditors of a partnership and of any insolvent members (together as if they were a single set of creditors). (2) The decision may be made by any relevant decision procedure P thinks fit, except that it may not be made by a creditors’ meeting unless paragraph (3) applies. (3) This paragraph applies if at least the minimum number of creditors make a request to P in writing that the decision be made by a creditors’ meeting. (4) If paragraph (3) applies, P must summon a creditors’ meeting. (5) Paragraph (2) is subject to any provision of this Order, the rules or any other legislation, or any order of the High Court— (a) requiring a decision to be made, or prohibiting a decision from being made, by a particular relevant decision procedure (other than a creditors’ meeting); (b) permitting or requiring a decision to be made by a creditors’ meeting. (6) Article 208ZF provides that in certain cases the deemed consent procedure may be used instead of a relevant decision procedure. (7) For the purposes of paragraph (3) the “minimum number” of creditors is any of the following— (a) 10% in value of the creditors; (b) 10% in number of the creditors; (c) 10 creditors. (8) The references in paragraph (7) to creditors are to creditors of any class, even where a decision is sought only from creditors of a particular class. (9) In this Article references to a meeting are to a meeting where the creditors are invited to be present together at the same place (whether or not it is possible to attend the meeting without being present at that place). (10) Except as provided by paragraph (8), references in this Article to creditors include creditors of a particular class. (11) In this Order— - “relevant decision procedure” means— in the case of a decision sought only from the creditors of an individual member against whom an insolvency order has been made, creditors’ decision procedure, and in any other case mentioned in paragraph (1), qualifying decision procedure; - “qualifying decision procedure” means a procedure prescribed or authorised under paragraph 8A of Schedule 5; - “creditors’ decision procedure” means a procedure prescribed or authorised under paragraph 9A of Schedule 6. (27ZB) Article 208ZF and Article 345B are modified so as to read as follows— (208ZF) (1) The deemed consent procedure may be used instead of a relevant decision procedure where any of the following are to make a decision about any matter— (a) the creditors of a partnership, (b) the creditors of a corporate member against which an insolvency order has been made, (c) the creditors of an individual member against whom an insolvency order has been made, or (d) the creditors of a partnership and of any insolvent members (together as if they were a single set of creditors), unless paragraph (2) applies. (2) This paragraph applies where— (a) a decision about the matter is required by virtue of this Order, the rules or any other legislation to be made by a relevant decision procedure, or (b) the High Court orders that a decision about the matter is to be made by a relevant decision procedure. (3) If the rules provide for the creditors of a partnership, the creditors of a corporate member against which an insolvency order has been made, the creditors of an individual member against whom an insolvency order has been made or the creditors of a partnership and of any insolvent members to make a decision about the remuneration of any person, they must provide that the decision is to be made by a relevant decision procedure. (4) The deemed consent procedure is that the relevant creditors other than opted-out creditors are given notice of— (a) the matter about which they are to make a decision, (b) the decision that the person giving the notice proposes should be made (the “proposed decision”), (c) the effect of paragraphs (5) and (6), and (d) the procedure for objecting to the proposed decision. (5) If less than the appropriate number of relevant creditors object to the proposed decision in accordance with the procedure set out in the notice, the creditors are to be treated as having made the proposed decision. (6) Otherwise— (a) the creditors are to be treated as not having made a decision about the matter in question, and (b) if a decision about that matter is again sought from the creditors it must be sought using a relevant decision procedure. (7) For the purposes of paragraph (5) the “appropriate number” of relevant creditors is 10% in value of those creditors. (8) “Relevant creditors” means the creditors who, if the decision were to be made by a relevant decision procedure, would be entitled to vote in the procedure. (9) In this Article references to creditors include creditors of a particular class.

62

In paragraph 27A (modification of Article 256A), for “356A” substitute “256A”.

63

• (1) Modified Schedule 2 (set out in paragraph 29) is amended as follows.

• (2) Omit the headings for Parts 1 and 2.

• (3) At the beginning of paragraph 7 of modified Schedule 2, insert “Without prejudice to Article 28 or 30 of the Property (Northern Ireland) Order 1997,”.

