Legalize / United Kingdom / Public General Act

Enterprise Act 2002

Type Public General Act

Publication 2002-11-07

Last updated 2026-04-06

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

As soon as practicable after accepting an undertaking to which paragraph 2 applies or (as the case may be) making an order to which that paragraph applies, the relevant authority shall (except in the case of an order which is a statutory instrument)—

(a) serve a copy of the undertaking on any person by whom it is given or (as the case may be) serve a copy of the order on any person identified in the order as a person on whom a copy of the order should be served; and

(b) publish the undertaking or (as the case may be) the order.

5

(1) The requirements of paragraph 2(4) (and those of paragraph 2(1)) shall not apply if the relevant authority—

(a) has already given notice under paragraph 2(1) but not paragraph 2(4) in relation to the proposed undertaking or order; and

(b) considers that the modifications which are now being proposed are not material in any respect.

(2) The requirements of paragraph 2(4) (and those of paragraph 2(1)) shall not apply if the relevant authority—

(a) has already given notice under paragraphs 2(1) and (4) in relation to the matter concerned; and

(b) considers that the further modifications which are now being proposed do not differ in any material respect from the modifications in relation to which notice was last given under paragraph 2(4).

Termination of undertakings and orders

6

Paragraph 7 applies where the relevant authority is proposing to—

(a) release any undertaking under section 73 or 82 or paragraph 3 or 9 of Schedule 7 (other than in connection with accepting an undertaking under the enactment concerned which varies or supersedes an undertaking under that enactment); or

(b) revoke any order under section 70C, 75, 83 or 84 or paragraph 5, 10 or 11 of Schedule 7 (other than in connection with making an order under the enactment concerned which varies or supersedes an order under that enactment).

7

(1) Before releasing an undertaking to which this paragraph applies or (as the case may be) revoking an order to which this paragraph applies, the relevant authority shall—

(a) give notice of the proposed release or (as the case may be) revocation; and

(b) consider any representations made in accordance with the notice and not withdrawn.

(2) A notice under sub-paragraph (1) shall state—

(a) the fact that a release or (as the case may be) revocation is proposed;

(b) the reasons for it; and

(c) the period (not less than 15 days starting with the date of publication of the notice in the case of an undertaking and not less than 30 days starting with that date in the case of an order) within which representations may be made in relation to the proposed release or (as the case may be) revocation.

(3) If after giving notice under sub-paragraph (1) the relevant authority decides not to proceed with the release or (as the case may be) the revocation, the relevant authority shall give notice of that decision.

(4) A notice under sub-paragraph (1) or (3) shall be given by—

(a) serving a copy of the notice on the person who gave the undertaking which is being released or (as the case may be) on any person identified in the order being revoked as a person on whom a copy of the order should be served; and

(b) publishing the notice.

8

As soon as practicable after releasing the undertaking or making the revoking order, the relevant authority shall (except in the case of an order which is a statutory instrument)—

(a) serve a copy of the release of the undertaking on the person who gave the undertaking or (as the case may be) serve a copy of the revoking order on any person identified in the order being revoked as a person on whom a copy of that order should be served; and

(b) publish the release or (as the case may be) the revoking order.

Power to dispense with the requirements of the Schedule

9

The relevant authority may dispense with any or all of the requirements of this Schedule if the relevant authority considers that the relevant authority has special reasons for doing so.

SCHEDULE 11

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 12

SCHEDULE 13

Part 1 — Directives and Regulations

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 2 — Provisions of directives and Regulations

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 14

SCHEDULE 15

SCHEDULE 16

SCHEDULE 17

General

1

In any instrument made before section 248(1) to (3) of this Act comes into force—

(a) a reference to the making of an administration order shall be treated as including a reference to the appointment of an administrator under paragraph 14 or 22 of Schedule B1 to the Insolvency Act 1986 (c. 45) (inserted by section 248(2) of this Act), and

(b) a reference to making an application for an administration order by petition shall be treated as including a reference to making an administration application under that Schedule, appointing an administrator under paragraph 14 or 22 of that Schedule or giving notice under paragraph 15 or 26 of that Schedule.

Magistrates' Courts Act 1980 (c. 43)

2

In section 87A(1) of the Magistrates’ Court Act 1980 (fine imposed on company) for “section 9 or 124 of the Insolvency Act 1986” substitute “ section 124 of, or paragraph 12 of Schedule B1 to, the Insolvency Act 1986 ”.

Companies Act 1985 (c. 6)

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Insolvency Act 1986 (c. 45)

9

The Insolvency Act 1986 shall be amended as follows.

10

In section 1 (proposal for company voluntary arrangement)—

(a) in subsection (1) for “(other than one for which an administration order is in force, or which is being wound up)” substitute “ (other than one which is in administration or being wound up) ”, and

(b) in subsection (3) for paragraph (a) substitute—

(a) where the company is in administration, by the administrator,

11

In section 5(3) (approval of company voluntary arrangement)—

(a) for “an administration order is in force” substitute “ is in administration ”, and

(b) for “discharge the administration order” substitute “ provide for the appointment of the administrator to cease to have effect ”.

12

In section 6(2)(c) (challenge of decision in relation to company voluntary arrangement) for “an administration order is in force” substitute “ is in administration ”.

13

In section 51 (power to appoint receiver: Scotland) after subsection (2) insert—

(2A) Subsections (1) and (2) are subject to section 72A.

14

At the end of section 100 (creditors’ voluntary winding up of company: appointment of liquidator) add—

(4) The court shall grant an application under subsection (3) made by the holder of a qualifying floating charge in respect of the company’s property (within the meaning of paragraph 14 of Schedule B1) unless the court thinks it right to refuse the application because of the particular circumstances of the case.

15

At the end of section 127 (winding-up: avoidance of property disposition) (which becomes subsection (1)) add—

(2) This section has no effect in respect of anything done by an administrator of a company while a winding-up petition is suspended under paragraph 40 of Schedule B1.

16

After section 129(1) (commencement of winding up) insert—

(1A) Where the court makes a winding-up order by virtue of paragraph 13(1)(e) of Schedule B1, the winding up is deemed to commence on the making of the order.

17

In section 140 (appointment by court of liquidator following administration or voluntary arrangement) for subsection (1) substitute—

(1) Where a winding-up order is made immediately upon the appointment of an administrator ceasing to have effect, the court may appoint as liquidator of the company the person whose appointment as administrator has ceased to have effect.

18

In section 212 (misfeasance of officers)—

(a) in subsection (1)(b) omit “, administrator”,

(b) in subsection (2) omit (in each place) “or administrator”, and

(i) omit “or administrator”, and

(ii) for “that person” substitute “ he ”.

19

Section 230(1) (administrator to be qualified insolvency practitioner) shall cease to have effect.

20

In section 231(1) and (2) (appointment to office of two or more persons) omit the word “administrator,”.

21

In section 232 (validity of office-holder’s act) omit the word “administrator,”.

22

In section 233 (utility supplies)—

(a) for subsection (1)(a) substitute—

(a) the company enters administration,

and

(b) for subsection (4)(a) substitute—

(a) the date on which the company entered administration

23

For section 234(1)(a) (getting in the company’s property) substitute—

(a) the company enters administration,

24

For section 235(4)(a) (co-operation with office-holder) substitute—

(a) the date on which the company entered administration,

25

For section 238(1)(a) (transactions at an undervalue: England and Wales) substitute—

(a) the company enters administration,

26

(1) Section 240 (relevant time for sections 238 and 239) shall be amended as follows.

(2) For subsection (1)(c) substitute—

(c) in either case, at a time between the making of an administration application in respect of the company and the making of an administration order on that application, and (d) in either case, at a time between the filing with the court of a copy of notice of intention to appoint an administrator under paragraph 14 or 22 of Schedule B1 and the making of an appointment under that paragraph.

(3) The word “and” after subsection (1)(b) shall cease to have effect.

