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Insolvency (Amendment) Act (Northern Ireland) 2026

Type Act of the Northern Ireland Assembly

Publication 2026-06-24

Last updated 2026-06-30

State In force

Jurisdiction Northern Ireland

Department Government Printer for Northern Ireland

Source legislation.gov.uk

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Regulations that are not subject to negative resolution

14

(1) Article 2 (general interpretation of the 1989 Order) is amended as follows.

(2) In paragraph (2), in the definition of “regulations”, for the words from “(except in” to “Schedule B1)” substitute “(except in the provisions mentioned in paragraph (2B))”.

(3) After paragraph (2A) insert—

(2B) The provisions referred to in the definition of “regulations” in paragraph (2) (which confer power to make regulations that are not subject to negative resolution) are— - Part 1A; - Article 148A(6); - Article 197C; - Article 208ZG; - Article 345C; - Article 359(5); - Article 375(3)(b)(ii); - paragraph 61A of Schedule B1.

(4) In consequence of sub-paragraphs (2) and (3), omit—

(a) paragraph 19 of Schedule 4 to the Youth Justice and Criminal Evidence Act 1999;

(b) sections 9(6) and 18(2) of, and paragraph 3 of Schedule 7 to, the Corporate Insolvency and Governance Act 2020.

Companies in relation to which a voluntary arrangement may be made

15

In Article 14(6) (certain companies in relation to which an arrangement may not be made), for “outside Northern Ireland” substitute “outside the United Kingdom”.

Application for winding up

16

(1) In Article 104 (application for winding up), for paragraph (1) substitute—

(1) An application to the High Court for the winding up of a company may only be made by petition presented by any or all of the persons mentioned in paragraph (1A), together or separately; but this is subject to the following provisions of this Article. (1A) The persons are— (a) the company; (b) the directors; (c) any creditor or creditors (including any contingent or prospective creditor or creditors); (d) any contributory or contributories; (e) the chief clerk or a collection officer in the exercise of the power mentioned in section 35(4A) and (4B) of the Criminal Justice Act (Northern Ireland) 1945 (enforcement of fines imposed on companies); (f) a clerk of petty sessions or a collection officer in the exercise of the power mentioned in Article 92A(1) and (1A) of the Magistrates' Courts (Northern Ireland) Order 1981 (enforcement of fines imposed on companies).

(2) In consequence of sub-paragraph (1), omit—

(a) paragraph 16 of Schedule 2 to the Criminal Justice (Northern Ireland) Order 1994;

(b) regulation 9 of the Insolvency (Northern Ireland) Order 1989 (Amendment No. 2) Regulations (Northern Ireland) 2002.

Holders of office to be qualified insolvency practitioners

17

In Article 194 (holders of office to be qualified insolvency practitioners), in paragraph (2), for “so qualified” substitute “qualified to act as an insolvency practitioner in relation to the company”.

Adjudicators in England and Wales: consequential amendments

18

(1) Article 349 (persons not qualified to act as insolvency practitioners) is amended as follows.

(2) In paragraph (3)(a), after “security” insert “for the proper performance of the practitioner’s functions”.

(3) For paragraph (4)(a) (bankrupts, etc) substitute—

(a) any of the following is the case— (i) the person has been adjudged bankrupt under this Order, (ii) the person has been made bankrupt under the 1986 Act, or (iii) sequestration of the person’s estate has been awarded, and (in each case) the person has not been discharged,

(4) For paragraph (4)(c) (mental capacity, etc) substitute—

(c) he lacks capacity (within the meaning of the Mental Capacity (Northern Ireland) Act 2016) to act as an insolvency practitioner, (d) he is a patient within the meaning of section 329(1) of the Mental Health (Care and Treatment) (Scotland) Act 2003 or has had a guardian appointed to him under the Adults with Incapacity (Scotland) Act 2000 (asp 4), or (e) he lacks capacity (within the meaning of the Mental Capacity Act 2005) to act as an insolvency practitioner.

(5) Until the coming into force of the repeal, by the Mental Capacity (Northern Ireland) Act 2016, of Part 8 of the Mental Health (Northern Ireland) Order 1986, Article 349(4)(c) (as inserted by sub-paragraph (4)) has effect as if it read “he is a patient within the meaning of Part 8 of the Mental Health (Northern Ireland) Order 1986,”.