Part 5 — Amendments to Schedule 5

64

Schedule 5 to the 1995 Order is amended as follows.

65

• (1) Modified Article 185 is amended as follows.

• (2) In paragraph (3A), for “EC Regulation” (in both places) substitute “EU Regulation”.

• (3) In paragraph (5), omit “and the Companies Order”.

• (4) In paragraph (6)—

• (a) for “62” substitute “63”;

• (b) for “to (4)” substitute “and (3)”.

Part 6 — Amendments to Schedule 6

66

Schedule 6 to the 1995 Order is amended as follows.

67

• (1) Modified Article 185 (set out in paragraph 3 of that Schedule) is amended as follows.

• (2) In paragraph (3A), for “EC Regulation” (in both places) substitute “EU Regulation”.

• (3) In paragraph (5), omit “and the Companies Order”.

• (4) In paragraph (6)—

• (a) for “62” substitute “63”;

• (b) for “to (4)” substitute “and (3)”.

Part 7 — Amendments to Schedule 7

68

• (1) This Part of this Schedule amends Schedule 7 to the 1995 Order, which sets out certain modified provisions of the 1989 Order.

• (2) References in this Part to a numbered paragraph are to that paragraph of Schedule 7 to the 1995 Order, except where otherwise stated.

69

In paragraph 1(2)—

• (a) before “257” insert “256A,”;

• (b) for “265 to 274” substitute “265, 269, 271 to 274”;

• (c) after “285,” insert “286A,”.

70

In modified Article 11(4)(a) (set out in paragraph 2), for “a meeting summoned by the trustee of that estate under Article 304 has been held” substitute “the trustee of that estate has vacated office under Article 271(6)”.

71

For modified Article 239 (set out in paragraph 4) substitute—

(239) (1) A joint bankruptcy petition may be presented to the High Court by virtue of Article 11 of the Insolvent Partnerships Order (Northern Ireland) 1995 only if— (a) the centre of the partnership’s main interests is in Northern Ireland, (b) the centre of the partnership’s main interests is in a member State of the European Union other than Denmark and the partnership has an establishment in Northern Ireland, or (c) the test in paragraph (2) is met. (2) The test is that the partnership has carried on business in Northern Ireland at any time in the period of three years ending with the day on which the petition is presented. (3) The reference in paragraph (2) to the partnership carrying on business includes the carrying on of business by an agent or manager for the partnership. (4) In this Article— (a) references to the centre of the partnership’s main interests have the same meaning as in Article 3 of the EU Regulation; (b) “establishment” has the same meaning as in Article 2(10) of the EU Regulation.

72

• (1) Modified Article 265 (set out in paragraph 10) is amended as follows.

• (2) For paragraph (1) substitute—

(1) This Article applies to any appointment of a person (other than the official receiver) as both trustee of the estates of the members of an insolvent partnership and trustee of the partnership.

• (3) Omit paragraph (5).

• (4) For the heading to paragraph 10 substitute “Article 265: Appointment of trustees: general provision”.

73

Omit paragraphs 11 and 12 (which set out modified Articles 266 and 268).

74

• (1) Modified Article 269 (set out in paragraph 13) is amended as follows.

• (2) In paragraph (3), omit “under Article 268 or”.

• (3) For paragraphs (6) and (7) substitute—

(6) In that notice or advertisement the trustee must explain the procedure for establishing a creditors’ committee under Article 274, except in a case where such a committee has already been formed, in which case the notice or advertisement must state whether the trustee proposes to appoint additional members of the committee under Article 274A(3).

75

Omit paragraph 14 (which sets out modified Article 270).

76

• (1) Modified Article 271 (set out in paragraph 15) is amended as follows.

• (2) At the end of paragraph (1), add “or by a decision of the creditors of the members and of the partnership made by a creditors’ decision procedure instigated specially for that purpose in accordance with the rules.”.