(4) For subsection (3)(a), (aa) and (b) substitute—

(a) in a case where section 238 or 239 applies by reason of an administrator of a company being appointed by administration order, the date on which the administration application is made, (b) in a case where section 238 or 239 applies by reason of an administrator of a company being appointed under paragraph 14 or 22 of Schedule B1 following filing with the court of a copy of a notice of intention to appoint under that paragraph, the date on which the copy of the notice is filed, (c) in a case where section 238 or 239 applies by reason of an administrator of a company being appointed otherwise than as mentioned in paragraph (a) or (b), the date on which the appointment takes effect, (d) in a case where section 238 or 239 applies by reason of a company going into liquidation either following conversion of administration into winding up by virtue of Article 37 of the EC Regulation or at the time when the appointment of an administrator ceases to have effect, the date on which the company entered administration (or, if relevant, the date on which the application for the administration order was made or a copy of the notice of intention to appoint was filed), and (e) in a case where section 238 or 239 applies by reason of a company going into liquidation at any other time, the date of the commencement of the winding up.

27

(1) Section 241 (order under section 238 or 239) shall be amended as follows.

(2) For subsection (3A) substitute—

(3A) Where section 238 or 239 applies by reason of a company’s entering administration, a person has notice of the relevant proceedings if he has notice that— (a) an administration application has been made, (b) an administration order has been made, (c) a copy of a notice of intention to appoint an administrator under paragraph 14 or 22 of Schedule B1 has been filed, or (d) notice of the appointment of an administrator has been filed under paragraph 18 or 29 of that Schedule.

(3) For subsection (3B) substitute—

(3B) Where section 238 or 239 applies by reason of a company’s going into liquidation at the time when the appointment of an administrator of the company ceases to have effect, a person has notice of the relevant proceedings if he has notice that— (a) an administration application has been made, (b) an administration order has been made, (c) a copy of a notice of intention to appoint an administrator under paragraph 14 or 22 of Schedule B1 has been filed, (d) notice of the appointment of an administrator has been filed under paragraph 18 or 29 of that Schedule, or (e) the company has gone into liquidation.

28

(1) Section 242 (gratuitous alienations: Scotland) shall be amended as follows.

(2) In subsection (1)(b) for “an administration order is in force in relation to a company” substitute “ a company enters administration ”.

(3) In subsection (3)(a)(ii) for “the administration order is made” substitute “ the company enters administration ”.

29

(1) Section 243 (unfair preferences: Scotland) shall be amended as follows.

(2) In subsection (1) for “the making of an administration order in relation to the company” substitute “ the company enters administration ”.

(3) In subsection (4)(b) for “in the case of an administration order” substitute “ where the company has entered administration ”.

30

In section 244(2) (extortionate credit transaction) for “the day on which the administration order was made or (as the case may be) the company went into liquidation” substitute “ the day on which the company entered administration or went into liquidation ”.

31

(1) Section 245 (avoidance of floating charge) shall be amended as follows.

(2) The word “or” after subsection (3)(b) shall cease to have effect.

(3) For subsection (3)(c) substitute—

(c) in either case, at a time between the making of an administration application in respect of the company and the making of an administration order on that application, or (d) in either case, at a time between the filing with the court of a copy of notice of intention to appoint an administrator under paragraph 14 or 22 of Schedule B1 and the making of an appointment under that paragraph.

(4) For subsection (5)(a) and (b) substitute—

(a) in a case where this section applies by reason of an administrator of a company being appointed by administration order, the date on which the administration application is made, (b) in a case where this section applies by reason of an administrator of a company being appointed under paragraph 14 or 22 of Schedule B1 following filing with the court of a copy of notice of intention to appoint under that paragraph, the date on which the copy of the notice is filed, (c) in a case where this section applies by reason of an administrator of a company being appointed otherwise than as mentioned in paragraph (a) or (b), the date on which the appointment takes effect, and (d) in a case where this section applies by reason of a company going into liquidation, the date of the commencement of the winding up.

32

For section 246(1)(a) (unenforceability of lien on records) substitute—

(a) the company enters administration,

33

(1) Section 247 (meaning of “insolvency” and “go into liquidation”) shall be amended as follows.

(2) In subsection (1) for “the making of an administration order or the appointment of an administrative receiver” substitute “ or the appointment of an administrator or administrative receiver ”.

(3) For subsection (3) substitute—

(3) The reference to a resolution for voluntary winding up in subsection (2) includes a reference to a resolution which is deemed to occur by virtue of— (a) paragraph 83(6)(b) of Schedule B1, or (b) an order made following conversion of administration or a voluntary arrangement into winding up by virtue of Article 37 of the EC Regulation.

34

(1) Section 387 (preferential debts: “the relevant date”) shall be amended as follows.

(2) In subsection (2) for paragraphs (a) and (b) substitute—

(a) if the company is in administration, the date on which it entered administration, and (b) if the company is not in administration, the date on which the voluntary arrangement takes effect.

(3) In subsection (3)—

(a) in paragraphs (a), (aa) and (ab) for “the date of the making of the administration order” substitute “ the date on which the company entered administration ”,

(b) after paragraph (b) insert—

(ba) if the case does not fall within paragraph (a), (aa), (ab) or (b) and the company is being wound up following administration pursuant to paragraph 83 of Schedule B1, the relevant date is the date on which the company entered administration;

and

(4) After subsection (3) insert—

(3A) In relation to a company which is in administration (and to which no other provision of this section applies) the relevant date is the date on which the company enters administration.

35

In section 422 (power to apply first Group of Parts to banks, &c.) for subsection (1) substitute—

(1) The Secretary of State may by order made with the concurrence of the Treasury and after consultation with the Financial Services Authority provide that specified provisions in the first Group of Parts shall apply with specified modifications in relation to any person who— (a) has a liability in respect of a deposit which he accepted in accordance with the Banking Act 1979 (c. 37) or 1987 (c. 22), but (b) does not have permission under Part IV of the Financial Services and Markets Act 2000 (c. 8) (regulated activities) to accept deposits. (1A) Subsection (1)(b) shall be construed in accordance with— (a) section 22 of the Financial Services and Markets Act 2000 (classes of regulated activity and categories of investment), (b) any relevant order under that section, and (c) Schedule 2 to that Act (regulated activities).

36

In section 424(1)(a) (application for order in relation to transaction defrauding creditor) for “in relation to which an administration order is in force” substitute “ is in administration ”.

37

(1) Schedule A1 (moratorium where directors propose voluntary arrangement) shall be amended as follows.

(2) In paragraph 4(1) (exclusion from eligibility for moratorium)—

(a) for paragraph (a) substitute—

(a) the company is in administration,

and

(b) after paragraph (f) (and before the word “or”) insert—

(fa) an administrator appointed under paragraph 22 of Schedule B1 has held office in the period of 12 months ending with the date of filing,

(3) In paragraph 12(1) (effect of moratorium on creditor) for paragraph (d) substitute—

(d) no administration application may be made in respect of the company, (da) no administrator of the company may be appointed under paragraph 14 or 22 of Schedule B1,

(4) In paragraph 40 (challenge of directors’ actions during moratorium) for sub-paragraph (7) substitute—

(7) Sub-paragraph (8) applies where— (a) the appointment of an administrator has effect in relation to the company and the appointment took effect before the moratorium came into force, or (b) the company is being wound up in pursuance of a petition presented before the moratorium came into force. (8) No application for an order under this paragraph may be made by a creditor or member of the company; but such an application may be made instead by the administrator or (as the case may be) the liquidator.

38

(1) Schedule 8 (scope of insolvency rules) shall be amended as follows.

(2) At the end of paragraph 2 (which becomes sub-paragraph (1)) add—

(2) Rules made by virtue of this paragraph about the consequence of failure to comply with practice or procedure may, in particular, include provision about the termination of administration.

(3) In paragraph 10 (provision as to committees) for “section 26, 49, 68, 101, 141 or 142 of this Act” substitute “ section 49, 68, 101, 141 or 142 of, or paragraph 57 of Schedule B1 to, this Act ”.