19

In Article 24 of the Insolvency (Northern Ireland) Order 2005 (power to make orders in relation to disqualification provisions), for paragraph (9)(a) (definition of “bankrupt” in Northern Ireland and England and Wales) substitute—

(a) who has been adjudged bankrupt by the High Court, (aa) who has been made bankrupt in England and Wales (under Part 9 of the Insolvency Act 1986),

20

In Article 15 of the Company Directors Disqualification (Northern Ireland) Order 2002 (undischarged bankrupts), in paragraph (1B)(b) (meaning of “the court” for the purposes of granting leave in England and Wales or Scotland), for paragraph (i) substitute—

(i) the court by which the bankruptcy order was made or (if the order was not made by a court) the court to which a debtor may appeal against a refusal to make a bankruptcy order, or

Removal of reference to repealed provision

21

In Article 362(1)(b) (power to specify amounts for the purposes of certain provisions), omit the reference to Article 332(2)(a).

Penalties and proceedings for certain offences under the 1989 Order

22

In Article 373(4) (disapplication of section 20(2) of the 1954 Act to certain offences under the 1989 Order)—

(a) after “172(1)” insert “and (2)”;

(b) after “174(1)” insert “and (2)”.

23

In Article 374(2) (time limit for summary proceedings)—

(a) omit “84(4)”;

(b) after “172(1)” insert “and (2)”;

24

(1) Schedule 7 (punishment of offences) is amended as follows.

(2) After the entry for Article 172(1) insert—

172(2)	Officer of company accounting for property by fictitious losses or expenses.	1. On indictment. 2. Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.	-

(3) In the entry for Article 174(1), after “affairs” insert “in the course of winding up”.

(4) After the entry for Article 174(1) insert—

174(2)	Officer of company making material omission from statement relating to company’s affairs prior to winding up.	1. On indictment. 2. Summary.	7 years or a fine, or both. 6 months or the statutory maximum, or both.	-

Administration

25

Schedule B1 (administration) is amended as follows.

26

In paragraph 13 (administration application), for sub-paragraph (1)(d) and (e) substitute—

(d) the chief clerk or a collection officer in the exercise of the power mentioned in section 35(4A) and (4B) of the Criminal Justice Act (Northern Ireland) 1945 (enforcement of fines imposed on companies), (e) a clerk of petty sessions or a collection officer in the exercise of the power mentioned in Article 92A(1) and (1A) of the Magistrates' Courts (Northern Ireland) Order 1981 (enforcement of fines imposed on companies), or

27

In paragraph 44(5) (moratorium on other legal process), for “execution” substitute “application to enforce judgment”.

28

In paragraph 65A(1) (administration after moratorium), after “any moratorium” insert “for the company”.

29

Omit—

(a) paragraph 74(2)(d) and the “or” immediately before it;

(b) paragraph 75(6)(ba).

Amendment consequential on Small Business, Enterprise and Employment Act 2015

30

In Schedule 5 (provision that may be included in company insolvency rules), in paragraph 26, for “Article 10(4)” substitute “Article 10A”.

Schedule 4 — Insolvent Partnerships: Amendments to Schedules to the 1995 Order

Part 1 — Amendments to Schedule 1

1

This Part of this Schedule amends Schedule 1 to the 1995 Order, which sets out modified Articles 14 to 20B of the Insolvency (Northern Ireland) Order 1989 (“the 1989 Order”).

Amendments in consequence of repeal of Article 348A by paragraph 15 of Schedule 3 to the Insolvency (Amendment) Act (Northern Ireland) 2016

2

In Part 1 of Schedule 1—

(a) in modified Article 14(2), omit “or authorised to act as nominee,”;

(b) in modified Article 15(5), omit “, or authorised to act as nominee,”;

(d) in modified Article 20(5), omit “or authorised to act as supervisor,”.

Part 2 — Amendments to Schedule 2

11

(1) This Part of this Schedule amends Schedule 2 to the 1995 Order, which sets out modified provisions of Schedules B1 and 1 to the 1989 Order.

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

12

(1) For paragraph 1 substitute—

(1) Paragraphs 2 to 56 set out modified provisions of Schedule B1 to the Order; and paragraph 57 sets out modified Schedule 1 to the Order.

(2) In consequence of the amendment made by sub-paragraph (1)—

(a) before paragraph 2 insert—

; and

(b) before paragraph 57 insert—

13

In modified paragraph 1(1) of Schedule B1 (set out in paragraph 2), omit the definitions of “correspondence” and “creditors’ meeting”.

14

In modified paragraph 14(1) of Schedule B1 (set out in paragraph 8), for “applicable” substitute “application”.

15

After paragraph 12 insert—

(12A) Paragraph 26A is modified to read as follows— (26A) (1) Paragraph 26(a) does not prevent the appointment of an administrator of a partnership if the petition for the winding up of the partnership was presented after the person proposing to make the appointment filed the notice of intention to appoint with the High Court under paragraph 28. (2) But sub-paragraph (1) does not apply if the petition was presented under a provision mentioned in paragraph 43(5).