• (3) After paragraph (1) insert—

(1A) Where the official receiver is trustee or a trustee is appointed by the Department or by the High Court, a creditors’ decision procedure may be instigated for the purpose of removing the trustee only if— (a) the trustee thinks fit, (b) the High Court so directs, or (c) one of the creditors of the members or the partnership so requests, with the concurrence of not less than one-quarter, in value, of the creditors (including the creditor making the request). (1B) Where the creditors of the members and the partnership decide to remove a trustee, they may in accordance with the rules appoint another person as trustee in his place. (1C) Where the decision to remove a trustee is made under paragraph (1A), the decision does not take effect until the creditors of the members and the partnership appoint another person as trustee in his place.

• (4) For paragraph (6) substitute—

(6) A trustee who, under Article 304, has produced an account of the winding up of a partnership business and administration of the partnership property, or an account of the administration of a member’s estate, vacates office in relation to the partnership, or that member’s estate, immediately upon complying with the requirements of Article 304(3) in relation to the partnership or (as the case may be) the estate.

77

• (1) Modified Article 272 (set out in paragraph 16) is amended as follows.

• (2) In paragraph (1)(a), for “a combined general meeting of creditors of the members and of the partnership” substitute “the creditors of the members and the partnership”.

• (3) For paragraph (3) substitute—

(3) A person other than the official receiver who has ceased to be the trustee of the estate of any member or of the partnership has his release in accordance with paragraphs (3A) to (3E). (3A) Where the person has died, the person has his release with effect from the time at which notice is given to the High Court in accordance with the rules that the person has ceased to hold office. (3B) Where the person has been removed from office by the High Court or by the Department, the person has his release with effect from such time as the Department may, on an application by the person, determine. (3C) Where the person has vacated office under Article 271(3), the person has his release with effect from such time as the Department may, on an application by the person, determine. (3D) Where the person has resigned— (a) if the person was appointed by the Department, the person has his release with effect from such time as may be directed by the High Court or as the Department may, on an application by the person, determine; (b) if the person was appointed otherwise than by the Department, the person has his release with effect from such time as may be directed by the High Court. (3E) Where the person has vacated office under Article 271(6)— (a) if any of the creditors of the members and of the partnership objected to the person’s release before the end of the period for so objecting prescribed by the rules, the person has his release with effect from such time as the Department may, on an application by that person, determine; (b) otherwise, the person has his release with effect from the time at which the person vacated office.

78

In modified Article 273(5) (set out in paragraph 17), for “holding of a final meeting summoned under Article 304” substitute “vacation of office by the trustee under Article 271(6)”.

79

• (1) Modified Article 274 (set out in paragraph 18) is amended as follows.

• (2) In paragraph (1), for the words from “a combined” to “may” substitute “the creditors of the members and of the partnership may, in accordance with the rules,”.

• (3) In paragraph (2)—

• (a) omit “A combined general meeting of”;

• (b) for “an appointment made by that meeting” substitute “the appointment”.

80

In modified Article 274A(3) (set out in paragraph 18), omit “266(8) or”.

81

In modified Article 300A(6) (set out in paragraph 21), omit “postponed”.

82

• (1) Modified Article 300C (set out in paragraph 21) is amended as follows.

• (2) In paragraph (3), omit “or (as the case may be) in accordance with the Rules”.

• (3) In paragraph (8), for “the Insolvency Regulations (Northern Ireland) 1991 or the Insolvency (Fees) Order (Northern Ireland) 1991” substitute “the Insolvency Regulations (Northern Ireland) 1996 or the Insolvency (Fees) Order (Northern Ireland) 2006”.