(4) After paragraph 14 insert—

(14A) Provision about the application of section 176A of this Act which may include, in particular— (a) provision enabling a receiver to institute winding up proceedings; (b) provision requiring a receiver to institute winding up proceedings.

(5) After paragraph 14A (inserted by sub-paragraph (4) above) insert—

(14B) Provision which— (a) applies in relation to administration, with or without modifications, a provision of Parts IV to VII of this Act, or (b) serves a purpose in relation to administration similar to a purpose that may be served by the rules in relation to winding up by virtue of a provision of this Schedule.

(6) In paragraph 29 (general provision) for “section 22, 47, 66, 131, 143(2) or 235 of this Act” substitute “ section 47, 66, 131, 143(2) or 235 of, or paragraph 47 of Schedule B1 to, this Act ”.

39

(1) Schedule 10 (punishment of offences) shall be amended as follows.

(2) After the entries for Schedule A1 insert—

Sch. B1, para. 18(7).	Making false statement in statutory declaration where administrator appointed by holder of floating charge.	1. On indictment. 2. Summary.	2 years, or a fine or both. 6 months, or the statutory maximum or both.	?
Sch. B1, para. 20.	Holder of floating charge failing to notify administrator or others of commencement of appointment.	1. On indictment. 2. Summary.	2 years, or a fine or both. 6 months, or the statutory maximum or both.	One-tenth of the statutory maximum.
Sch. B1, para. 27(4).	Making false statement in statutory declaration where appointment of administrator proposed by company or directors.	1. On indictment. 2. Summary.	2 years, or a fine or both. 6 months, or the statutory maximum or both.	?
Sch. B1, para. 29(7).	Making false statement in statutory declaration where administrator appointed by company or directors.	1. On indictment. 2. Summary.	2 years, or a fine or both. 6 months, or the statutory maximum or both.	?
Sch. B1, para. 32.	Company or directors failing to notify administrator or others of commencement of appointment.	1. On indictment. 2. Summary.	2 years, or a fine or both. 6 months, or the statutory maximum or both.	One-tenth of the statutory maximum.
Sch. B1, para. 45(2).	Administrator, company or officer failing to state in business document that administrator appointed.	Summary.	One-fifth of the statutory maximum.	?
Sch. B1, para. 46(9).	Administrator failing to give notice of his appointment.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
Sch. B1, para. 48(4).	Failing to comply with provisions about statement of affairs where administrator appointed.	1. On indictment. 2. Summary.	A fine. The statutory maximum.	One-tenth of the statutory maximum.
Sch. B1, para. 49(7).	Administrator failing to send out statement of his proposals.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
Sch. B1, para. 51(5).	Administrator failing to arrange initial creditors’ meeting.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
Sch. B1, para. 53(3).	Administrator failing to report decision taken at initial creditors’ meeting.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
Sch. B1, para. 54(7).	Administrator failing to report decision taken at creditors’ meeting summoned to consider revised proposal.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
Sch. B1, para. 56(2).	Administrator failing to summon creditors’ meeting.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
Sch. B1, para. 71(6).	Administrator failing to file court order enabling disposal of charged property.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
Sch. B1, para. 72(5).	Administrator failing to file court order enabling disposal of hire-purchase property.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
Sch. B1, para. 77(3).	Administrator failing to notify Registrar of Companies of automatic end of administration.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
Sch. B1, para. 78(6).	Administrator failing to give notice of extension by consent of term of office.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
Sch. B1, para. 80(6).	Administrator failing to give notice of termination of administration where objective achieved.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
Sch. B1, para. 84(9).	Administrator failing to comply with provisions where company moves to dissolution.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
Sch. B1, para. 86(3).	Administrator failing to notify Registrar of Companies where court terminates administration.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.
Sch. B1, para. 89(3).	Administrator failing to give notice on ceasing to be qualified.	Summary.	One-fifth of the statutory maximum.	One-fiftieth of the statutory maximum.

(3) Omit the entries for the following provisions—

(a) section 12(2),

(b) section 15(8),

(d) section 21(3),

(e) section 22(6),

(f) section 23(3),

(g) section 24(7), and

(h) section 27(6).

Company Directors Disqualification Act 1986 (c. 46)

40

The Company Directors Disqualification Act 1986 shall be amended as follows.

41

In section 6 (duty of court to disqualify unfit director of insolvent company)—

(a) for subsection (2)(b) substitute—

(b) the company enters administration,

(b) for subsection (3)(c) substitute—

(c) where neither paragraph (a) nor (b) applies but an administrator or administrative receiver has at any time been appointed in respect of the company in question, any court which has jurisdiction to wind it up.

and

(b) in a case within paragraph (c) of that subsection, to the appointment of the administrator or (as the case may be) administrative receiver.

42

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Companies Act 1989 (c. 40)

43

The Companies Act 1989 shall be amended as follows.

44

In section 158 (modification of insolvency law)—

(a) in subsection (3) for paragraph (b) substitute—

(b) the application for an administration order or the presentation of a winding-up petition or the passing of a resolution for voluntary winding up,

and

(b) after subsection (3) insert—

(3A) In subsection (3)(b) the reference to an application for an administration order shall be taken to include a reference to— (a) in a case where an administrator is appointed under paragraph 14 or 22 of Schedule B1 to the Insolvency Act 1986 (appointment by floating charge holder, company or directors) following filing with the court of a copy of a notice of intention to appoint under that paragraph, the filing of the copy of the notice, and (b) in a case where an administrator is appointed under either of those paragraphs without a copy of a notice of intention to appoint having been filed with the court, the appointment of the administrator.

45

In section 161(4) (disapplication of enactments to default proceedings) for “sections 10(1)(c), 11(3), 126, 128, 130, 185 or 285 of the Insolvency Act 1986” substitute “ section 126, 128, 130, 185 or 285 of, or paragraph 42 or 43 (including paragraph 43(6) as applied by paragraph 44) of Schedule B1 to, the Insolvency Act 1986 ”.

46

After section 167(1) (application by exchange or clearing house about taking default proceedings) insert—

(1A) In subsection (1) a reference to an administration order shall be taken to include a reference to the appointment of an administrator under— (a) paragraph 14 of Schedule B1 to the Insolvency Act 1986 (c.45) (appointment by holder of qualifying floating charge), or (b) paragraph 22 of that Schedule (appointment by company or directors).

47

(1) Section 175 (financial markets: administration) shall be amended as follows.

(2) For subsection (1) substitute—

(1) The following provisions of Schedule B1 to the Insolvency Act 1986 (administration) do not apply in relation to a market charge— (a) paragraph 43(2) and (3) (restriction on enforcement of security or repossession of goods) (including that provision as applied by paragraph 44 (interim moratorium)), and (b) paragraphs 70, 71 and 72 (power of administrator to deal with charged or hire-purchase property). (1A) Paragraph 41(2) of that Schedule (receiver to vacate office at request of administrator) does not apply to a receiver appointed under a market charge.

(3) In subsection (2) for “an administration order has been made or a petition for an administration order has been presented” substitute “ the occurrence of an event to which subsection (2A) applies ”.

(4) After subsection (2) insert—

(2A) This subsection applies to— (a) making an administration application under paragraph 12 of Schedule B1 to the Insolvency Act 1986, (b) appointing an administrator under paragraph 14 or 22 of that Schedule (appointment by floating charge holder, company or directors), (c) filing with the court a copy of notice of intention to appoint an administrator under either of those paragraphs.

Coal Industry Act 1994 (c. 21)

48

(1) Section 36 of the Coal Industry Act 1994 (insolvency of licensed operator) shall be amended as follows.

(2) After subsection (2) insert—

(2A) Where the administrator of a company which is or has been a licensed operator files a notice with the registrar of companies under paragraph 84(1) of Schedule B1 to the Insolvency Act 1986 (c. 45) (administration: moving to dissolution), he shall at the same time send a copy to the Authority.

(3) In subsection (3)—

(a) after “liquidator” insert “ or administrator ”, and

(b) after “subsection (2)” insert “ or (2A) ”.