16

In modified paragraph 41 of Schedule B1 (set out in paragraph 21), omit sub-paragraphs (2) and (3).

17

After paragraph 21 insert—

(21A) Omit paragraph 42.

18

In modified paragraph 43(5)(b) of Schedule B1 (set out in paragraph 22), for “Financial Services Authority” substitute “Financial Conduct Authority or Prudential Regulation Authority”.

19

In modified paragraph 44(5) of Schedule B1 (set out in paragraph 23), after “legal proceedings” insert “, application to enforce judgment”.

20

In modified paragraph 50(4)(b) of Schedule B1 (set out in paragraph 27), after “partnership” insert “, other than an opted-out creditor,”.

21

(1) Modified paragraph 53 of Schedule B1 (set out in paragraph 28) is amended as follows.

(2) In sub-paragraph (2), for the words from “summon” to “requested” substitute “seek a decision from the partnership’s creditors as to whether they approve the proposals set out in the statement made under paragraph 50(1) if requested to do so”.

(3) For sub-paragraph (3) substitute—

(3) Where a decision is sought by virtue of sub-paragraph (2) the initial decision date (as defined in paragraph 52(3)) must be within the prescribed period.

22

In modified paragraph 56 of Schedule B1 (set out in paragraph 29), for sub-paragraph (1) substitute—

(1) This paragraph applies where an administrator— (a) reports to the High Court under paragraph 54 that a partnership’s creditors have failed to approve the administrator’s proposals, or (b) reports to the Court under paragraph 55 that a partnership’s creditors have failed to approve a revision of the administrator’s proposals.

23

(1) Modified paragraph 75 of Schedule B1 (set out in paragraph 36) is amended as follows.

(2) In sub-paragraph (2), for “effectively” substitute “efficiently”.

(3) For sub-paragraph (4)(c) substitute—

(c) require a decision of the partnership’s creditors to be sought on a matter;

24

In modified paragraph 81(4) of Schedule B1 (set out in paragraph 37), after “partnership” insert “, other than an opted-out creditor,”.

25

In modified paragraph 83(1)(b) of Schedule B1 (set out in paragraph 38), for “Financial Services Authority” substitute “Financial Conduct Authority or Prudential Regulation Authority”.

26

In modified paragraph 85(4) of Schedule B1 (set out in paragraph 40), after “creditor” insert “, other than an opted-out creditor,”.

27

In modified paragraph 88(2)(a) of Schedule B1 (set out in paragraph 41), for “or”, in the first place that it occurs, substitute “to”.

28

In modified paragraph 98 of Schedule B1 (set out in paragraph 50), for sub-paragraphs (2) and (3) substitute—

(2) The administrator may be replaced by a decision of the creditors made by a qualifying decision procedure. (3) The decision has effect only if, before the decision is made, the new administrator has consented to act in writing.

29

In modified paragraph 99 of Schedule B1 (set out in paragraph 51), for sub-paragraphs (2) and (3) substitute—

(1A) The discharge provided by sub-paragraph (1) takes effect in accordance with sub-paragraphs (2) to (2C). (2) In the case of an administrator who dies, the discharge takes effect on the filing with the High Court of notice of his or her death. (2A) In the case of an administrator who was appointed under paragraph 23 and who has not made a statement under paragraph 53(1)(b), the discharge takes effect at a time appointed— (a) by resolution of the creditors’ committee, or (b) if there is no such committee, by resolution of the creditors. (2B) In the case of an administrator who was appointed under paragraph 23 and who has made a statement under paragraph 53(1)(b), the discharge takes effect at a time decided by the relevant creditors (as to which, see sub-paragraphs (3) and (3A)). (2C) In any case, the discharge takes effect at such time as may be specified by the Court. (3) For the purposes of sub-paragraph (2B), the “relevant creditors” are the secured creditors of the partnership, unless sub-paragraph (3A) applies. (3A) If the administrator has made a distribution to preferential creditors, or thinks that a distribution may be made to preferential creditors, the “relevant creditors” are— (a) the secured creditors of the partnership, and (b) the preferential creditors of the partnership.

30

(1) Modified paragraph 99 of Schedule B1 (as amended by paragraph 29 above) is further amended as follows.

(2) In sub-paragraph (2A)(b), for “resolution” substitute “decision”.

(3) After sub-paragraph (3A) insert—

(3B) In a case where the administrator is removed from office, a decision of the creditors for the purposes of sub-paragraph (2A)(b), or of the preferential creditors for the purposes of sub-paragraph (2B), must be made by a qualifying decision procedure.

31

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,”;

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”;

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—

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