83

For paragraph 22 substitute—

(22) Article 304 is modified so as to read as follows— (304) (1) This Article applies where— (a) it appears to the trustee of the estates of the members and of the partnership that the administration of any member's estate or the winding up of the partnership business and administration of the partnership property is for practical purposes complete, and (b) the trustee is not the official receiver; but this is subject to Article 305. (2) The trustee must— (a) give the creditors of the members and of the partnership, other than opted-out creditors, notice that it appears to the trustee that the administration of the member's estate or the winding up of the partnership business and administration of the partnership property is for practical purposes complete, (b) make up an account of the administration or winding up, showing how it has been conducted and the property disposed of, (c) send a copy of the account to the creditors of the members and of the partnership, other than opted-out creditors, and (d) give the creditors of the members and of the partnership, other than opted-out creditors, a notice explaining the effect of Article 272(3E) and how they may object to the trustee's release. (3) The trustee must during the relevant period send to the High Court and, in the case of a corporate member, send to the registrar— (a) a copy of the account, and (b) a statement of whether any of the creditors of the members and of the partnership objected to the trustee's release. (4) The relevant period is the period of 7 days beginning with the day after the last day of the period prescribed by the rules as the period within which the creditors may object to the trustee's release.

Part 8 — Amendments to Schedule 8

84

This Part of this Schedule amends Schedule 8 to the 1995 Order, which sets out modified provisions of the Company Directors Disqualification (Northern Ireland) Order 2002 that apply for the purposes of Article 16 of the 1995 Order.

85

For modified Article 9 substitute—

(9) (1) The High Court must make a disqualification order against a person (“P”) in any case where, on an application under this Article, it is satisfied— (a) that P is or has been an officer of a partnership which has at any time become insolvent (whether while P was an officer or subsequently), and (b) that P’s conduct as an officer of that partnership (either taken alone or taken together with P’s conduct as an officer of one or more relevant entities or relevant overseas entities) makes P unfit to be concerned in the management of a company. (1A) Paragraphs (1B) to (1E) apply for the purposes of paragraph (1). (1B) “Relevant entity” means— (a) any partnership (other than the one mentioned in paragraph (1)(a)); (b) any limited liability partnership; (c) any company. (1C) “Relevant overseas entity” means— (a) any overseas partnership; (b) any overseas limited liability partnership; (c) any overseas company. (1D) “Officer” means— (a) in relation to a partnership or an overseas partnership, an officer; (b) in relation to a limited liability partnership or an overseas limited liability partnership, a member; (c) in relation to a company or an overseas company, a director (including a shadow director). (1E) For those purposes— (a) the reference to P’s conduct as an officer of the partnership mentioned in paragraph (1)(a) includes a reference to P’s conduct in relation to any matter connected with or arising out of the partnership’s insolvency, and (b) the reference to P’s conduct as an officer of any relevant entity or relevant overseas entity includes, where that entity has become insolvent, a reference to P’s conduct in relation to any matter connected with or arising out of the insolvency. (2) Article 9A makes further provision concerning the interpretation of this Article. (3) Under this Article the minimum period of disqualification is 2 years and the maximum period is 15 years. (9A) (1) In Article 9— - “limited liability partnership” means a limited liability partnership formed under the Limited Liability Partnerships Act 2000; - “overseas limited liability partnership” means— an “oversea limited liability partnership” as defined in section 14(3) of the Limited Liability Partnerships Act 2000, or any other entity which is incorporated or otherwise established under the law of a country or territory outside the United Kingdom and is similar in nature to a limited liability partnership; - “overseas partnership” means any entity which is established under the law of a country or territory outside Northern Ireland (whether or not as a legal person under that law) and is similar in nature to a partnership under the law of Northern Ireland. (2) The partnership mentioned in Article 9(1)(a) or a relevant entity becomes insolvent if— (a) a relevant insolvency event occurs in relation to it (see paragraph (4)), (b) it enters administration, or (c) in the case of a limited liability partnership or a company, an administrative receiver is appointed. (3) A relevant overseas entity becomes insolvent if it enters into insolvency proceedings of any description (including interim proceedings) in any jurisdiction. (4) A “relevant insolvency event” occurs— (a) in relation to a partnership, when the High Court— (i) makes an order for the partnership to be wound up at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up, or (ii) makes an order for the business of the partnership to be wound up (without the partnership being wound up as an unregistered company) at a time when the assets of the business are insufficient for the payment of its debts and other liabilities and the expenses of the winding up; (b) in relation to a limited liability partnership, when the High Court makes an order for it to be wound up at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up; (c) in relation to a company, when the company goes into liquidation at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up.