Employment Rights Act 1996 (c. 18)

49

(1) The Employment Rights Act 1996 shall be amended as follows.

(2) In section 166(7) (application by employee for payment by Secretary of State)—

(a) in paragraph (a) omit “or an administration order”, and

(b) after paragraph (a) insert—

(aa) if the company is in administration for the purposes of the Insolvency Act 1986,

(3) In section 183(3)(a) (insolvency of employer)—

(a) in paragraph (a) omit “or an administration order”, and

(b) after paragraph (a) insert—

(aa) if the company is in administration for the purposes of the Insolvency Act 1986,

(4) Omit section 189(4) (transfer to Secretary of State of rights and remedies: priority of preferential debts).

Housing Act 1996 (c. 52)

50

The Housing Act 1996 shall be amended as follows.

51

At the end of section 40 (initial notice to be given to Housing Corporation or Housing for Wales) add—

(7) Subsections (8) and (9) apply in relation to the reference in subsection (3) to applying for an administration order. (8) In a case where an administrator is appointed under paragraph 14 or 22 of Schedule B1 to the Insolvency Act 1986 (appointment by floating charge holder, company or directors)— (a) the reference includes a reference to appointing an administrator under that paragraph, and (b) in respect of an appointment under either of those paragraphs the reference to the applicant shall be taken as a reference to the person making the appointment. (9) In a case where a copy of a notice of intention to appoint an administrator under either of those paragraphs is filed with the court— (a) the reference shall be taken to include a reference to the filing of the copy of the notice, and (b) in respect of the filing of a copy of a notice of intention to appoint under either of those paragraphs the reference to the applicant shall be taken as a reference to the person giving the notice.

52

At the end of section 41 (further notice to be given to Housing Corporation or Housing for Wales) add—

(6) In subsection (3)— (a) the reference to the making of an administration order includes a reference to appointing an administrator under paragraph 14 or 22 of Schedule B1 to the Insolvency Act 1986 (administration), and (b) in respect of an appointment under either of those paragraphs the reference to the applicant shall be taken as a reference to the person making the appointment.

Financial Services and Markets Act 2000 (c. 8)

53

The Financial Services and Markets Act 2000 shall be amended as follows.

54

(1) Section 215 (provision of Financial Services Compensation Scheme in relation to insolvency) shall be amended as follows.

(2) In subsection (3) for “presents a petition under section 9 of the 1986 Act or Article 22 of the 1989 Order” substitute “ makes an administration application under Schedule B1 to the 1986 Act or presents a petition under Article 22 of the 1989 Order ”.

(3) After subsection (3) insert—

(3A) In subsection (3) the reference to making an administration application includes a reference to— (a) appointing an administrator under paragraph 14 or 22 of Schedule B1 to the 1986 Act, or (b) filing with the court a copy of notice of intention to appoint an administrator under either of those paragraphs.

55

For section 359 (administration order) substitute—

(359) (1) The Authority may make an administration application under Schedule B1 to the 1986 Act (or present a petition under Article 22 of the 1989 Order) in relation to a company or insolvent partnership which— (a) is or has been an authorised person, (b) is or has been an appointed representative, or (c) is carrying on or has carried on a regulated activity in contravention of the general prohibition. (2) Subsection (3) applies in relation to an administration application made (or a petition presented) by the Authority by virtue of this section. (3) Any of the following shall be treated for the purpose of paragraph 11(a) of Schedule B1 to the 1986 Act (or Article 21(1)(a) of the 1989 Order) as unable to pay its debts— (a) a company or partnership in default on an obligation to pay a sum due and payable under an agreement, and (b) an authorised deposit taker in default on an obligation to pay a sum due and payable in respect of a relevant deposit. (4) In this section— - “agreement” means an agreement the making or performance of which constitutes or is part of a regulated activity carried on by the company or partnership, - “authorised deposit taker” means a person with a Part IV permission to accept deposits (but not a person who has a Part IV permission to accept deposits only for the purpose of carrying on another regulated activity in accordance with that permission), - “company” means a company— 1. in respect of which an administrator may be appointed under Schedule B1 to the 1986 Act, or 2. to which Article 21 of the 1989 Order applies, and - “relevant deposit” shall, ignoring any restriction on the meaning of deposit arising from the identity of the person making the deposit, be construed in accordance with— 1. section 22, 2. any relevant order under that section, and 3. Schedule 2. (5) The definition of “authorised deposit taker” in subsection (4) shall be construed in accordance with— (a) section 22, (b) any relevant order under that section, and (c) Schedule 2.

56

For section 361 (administrator to report to Authority) substitute—

(361) (1) This section applies where a company or partnership is— (a) in administration within the meaning of Schedule B1 to the 1986 Act, or (b) the subject of an administration order under Part III of the 1989 Order. (2) If the administrator thinks that the company or partnership is carrying on or has carried on a regulated activity in contravention of the general prohibition, he must report to the Authority without delay. (3) Subsection (2) does not apply where the administration arises out of an administration order made on an application made or petition presented by the Authority.

57

In section 362 (Financial Services Authority’s right to participate in proceedings)—

(a) in subsection (1) for “presents a petition to the court under section 9 of the 1986 Act (or Article 22 of the 1989 Order)” substitute “ makes an administration application under Schedule B1 to the 1986 Act (or presents a petition under Article 22 of the 1989 Order) ”,

(b) after subsection (1) insert—

(1A) This section also applies in relation to— (a) the appointment under paragraph 14 or 22 of Schedule B1 to the 1986 Act of an administrator of a company of a kind described in subsection (1)(a) to (c), or (b) the filing with the court of a copy of notice of intention to appoint an administrator under either of those paragraphs.

(d) for subsection (4) substitute—

(4) The Authority may apply to the court under paragraph 74 of Schedule B1 to the 1986 Act (or Article 39 of the 1989 Order). (4A) In respect of an application under subsection (4)— (a) paragraph 74(1)(a) and (b) shall have effect as if for the words “harm the interests of the applicant (whether alone or in common with some or all other members or creditors)” there were substituted the words “harm the interests of some or all members or creditors”, and (b) Article 39 of the 1989 Order shall have effect with the omission of the words “(including at least himself”).

and

(e) in subsection (5)(b) for “section 26 of the 1986 Act” substitute “ paragraph 57 of Schedule B1 to the 1986 Act ”.

58

After section 362 insert—

(362A) (1) This section applies in relation to a company of a kind described in section 362(1)(a) to (c). (2) An administrator of the company may not be appointed under paragraph 22 of Schedule B1 to the 1986 Act without the consent of the Authority. (3) Consent under subsection (2)— (a) must be in writing, and (b) must be filed with the court along with the notice of intention to appoint under paragraph 27 of that Schedule. (4) In a case where no notice of intention to appoint is required— (a) subsection (3)(b) shall not apply, but (b) consent under subsection (2) must accompany the notice of appointment filed under paragraph 29 of that Schedule.

59

In section 427A(3) (mergers and divisions of public companies) for “an administration order being in force in relation to the company” substitute “ where the company is in administration ”.

SCHEDULE 18

SCHEDULE 19

Introduction

1

This Schedule applies to an individual who immediately before commencement—

(a) has been adjudged bankrupt, and

(b) has not been discharged from the bankruptcy.

2

In this Schedule—

“commencement” means the date appointed under section 279 for the commencement of section 256, and

“pre-commencement bankrupt” means an individual to whom this Schedule applies.

Neither old law nor new law to apply

3

Section 279 of the Insolvency Act 1986 (c. 45) (bankruptcy: discharge) shall not apply to a pre-commencement bankrupt (whether in its pre-commencement or its post-commencement form).

General rule for discharge from pre-commencement bankruptcy

4

(1) A pre-commencement bankrupt is , subject to sub-paragraphs (2) and (3), discharged from bankruptcy at whichever is the earlier of—

(a) the end of the period of one year beginning with commencement, and

(b) the end of the relevant period applicable to the bankrupt under section 279(1)(b) of the Insolvency Act 1986 (duration of bankruptcy) as it had effect immediately before commencement.