86

For modified Article 10 substitute—

(10) (1) If it appears to the Department that it is expedient in the public interest that a disqualification order under Article 9 should be made against any person, an application for the making of such an order against that person may be made— (a) by the Department, or (b) if the Department so directs in the case of a person who is or has been— (i) an officer of a partnership which is being, or has been, wound up by the High Court, or (ii) an officer of a partnership the business of which is being, or has been, wound up by the High Court (without the partnership being wound up as an unregistered company), by the official receiver. (2) Except with the leave of the High Court, an application for the making under Article 9 of a disqualification order against any person may not be made after the expiration of 3 years from the day on which the partnership of which that person is or has been an officer became insolvent. (3) If it appears to the Department that the conditions mentioned in Article 9(1) are satisfied as respects any person who has offered to give the Department a disqualification undertaking, the Department may accept the undertaking if it appears to the Department that it is expedient in the public interest that the Department should do so (instead of applying, or proceeding with an application, for a disqualification order). (5) The Department or the official receiver may require any person (“A”)— (a) to furnish the Department or, as the case may be, the official receiver with such relevant information, and (b) to produce and permit inspection of such relevant records, as the Department or the official receiver may reasonably require for the purpose of determining whether to exercise, or of exercising, any function under this Article. (5A) In paragraph (5)(a), “relevant information” is information with respect to the conduct of A, or another person, as an officer of the partnership mentioned in Article 9(1)(a) or a relevant entity or relevant overseas entity that has become insolvent. (5B) In paragraph (5)(b), “relevant records” are books, papers and other records that are considered by the Department or (as the case may be) the official receiver to be relevant to the conduct of A, or another person, as an officer of the partnership mentioned in Article 9(1)(a) or a relevant entity or relevant overseas entity that has become insolvent. (5C) For the purposes of paragraphs (5A) and (5B), it does not matter whether the partnership, relevant entity or relevant overseas entity became insolvent while A or (as the case may be) the other person was an officer or subsequently. (6) Article 9(1B) to (1E) and Article 9A(2) to (4) apply for the purposes of this Article as they apply for the purposes of Article 9(1).

87

After modified Article 10 (substituted by paragraph 86 above) insert—

(10A) (1) The office-holder in respect of a partnership which is insolvent must prepare a report (a “conduct report”) about the conduct of each person who was an officer of the partnership— (a) on the insolvency date, or (b) at any time during the period of 3 years ending with that date. (2) For the purposes of this Article a partnership is insolvent if— (a) the partnership is in liquidation and at the time it went into liquidation its assets were insufficient for the payment of its debts and other liabilities and the expenses of the winding up, or (b) the partnership enters administration, and paragraph (1E) of Article 9 applies for the purposes of this Article as it applies for the purposes of Article 9(1). (3) A conduct report must, in relation to each person, describe any conduct of the person which may assist the Department in deciding whether to exercise the power under Article 10(1) or (3) in relation to the person. (4) The office-holder must send the conduct report to the Department before the end of— (a) the period of 3 months beginning with the insolvency date, or (b) such other longer period as the Department considers appropriate in the particular circumstances. (5) If new information comes to the attention of an office-holder, the office-holder must send that information to the Department as soon as reasonably practicable. (6) “New information” is information which an office-holder considers should have been included in a conduct report prepared in relation to the partnership, or would have been so included had it been available before the report was sent. (7) If there is more than one office-holder in respect of a partnership at any particular time (because the partnership is insolvent by virtue of falling within both sub-paragraphs of paragraph (2) at that time), paragraph (1) applies only to the first of the office-holders to be appointed. (9) The “office-holder” in respect of a partnership which is insolvent is— (a) in the case of a partnership being wound up by the High Court, the official receiver; (b) in the case of a partnership in administration, the administrator. (10) The “insolvency date”— (a) in the case of a partnership being wound up by the High Court, means the date on which the Court makes the winding-up order (see Article 105 of the Insolvency (Northern Ireland) Order 1989); (b) in the case of a partnership which has entered administration, means the date the partnership did so.

88

Omit modified Article 11.

89

After modified Article 10A (substituted by paragraph 87 above) insert—

(11A) (1) The High Court may make a disqualification order against a person (“P”) if, on an application under Article 11B, it is satisfied— (a) either— (i) that a disqualification order under Article 9 has been made against a person who is or has been an officer of a partnership, or (ii) that the Department has accepted a disqualification undertaking from such a person under Article 10(3), and (b) that P exercised the requisite amount of influence over the person. That person is referred to in this Article as “the main transgressor”. (2) For the purposes of this Article, P exercised the requisite amount of influence over the main transgressor if any of the conduct— (a) for which the main transgressor is subject to the order made under Article 9, or (b) in relation to which the undertaking was accepted from the main transgressor under Article 10(3), was the result of the main transgressor acting in accordance with P’s directions or instructions. (3) But P does not exercise the requisite amount of influence over the main transgressor by reason only that the main transgressor acts on advice given by P in a professional capacity. (4) Under this Article the minimum period of disqualification is 2 years and the maximum period is 15 years. (11B) (1) If it appears to the Department that it is expedient in the public interest that a disqualification order should be made against a person under Article 11A, the Department may— (a) make an application to the court for such an order, or (b) in a case where an application for an order under Article 9 against the main transgressor has been made by the official receiver, direct the official receiver to make such an application. (2) Except with the leave of the High Court, an application for a disqualification order under Article 11A must not be made after the end of the period of 3 years beginning with the day on which the partnership in question became insolvent (within the meaning given by paragraphs (2) and (4) of Article 9A). (3) Paragraph (5) of Article 10 applies for the purposes of this Article as it applies for the purposes of that Article. (11C) (1) If it appears to the Department that it is expedient in the public interest to do so, the Department may accept a disqualification undertaking from a person (“P”) if— (a) any of the following is the case— (i) a disqualification order under Article 9 has been made against a person who is or has been an officer of a partnership, (ii) the Department has accepted a disqualification undertaking from such a person under Article 10(3), or (iii) it appears to the Department that such an undertaking could be accepted from such a person (if one were offered), and (b) it appears to the Department that P exercised the requisite amount of influence over the person. That person is referred to in this Article as “the main transgressor”. (2) For the purposes of this Article, P exercised the requisite amount of influence over the main transgressor if any of the conduct— (a) for which the main transgressor is subject to the disqualification order made under Article 9, (b) in relation to which the disqualification undertaking was accepted from the main transgressor under Article 10(3), or (c) which led the Department to the conclusion set out in paragraph (1)(a)(iii), was the result of the main transgressor acting in accordance with P’s directions or instructions. (3) But P does not exercise the requisite amount of influence over the main transgressor by reason only that the main transgressor acts on advice given by P in a professional capacity. (4) Paragraph (5) of Article 10 applies for the purposes of this Article as it applies for the purposes of that Article. (12) (1) The High Court may, on the application of a person who is subject to a disqualification undertaking— (a) reduce the period for which the undertaking is to be in force, or (b) provide for it to cease to be in force. (2) On the hearing of an application under paragraph (1), the Department must appear and call the attention of the Court to any matters which seem to the Department to be relevant, and may give evidence or call witnesses.

90

Omit modified Article 13.

91

After modified Article 12 (inserted by paragraph 89 above) insert—

(14) (1) Where the High Court makes a declaration under Article 177 or 178 of the Insolvency (Northern Ireland) Order 1989 that a person is liable to make a contribution to a partnership’s assets, then, whether or not an application for such an order is made by any person, the Court may, if it thinks fit, also make a disqualification order against the person to whom the declaration relates. (2) The maximum period of disqualification under this Article is 15 years. (3) In this Article “partnership” includes overseas partnership within the meaning given by Article 9A(1). (17A) (1) This Article applies where the High Court must determine— (a) whether a person’s conduct as an officer of a partnership (either taken alone or taken together with that person’s conduct as an officer of one or more relevant entities or relevant overseas entities) makes the person unfit to be concerned in the management of a company; (b) where the court is required to make an order under Article 9, what the period of disqualification should be. (2) This Article also applies where the Department must determine— (a) whether a person’s conduct as an officer of a partnership (either taken alone or taken together with that person’s conduct as an officer of one or more relevant entities or relevant overseas entities) makes the person unfit to be concerned in the management of a company; (b) whether to exercise any discretion the Department has to accept a disqualification undertaking under Article 10. (3) In making any such determination in relation to a person, the High Court or the Department must have regard in particular to the matters set out in paragraphs 1 to 7 of Schedule 1. (4) Article 9(1B) to (1E) and Article 9A(1) apply for the purposes of this Article as they apply for the purposes of Article 9(1).