(2) An order made under section 279(3) of that Act before commencement—

(a) shall continue to have effect in respect of the pre-commencement bankrupt after commencement, and

(b) may be varied or revoked after commencement by an order under section 279(3) as substituted by section 256 of this Act.

(3) Section 279(3) to (5) of that Act as substituted by section 256 of this Act shall have effect after commencement in relation to the period mentioned in sub-paragraph (1)(a) or (b) above.

Second-time bankruptcy

5

(1) This paragraph applies to a pre-commencement bankrupt who was an undischarged bankrupt at some time during the period of 15 years ending with the day before the date on which the pre-commencement bankruptcy commenced.

(2) The pre-commencement bankrupt shall not be discharged from bankruptcy in accordance with paragraph 4 above.

(3) An order made before commencement under section 280(2)(b) or (c) of the Insolvency Act 1986 (c. 45) (discharge by order of the court) shall continue to have effect after commencement (including any provision made by the court by virtue of section 280(3)).

(4) A pre-commencement bankrupt to whom this paragraph applies (and in respect of whom no order is in force under section 280(2)(b) or (c) on commencement) is discharged—

(a) at the end of the period of five years beginning with commencement, or

(b) at such earlier time as the court may order on an application under section 280 of the Insolvency Act 1986 (discharge by order) heard after commencement.

(5) Section 279(3) to (5) of the Insolvency Act 1986 as substituted by section 256 of this Act shall have effect after commencement in relation to the period mentioned in sub-paragraph (4)(a) above.

(6) A bankruptcy annulled under section 282 shall be ignored for the purpose of sub-paragraph (1).

Criminal bankruptcy

6

A pre-commencement bankrupt who was adjudged bankrupt on a petition under section 264(1)(d) of the Insolvency Act 1986 (criminal bankruptcy)—

(a) shall not be discharged from bankruptcy in accordance with paragraph 4 above, but

(b) may be discharged from bankruptcy by an order of the court under section 280 of that Act.

Income payments order

7

(1) This paragraph applies where—

(a) a pre-commencement bankrupt is discharged by virtue of paragraph 4(1)(a), and

(b) an income payments order is in force in respect of him immediately before his discharge.

(2) If the income payments order specifies a date after which it is not to have effect, it shall continue in force until that date (and then lapse).

(3) But the court may on the application of the pre-commencement bankrupt—

(a) vary the income payments order;

(b) provide for the income payments order to cease to have effect before the date referred to in sub-paragraph (2).

Bankruptcy restrictions order or undertaking

8

A provision of this Schedule which provides for an individual to be discharged from bankruptcy is subject to—

(a) any bankruptcy restrictions order (or interim order) which may be made in relation to that individual, and

(b) any bankruptcy restrictions undertaking entered into by that individual.

SCHEDULE 20

SCHEDULE 21

Disqualification for acting as receiver or manager

1

The following shall be substituted for section 31 of the Insolvency Act 1986 (c. 45) (receiver and manager: disqualification)—

(31) (1) A person commits an offence if he acts as receiver or manager of the property of a company on behalf of debenture holders while— (a) he is an undischarged bankrupt, or (b) a bankruptcy restrictions order is in force in respect of him. (2) A person guilty of an offence under subsection (1) shall be liable to imprisonment, a fine or both. (3) This section does not apply to a receiver or manager acting under an appointment made by the court.

Bankruptcy offences after discharge

2

After section 350(3) of the Insolvency Act 1986 (c. 45) (bankruptcy offences: general: no liability after discharge) there shall be inserted—

(3A) Subsection (3) is without prejudice to any provision of this Chapter which applies to a person in respect of whom a bankruptcy restrictions order is in force.

3

At the end of section 360 of that Act (obtaining credit and doing business) there shall be inserted—

(5) This section applies to the bankrupt after discharge while a bankruptcy restrictions order is in force in respect of him. (6) For the purposes of subsection (1)(a) as it applies by virtue of subsection (5), the relevant information about the status of the person in question is the information that a bankruptcy restrictions order is in force in respect of him.

Disqualification for acting as insolvency practitioner

4

At the end of section 390 of that Act (disqualification for insolvency practitioner) there shall be added—

(5) A person is not qualified to act as an insolvency practitioner while a bankruptcy restrictions order is in force in respect of him.

Prohibition against involvement in company

5

The following shall be substituted for section 11(1) of the Company Directors Disqualification Act 1986 (c. 46) (bankrupt)—

(1) It is an offence for a person to act as director of a company or directly or indirectly to take part in or be concerned in the promotion, formation or management of a company, without the leave of the court, at a time when— (a) he is an undischarged bankrupt, or (b) a bankruptcy restrictions order is in force in respect of him.

SCHEDULE 22

Annulment of bankruptcy on making of voluntary arrangement

1

The following shall be substituted for section 261 of the Insolvency Act 1986 (effect of voluntary arrangement: undischarged bankrupt)—

(261) (1) This section applies where— (a) the creditors’ meeting summoned under section 257 approves the proposed voluntary arrangement (with or without modifications), and (b) the debtor is an undischarged bankrupt. (2) Where this section applies the court shall annul the bankruptcy order on an application made— (a) by the bankrupt, or (b) where the bankrupt has not made an application within the prescribed period, by the official receiver. (3) An application under subsection (2) may not be made— (a) during the period specified in section 262(3)(a) during which the decision of the creditors’ meeting can be challenged by application under section 262, (b) while an application under that section is pending, or (c) while an appeal in respect of an application under that section is pending or may be brought. (4) Where this section applies the court may give such directions about the conduct of the bankruptcy and the administration of the bankrupt’s estate as it thinks appropriate for facilitating the implementation of the approved voluntary arrangement.

Fast-track for making voluntary arrangement

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Role of official receiver

3

The following shall be inserted after section 389A of that Act (authorisation of nominees and supervisors)—

(389B) (1) The official receiver is authorised to act as nominee or supervisor in relation to a voluntary arrangement approved under Part VIII provided that the debtor is an undischarged bankrupt when the arrangement is proposed. (2) The Secretary of State may by order repeal the proviso in subsection (1). (3) An order under subsection (2)— (a) must be made by statutory instrument, and (b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

SCHEDULE 23

1

The Insolvency Act 1986 (c. 45) shall be amended as follows.

2

Section 275 (bankruptcy: summary administration) shall cease to have effect.

3

In section 280(1) (bankruptcy: discharge by order of court)—

(a) for “section 279(1)(a)” substitute “ section 279(6) ”, and

(b) for “commencement of the bankruptcy” substitute “ date on which the bankruptcy commences ”.

4

In section 282 (annulment of bankruptcy)—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) omit subsection (5) (previous bankruptcy: disregard of annulled bankruptcy).

5

For section 291(4) (co-operation with official receiver) substitute—

(4) The bankrupt shall give the official receiver such inventory of his estate and such other information, and shall attend on the official receiver at such times, as the official receiver may reasonably require— (a) for a purpose of this Chapter, or (b) in connection with the making of a bankruptcy restrictions order.

6

In section 292(1)(a) (trustee in bankruptcy: power to appoint) omit the words “except at a time when a certificate for the summary administration of the bankrupt’s estate is in force,”.

7

In section 293(1) (trustee in bankruptcy: meeting to appoint) omit the words “and no certificate for the summary administration of the bankrupt’s estate has been issued,”.

8

In section 294(1) (power of creditors to requisition meeting) omit the words—

and (b) a certificate for the summary administration of the estate is not for the time being in force,

9

In section 297 (trustee: special cases)—

(a) omit subsections (2) and (3), and

(b) in subsection (4) omit the words “but no certificate for the summary administration of the estate is issued”.

10

Omit section 298(3) (removal of trustee: summary administration).

11

In section 300 (trustee: vacancy)—

(a) omit subsection (5), and

(b) in subsections (6) and (7) omit the words “or (5)”.

12

In section 354(3) (concealment of property) after “the official receiver” insert “ , the trustee ”.