92

After modified Article 19 insert—

(19A) (1) The High Court may make a compensation order against a person on the application of the Department if the Court is satisfied that the conditions mentioned in paragraph (3) are met. (2) If it appears to the Department that the conditions mentioned in paragraph (3) are met in respect of a person who has offered to give the Department a compensation undertaking, the Department may accept the undertaking instead of applying for, or proceeding with an application for, a compensation order. (3) The conditions are that— (a) the person is subject to a disqualification order or disqualification undertaking under this Order, and (b) conduct for which the person is subject to the order or undertaking has caused loss to one or more creditors of an insolvent partnership of which the person has at any time been an officer. (4) An “insolvent partnership” is a partnership that is or has been insolvent; and a partnership becomes insolvent if— (a) the partnership goes into liquidation at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up, or (b) the partnership enters administration. (5) The Department may apply for a compensation order at any time before the end of the period of 2 years beginning with the date on which the disqualification order referred to in paragraph (3)(a) was made, or the disqualification undertaking referred to in that paragraph was accepted. (6) In the case of a person subject to a disqualification order under Article 11A, or a disqualification undertaking under Article 11C, the reference in paragraph (3)(b) to conduct is a reference to the conduct of the main transgressor in relation to which the person has exercised the requisite amount of influence. (19B) (1) A compensation order is an order requiring the person against whom it is made to pay an amount specified in the order— (a) to the Department for the benefit of— (i) a creditor or creditors specified in the order; (ii) a class or classes of creditor so specified; (b) as a contribution to the assets of a partnership so specified. (2) A compensation undertaking is an undertaking to pay an amount specified in the undertaking— (a) to the Department for the benefit of— (i) a creditor or creditors specified in the undertaking; (ii) a class or classes of creditor so specified; (b) as a contribution to the assets of a partnership so specified. (3) When specifying an amount the High Court (in the case of an order) and the Department (in the case of an undertaking) must in particular have regard to— (a) the amount of the loss caused; (b) the nature of the conduct mentioned in Article 19A(3)(b); (c) whether the person has made any other financial contribution in recompense for the conduct (whether under a statutory provision or otherwise). (4) An amount payable by virtue of paragraph (2) under a compensation undertaking is recoverable as if payable under a court order. (5) An amount payable under a compensation order or compensation undertaking is provable as a bankruptcy debt. (20) (1) A person intending to apply for the making of a disqualification order by the High Court must give not less than 10 days’ notice of that person’s intention to the person against whom the order is sought; and on the hearing of the application the last-mentioned person may appear and himself or herself give evidence or call witnesses. (3) On the hearing of an application made by a person falling within paragraph (4) the applicant must appear and call the attention of the High Court to any matters which seem to be relevant, and may give evidence or call witnesses. (4) The following fall within this paragraph— (a) the Department; (b) the official receiver.

93

After modified Article 21 insert—

(22) (1) Where— (a) a disqualification order is made, or (b) any action is taken by a court in consequence of which such an order or a disqualification undertaking is varied or ceases to be in force, or (c) leave is granted by the High Court for a person subject to such an order to do any thing which otherwise the order prohibits the person from doing, or (d) leave is granted by the High Court for a person subject to such an undertaking to do anything which otherwise the undertaking prohibits that person from doing, the clerk of the court must furnish to the Department and to the Secretary of State such particulars as may be prescribed and regulations may prescribe the time within which, and the form and manner in which, such particulars are to be furnished. (2) The Department must, from the particulars so furnished, continue to maintain the register of disqualification orders and of cases in which leave has been granted as mentioned in paragraph (1)(c). (3) The Department must include in the register such particulars as it considers appropriate of— (a) disqualification undertakings accepted by it under Article 10 or 11C; (c) cases in which leave has been granted as mentioned in paragraph (1)(d). (4) When an order or undertaking of which entry is made in the register ceases to be in force, the Department must delete the entry from the register and all particulars relating to it which have been furnished to the Department under this Article or any previous corresponding provision and, in the case of a disqualification undertaking, any other particulars the Department has included in the register. (5) The register must be open to inspection on payment of such fee as may be prescribed. (6) The Department may furnish to the Secretary of State such particulars as the Department considers appropriate of disqualification undertakings accepted by it under Article 10. (7) Regulations under this Article may extend the preceding provisions of this Article, to such extent and with such modifications as may be specified in the regulations, to disqualification orders made and disqualification undertakings accepted under the Company Directors Disqualification Act 1986 as applied by Article 16 of the Insolvent Partnerships Order 1994. (23) (1) In any proceedings (whether or not under this Order), any statement made in pursuance of a requirement imposed by or under Articles 9 to 10A, 11A to 11C, 12, 14 or 19 to 19C or Schedule 1 or by or under rules made for the purposes of this Order under the Insolvency (Northern Ireland) Order 1989, may be used in evidence against any person making or concurring in making the statement. (2) However, in criminal proceedings in which any such person is charged with an offence to which this paragraph applies— (a) no evidence relating to the statement may be adduced, and (b) no question relating to it may be asked, by or on behalf of the prosecution, unless evidence relating to it is adduced, or a question relating to it is asked, in the proceedings by or on behalf of that person. (3) Paragraph (2) applies to any offence other than— (a) an offence which is— (i) created by rules made for the purposes of this Order under the Insolvency (Northern Ireland) Order 1989, and (ii) designated for the purposes of this paragraph by such rules or by regulations; (b) an offence which is— (i) created by regulations made under any such rules, and (ii) designated for the purposes of this paragraph by such regulations; or (c) an offence under Article 10 of the Perjury (Northern Ireland) Order 1979 (false statements made otherwise than on oath). (4) Regulations under paragraph (3)(a)(ii) must after being made be laid before the Assembly. (23A) In proceedings against a person for an offence under Article 18 nothing in this Order is to be taken to require any person to disclose any information that he is entitled to refuse to disclose on grounds of legal professional privilege.

94

For modified Schedule 1 substitute—

Schedule 1 (1) The extent to which the person was responsible for the causes of any material contravention, by the partnership mentioned in Article 9(1)(a), a relevant entity or a relevant overseas entity, of any applicable legislative or other requirement. (2) The extent to which the person was responsible for the causes of the partnership mentioned in Article 9(1)(a) becoming insolvent. (3) Where applicable, the extent to which the person was responsible for the causes of a relevant entity or relevant overseas entity becoming insolvent. (4) The nature and extent of any loss or harm caused, or any potential loss or harm which could have been caused, by the person’s conduct as an officer of the partnership mentioned in Article 9(1)(a), a relevant entity or a relevant overseas entity. (5) Any misfeasance or breach of any fiduciary or other duty by the person in relation to the partnership mentioned in Article 9(1)(a) or a relevant entity or relevant overseas entity. (6) Any material breach of any legislative or other obligation of the person which applies as a result of being an officer of the partnership mentioned in Article 9(1)(a) or a relevant entity or relevant overseas entity. (7) The frequency of conduct of the person which falls within paragraphs 1 to 3, 5 or 6. (8) Article 9(1B) to (1E) and Article 9A(1) to (4) apply for the purposes of this Schedule as they apply for the purposes of Article 9(1).

Part 9 — Amendment to Schedule 10

95

• (1) Schedule 10 to the 1995 Order (subordinate legislation applied by Article 18 to that Order) is amended as follows.

• (2) After the entry referring to the Insolvency (Monetary Limits) Order (Northern Ireland) 1991 insert—

• The Preferential Payments (Monetary Limits) Order (Northern Ireland) 1991