13

At the end of section 355 (concealment and falsification of records) add—

(4) In their application to a trading record subsections (2)(d) and (3)(b) shall have effect as if the reference to 12 months were a reference to two years. (5) In subsection (4) “trading record” means a book, document or record which shows or explains the transactions or financial position of a person’s business, including— (a) a periodic record of cash paid and received, (b) a statement of periodic stock-taking, and (c) except in the case of goods sold by way of retail trade, a record of goods sold and purchased which identifies the buyer and seller or enables them to be identified.

14

In the following provisions of section 399 (appointment of official receiver) for “or winding up” substitute “ , winding up or individual voluntary arrangement ”

(a) subsection (1) (twice), and

(b) subsection (4).

15

In section 429(2)(b) (disability imposed on revoking administration order under County Courts Act 1984) for “not exceeding 2 years” there shall be substituted “ not exceeding one year ”.

16

(1) Schedule 9 (scope of insolvency rules) shall be amended as follows.

(2) After paragraph 8 (registration of voluntary arrangements) insert—

(8A) Provision about the official receiver acting as nominee or supervisor in relation to a voluntary arrangement under Part VIII of this Act, including— (a) provision requiring the official receiver to act in specified circumstances; (b) provision about remuneration; (c) provision prescribing terms or conditions to be treated as forming part of a voluntary arrangement in relation to which the official receiver acts as nominee or supervisor; (d) provision enabling those terms or conditions to be varied or excluded, in specified circumstances or subject to specified conditions, by express provision in an arrangement.

(3) After paragraph 29 (records) insert—

(29A) Provision about bankruptcy restrictions orders, interim orders and undertakings, including— (a) provision about evidence; (b) provision enabling the amalgamation of the register mentioned in paragraph 12 of Schedule 4A with another register; (c) provision enabling inspection of that register by the public.

17

In Schedule 10 (punishment of offences)—

(a) in the entry for section 31 omit “Undischarged”, and

(b) omit the entries for sections 361 and 362.

SCHEDULE 24

Operation of references to OFT before commencement of section 2(3)

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Pensions etc. of former Directors

2

In the case of any such person who has held the office of the Director as may be determined by the Secretary of State with the approval of the Minister for the Civil Service—

(a) such pension, allowance or gratuity shall be paid to or in respect of him on his retirement or death, or

(b) such contributions or payments shall be paid towards provision for such a pension, allowance or gratuity,

as may be so determined.

First financial year of the OFT

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

First annual plan of the OFT

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Last annual report of the Director General of Fair Trading

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Effect of transfers under section 2

6

(1) In this paragraph—

“commencement” means the commencement of section 2(1);

“transferred” means transferred by section 2(1).

(2) Anything which—

(a) has been done by or in relation to the Director for the purposes of or in connection with anything transferred; and

(b) is in effect immediately before commencement,

shall be treated as if done by or in relation to the OFT.

(3) Anything (including legal proceedings) which—

(a) relates to anything transferred; and

(b) is in the process of being done by or in relation to the Director immediately before it is transferred,

may be continued by or in relation to the OFT.

(4) Nothing in section 2 or this paragraph affects the validity of anything done by or in relation to the Director before commencement.

First President and Registrar of the Competition Appeal Tribunal

7

The person who is President of the Competition Commission Appeal Tribunals (under paragraph 4 of Schedule 7 to the 1998 Act) immediately before the commencement of section 12 is on that date to become the President of the Competition Appeal Tribunal as if duly appointed under that section, on the same terms.

8

The person who is Registrar of Appeal Tribunals (under paragraph 5 of Schedule 8 to the 1998 Act) immediately before the commencement of section 12 is on that date to become the Registrar of the Competition Appeal Tribunal as if duly appointed under that section, on the same terms.

9

Any person who is a member of the Competition Commission appeal panel (but not a member of the panel of chairmen) immediately before the commencement of section 12 is on that date to become a member of the Competition Appeal Tribunal, on such terms and for such a period as the Secretary of State may determine.

10

Any member of the Competition Commission appeal panel who is, immediately before the commencement of section 12, a member of the panel of chairmen under paragraph 26 of Schedule 7 to the 1998 Act is on that date to become a chairman of the Competition Appeal Tribunal, on such terms and for such a period as the Lord Chancellor may determine.

11

Nothing in paragraph 7, 8, 9 or 10 applies to any person who, before the commencement of section 12, gives notice to the Secretary of State stating that he does not wish that paragraph to apply to him.

Tribunal rules

12

(1) Any rules made under section 48 of the 1998 Act which are in force immediately before the commencement of section 15 above shall be treated after that commencement as having been made under section 15.

(2) The Secretary of State may treat any consultation carried out with the President of the Competition Commission Appeal Tribunals (before the appointment of the President of the Competition Appeal Tribunal) as being as effective for the purposes of section 15(1) as if it had been carried out with the President of the Competition Appeal Tribunal.

Merger references

13

(1) Subject to paragraphs 15 to 18, the old law shall continue to apply where—

(a) two or more enterprises have ceased to be distinct enterprises (within the meaning of Part 5 of the 1973 Act); and

(b) the cessation has occurred before the appointed day.

(2) Subject to sub-paragraphs (3), (4) and (5) and paragraphs 15 to 18, the old law shall continue to apply in relation to any relevant arrangements which were in progress or in contemplation before the appointed day and are in progress or in contemplation on that day and (if events so require) the actual results of those arrangements where, before the appointed day—

(a) a merger notice was given, and not rejected under section 75B(7) of the 1973 Act or withdrawn, in relation to the arrangements;

(b) no merger notice was so given but, in relation to the arrangements—

(i) a reference was made under section 75 of the 1973 Act;

(ii) undertakings were accepted under section 75G of that Act; or

(iii) a decision was made by the Secretary of State neither to make a reference under section 75 of that Act nor to accept undertakings under section 75G of that Act; or

(c) a merger notice was so given, was rejected under section 75B(7) of the 1973 Act or withdrawn, paragraph (a) does not apply in relation to a different merger notice given in relation to the arrangements and, in relation to the arrangements, paragraph (b)(i), (ii) or (iii) applies.

(3) Subject to sub-paragraph (8), the new law shall, in a case of the kind mentioned in sub-paragraph (2)(a), apply in relation to any relevant arrangements and (if events so require) the actual results of those arrangements if, on or after the appointed day, a merger notice is rejected under section 75B(7) of the 1973 Act or withdrawn in relation to the arrangements.

(4) Subject to sub-paragraph (8), the new law shall, in a case of the kind mentioned in sub-paragraph (2)(a), apply in relation to any relevant arrangements and (if events so require) the actual results of those arrangements if—

(a) the making of a reference under section 64 or 75 of the 1973 Act in relation to those arrangements and (if events so require) the actual results of those arrangements was, immediately before the appointed day and by virtue of section 75C(1)(c), (e) or (g) of that Act, not prevented;

(b) the period for considering the merger notice has expired (whether before, on or after the appointed day); and

(c) no reference has been made under section 64 or 75 of the 1973 Act and no undertakings have been accepted under section 75G of that Act.

(5) Subject to sub-paragraph (8), the new law shall, in a case of the kind mentioned in sub-paragraph (2)(a), apply in relation to any relevant arrangements and (if events so require) the actual results of those arrangements if—

(a) the making of a reference under section 64 or 75 of the 1973 Act in relation to those arrangements and (if events so require) the actual results of those arrangements becomes, on or after the appointed day and by virtue of section 75C(1)(b), (c), (d), (e) or (g) of that Act, not prevented;

(b) the period for considering the merger notice has expired (whether before, on or after the appointed day); and

(c) no reference has been made under section 64 or 75 of the 1973 Act and no undertakings have been accepted under section 75G of that Act.

(6) Subject to sub-paragraph (8), the new law shall apply in relation to relevant arrangements and (if events so require) the actual results of those arrangements if—

(a) the arrangements were in progress or in contemplation before the appointed day and are in progress or in contemplation on that day;

(b) before the appointed day and in relation to the arrangements—

(i) no reference was made under section 75 of the 1973 Act;

(ii) no undertakings were accepted under section 75G of that Act; and

(iii) a decision neither to make a reference under section 75 of that Act nor to accept undertakings under section 75G of that Act was not made by the Secretary of State; and

(7) Subject to sub-paragraph (8), the new law shall, in a case of the kind mentioned in sub-paragraph (2)(c) (excluding the words from “and” to the end), apply in relation to any relevant arrangements and (if events so require) the actual results of those arrangements if, in relation to the arrangements, sub-paragraph (2)(b)(i), (ii) and (iii) do not apply.

(8) Subject to paragraphs 15 to 18, the old law shall continue to apply in relation to concentrations with a Community dimension (within the meaning of the European Merger Regulations) notified before the appointed day to the European Commission under article 4 of those Regulations.

(9) In this paragraph references to relevant arrangements which are in progress or in contemplation on the appointed day include references to the actual results of those arrangements if the arrangements were in progress or in contemplation immediately before the appointed day and have, at the beginning of the appointed day, resulted in two or more enterprises ceasing to be distinct enterprises (within the meaning of Part 5 of the 1973 Act).

(10) In this paragraph—

“the European Merger Regulations” has the meaning given by section 129(1);

“merger notice” means a notice under section 75A(1) of the 1973 Act;

“the new law” means Part 3 of this Act and any related provision of law (including, in particular, any modification made under section 276(2) to that Part or any such provision);

“the old law” means sections 64 to 75K of the 1973 Act and any related provision of law (including, in particular, any modification made under section 276(2) to those sections or any such provision); and

“relevant arrangements” means arrangements which might result in two or more enterprises ceasing to be distinct enterprises (within the meaning of Part 5 of the 1973 Act).

Monopoly references

14

(1) Subject to paragraphs 15 to 18, the old law shall continue to apply in relation to any monopoly reference made before the appointed day under section 50 or 51 of the 1973 Act.

(2) No person has to comply on or after the appointed day with a requirement imposed before that day under section 44 of the 1973 Act.

(3) In this paragraph—

“monopoly reference” has the meaning given by section 5(3) of the 1973 Act; and

“the old law” means Part 4 of the 1973 Act and any related provision of law (including, in particular, any modification made under section 276(2) to that Part or any such provision).

Enforcement undertakings and orders

15

(1) Section 94(1) to (6) shall apply in relation to any undertaking—

(a) accepted (whether before, on or after the appointed day) by a Minister of the Crown—

(i) in pursuance of a proposal under section 56A of the 1973 Act; or

(ii) under section 56F, 75G or 88 of that Act; and

(b) of a description specified in an order made by the Secretary of State under this paragraph;

as it applies in relation to enforcement undertakings under Part 3.

(2) Section 94(1) to (6) shall apply in relation to any order made by a Minister of the Crown under section 56, 73, 74, 75K or 89 of the 1973 Act (whether before, on or after the appointed day) and of a description specified in an order made by the Secretary of State under this paragraph as it applies in relation to enforcement orders under Part 3.

(2A) Subject to sub-paragraph (3), the functions of the CMA under section 94(6) as applied by virtue of sub-paragraph (1) or (2) are to be carried out on its behalf by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013).

(3) Compliance with—

(a) an undertaking accepted by a Minister of the Crown under section 88 of the 1973 Act (whether before, on or after the appointed day) and of a description specified in an order made by the Secretary of State under this paragraph; or

(b) an order made by a Minister of the Crown under section 56, 73, 74 or 89 of the 1973 Act (whether before, on or after the appointed day) and of a description specified in an order made by the Secretary of State under this paragraph;

shall also be enforceable by civil proceedings brought by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 for an injunction or for interdict or for any other appropriate relief or remedy.

(4) Sub-paragraph (3) and section 94(6) as applied by virtue of sub-paragraph (1) or (2) shall not prejudice any right that a person may have by virtue of section 94(4) as so applied to bring civil proceedings for contravention or apprehended contravention of an undertaking or order.

(5) Sections 93 and 93A of the 1973 Act shall accordingly cease to apply in relation to undertakings and orders to which sub-paragraphs (1) to (3) above apply.

16

(1) Sub-paragraph (2) applies to any undertaking—

(a) accepted (whether before, on or after the appointed day) by a Minister of the Crown—

(i) in pursuance of a proposal under section 56A of the 1973 Act; or

(ii) under section 56F, 75G or 88 of that Act; and

(b) of a description specified in an order made by the Secretary of State under this paragraph.

(2) An undertaking to which this sub-paragraph applies may be—

(a) superseded by a new undertaking accepted by the CMA under this paragraph;

(b) varied by an undertaking accepted by the CMA under this paragraph; or

(3) Subject to sub-paragraph (4) and any provision made under section 276(2), the power of the CMA under this paragraph to supersede, vary or release an undertaking is exercisable in the same circumstances, and on the same terms and conditions, as the power of the Minister concerned to supersede, vary or release the undertaking would be exercisable under the 1973 Act.

(4) The duty under section 75J(b) of the 1973 Act to give advice shall be a duty of the CMA to consider what action (if any) it should take.

(5) Where the CMA has the power by virtue of this paragraph to supersede, vary or release an undertaking accepted by a Minister of the Crown—

(a) in pursuance of a proposal under section 56A of the 1973 Act; or

(b) under section 56F, 75G or 88 of that Act;

the Minister concerned shall accordingly cease to have the power under that Act to supersede, vary or release the undertaking.

(6) The functions of the CMA under this paragraph are to be carried out on its behalf—

(a) in the case of an undertaking accepted in pursuance of a proposal under section 56A of the 1973 Act or an undertaking under section 56F or 75G of that Act, by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013), and

(b) in the case of an undertaking accepted under section 88 of that Act, by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013.

17

(1) Any order made by a Minister of the Crown under section 56, 73, 74 or 89 of the 1973 Act (whether before, on or after the appointed day) and of a description specified in an order made by the Secretary of State under this paragraph may be varied or revoked by an order made by the CMA under this paragraph.

(2) Any order made by a Minister of the Crown under section 75K of the 1973 Act (whether before, on or after the appointed day) and of a description specified in an order made by the Secretary of State under this paragraph may be varied or revoked by an order made by the CMA under this paragraph.

(3) Subject to sub-paragraph (4) and any provision made under section 276(2), the power of the CMA to make an order under sub-paragraphs (1) and (2) is exercisable in the same circumstances, and on the same terms and conditions, as the power of the Minister concerned to make a corresponding varying or revoking order under the 1973 Act would be exercisable.

(4) The power of the CMA to make an order under sub-paragraphs (1) and (2) shall not be exercisable by statutory instrument and shall not be subject to the requirements of section 134(1) of the 1973 Act.

(5) Where the CMA has the power by virtue of this paragraph to vary or revoke an order made by a Minister of the Crown under section 56, 73, 74, 75K or 89 of the 1973 Act, the Minister concerned shall accordingly cease to have the power to do so under that Act.

(6) The functions of the CMA under this paragraph are to be carried out on its behalf—

(a) in the case of an order under sub-paragraph (1), by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013, and

(b) in the case of an order under sub-paragraph (2), by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013).

18

(1) Section 94(1) to (6) shall apply in relation to undertakings accepted under paragraph 16 and orders made under paragraph 17 as it applies in relation to enforcement undertakings and enforcement orders under Part 3.

(1A) Subject to sub-paragraph (2), the functions of the CMA under section 94(6) as applied by virtue of sub-paragraph (1) are to be carried out on its behalf by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013).

(2) Compliance with an undertaking accepted by a group constituted by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (“CMA group”) under paragraph 16 or an order made by a CMA group under paragraph 17 shall also be enforceable by civil proceedings brought by a CMA group for an injunction or for interdict or for any other appropriate relief or remedy.

(3) Sub-paragraph (2) and section 94(6) as applied by virtue of sub-paragraph (1) shall not prejudice any right that a person may have by virtue of section 94(4) as so applied to bring civil proceedings for contravention or apprehended contravention of an undertaking or order.

Paragraphs 13 to 18: supplementary provision

19

(1) In paragraphs 13 to 18 “the appointed day” means such day as the Secretary of State may by order made by statutory instrument appoint; and different days may be appointed for different purposes.

(2) An order made by the Secretary of State under paragraph 15, 16 or 17—

(a) may make different provision for different purposes; and

(b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Designation orders under Schedule 4 to the 1998 Act

20

(1) Subject to sub-paragraph (2), the repeals made by section 207 do not affect—

(a) the operation of Schedule 4 to the 1998 Act in relation to any application for designation of a professional rule which is made before the commencement date;

(b) the operation of section 3(1)(d) of and Schedule 4 to the 1998 Act in relation to any designation effected by an order made before the commencement date or on an application mentioned in paragraph (a).

(2) No designation order (whenever made) shall have any effect in relation to any period of time after the end of the transitional period.

(3) Subject to sub-paragraph (2) a designation order may be made after the end of the transitional period on an application mentioned in sub-paragraph (1)(a).

(4) For the purposes of this paragraph—

“commencement date” means the day on which section 207 comes into force;

“designation” means designation under paragraph 2 of Schedule 4 to the 1998 Act; and

“the transitional period” means the period of three months beginning with the commencement date.

Proceedings under Part 3 of the 1973 Act

21

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary

22

Any provision made by any of paragraphs 1 to 21 shall not apply if, and to the extent that, an order under section 276(2) makes alternative provision or provides for it not to apply.

SCHEDULE 25

Registered Designs Act 1949 (c. 88)

1

(1) The Registered Designs Act 1949 is amended as follows.

(2) In section 11A(1) (powers exercisable in consequence of report of Competition Commission), paragraphs (a) and (b) shall cease to have effect.

(3) After section 11A there is inserted—

(11AB) (1) Subsection (2) below applies where— (a) section 41(2), 55(2), 66(6), 75(2), 83(2), 138(2), 147(2) or 160(2) of, or paragraph 5(2) or 10(2) of Schedule 7 to, the Enterprise Act 2002 (powers to take remedial action following merger or market investigations) applies; (b) the Competition Commission or (as the case may be) the Secretary of State considers that it would be appropriate to make an application under this section for the purpose of remedying, mitigating or preventing a matter which cannot be dealt with under the enactment concerned; and (c) the matter concerned involves conditions in licences granted in respect of a registered design by its proprietor restricting the use of the design by the licensee or the right of the proprietor to grant other licences. (2) The Competition Commission or (as the case may be) the Secretary of State may apply to the registrar to take action under this section. (3) Before making an application the Competition Commission or (as the case may be) the Secretary of State shall publish, in such manner as it or he thinks appropriate, a notice describing the nature of the proposed application and shall consider any representations which may be made within 30 days of such publication by persons whose interests appear to it or him to be affected. (4) The registrar may, if it appears to him on an application under this section that the application is made in accordance with this section, by order cancel or modify any condition concerned of the kind mentioned in subsection (1)(c) above. (5) An appeal lies from any order of the registrar under this section. (6) References in this section to the Competition Commission shall, in cases where section 75(2) of the Enterprise Act 2002 applies, be read as references to the Office of Fair Trading. (7) References in section 35, 36, 47, 63, 134 or 141 of the Enterprise Act 2002 (questions to be decided by the Competition Commission in its reports) to taking action under section 41(2), 55, 66, 138 or 147 shall include references to taking action under subsection (2) above. (8) An order made by virtue of this section in consequence of action under subsection (2) above where an enactment mentioned in subsection (1)(a) above applies shall be treated, for the purposes of sections 91(3), 92(1)(a), 162(1) and 166(3) of the Enterprise Act 2002 (duties to register and keep under review enforcement orders etc.), as if it were made under the relevant power in Part 3 or (as the case may be) 4 of that Act to make an enforcement order (within the meaning of the Part concerned).

Agricultural Marketing Act 1958 (c. 47)

2

(1) The Agricultural Marketing Act 1958 is amended as follows.

(2) In section 19A (action following report by Commission)—

(a) for subsection (1) there is substituted—

(1) Subsection (2) applies in any of the following cases. (1A) The first case is where section 138(2) of the Enterprise Act 2002 (duty to remedy adverse effects following market investigation reference) applies and whatever is to be remedied, mitigated or prevented relates to any provision of a scheme or any act or omission of a board administering a scheme. (1B) The second case is where section 147(2) of the Enterprise Act 2002 (power to remedy adverse effects in public interest cases) applies and whatever is to be remedied, mitigated or prevented relates to any provision of a scheme or any act or omission of a board administering a scheme. (1C) The third case is where— (a) a report of the Competition Commission under section 11 of the Competition Act 1980 (c. 21) (references of public bodies etc.), as laid before Parliament, contains conclusions to the effect that— (i) certain matters indicated in the report operate against the public interest, and (ii) those matters consist of or include any provision of a scheme or any act or omission of a board administering a scheme, and (b) none of the conclusions is to be disregarded by virtue of section 11C(3) of that Act (requirement for two-thirds majority).

;

(b) in subsection (2)—

(i) the words from the beginning of the subsection to “this section” shall cease to have effect;

(ii) for the words from “those conclusions” to the end of the subsection there is substituted “ a report of a committee of investigation had contained the conclusion that the provision of the scheme in question, or the act or omission in question, is contrary to the interests of consumers of the regulated product ”;

(3) An order made by virtue of this section in a case mentioned in subsection (1A) or (1B) shall be treated, for the purposes of sections 162(1) and 166(3) of the Enterprise Act 2002 (duties to register and keep under review enforcement orders etc.), as if it were made under the relevant power in Part 4 of that Act to make an enforcement order (within the meaning of that Part).

(3) For the purposes of the Scotland Act 1998 (c. 46) the amendments made by sub-paragraph (2) shall be taken to be pre-commencement enactments within the meaning of that Act.

(4) In section 47(2) (restrictions on disclosing certain information obtained under Act), in paragraph (aa) of the proviso—

(a) for “the Director General of Fair Trading or any of the staff appointed by that Director General” there is substituted “ the Office of Fair Trading ”;

(b) for “the Director General to perform any functions of theirs or his” there is substituted “ the Office of Fair Trading to perform any functions of theirs or its ”;

Public Records Act 1958 (c. 51)

3

(1) The Public Records Act 1958 is amended as follows.

(2) In Part 2 of the Table at the end of paragraph 3 of Schedule 1 (definition of public records)—

(a) the entry relating to the Office of the Director General of Fair Trading shall cease to have effect;

(b) the following entries are inserted at the appropriate places—

Competition Service

Office of Fair Trading.

Superannuation Act 1972 (c. 11)

4

(1) The Superannuation Act 1972 is amended as follows.

(2) In Schedule 1 (kinds of employment in relation to which pension schemes may be made), in the list of “Other Bodies”, there is inserted at the appropriate place—

The Competition Service.

Fair Trading Act 1973 (c. 41)

5

(1) The 1973 Act is amended as follows.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Sections 34 to 42 (additional functions of Director for protection of consumers) shall cease to have effect.

(4) In section 93B (false or misleading information)—

(a) in subsection (1)—

(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) the words “or under the Competition Act 1980” shall cease to have effect;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consumer Credit Act 1974 (c. 39)

6

(1) The Consumer Credit Act 1974 is amended as follows.

(2) In section 1 (general functions of Director)—

(a) in subsection (1)—

(i) for “the Director General of Fair Trading (“the Director”)” there is substituted “ the Office of Fair Trading (“the OFT”) ”;

(ii) for “him” there is substituted “ it ”;

(iii) for “himself” there is substituted “ itself ”;

(b) in subsection (2)—

(i) for “Director” there is substituted “ OFT ”;

(ii) for “him” there is substituted “ it ”;

and in the heading before that section, for “DIRECTOR GENERAL OF FAIR TRADING” there is substituted “ OFFICE OF FAIR TRADING ”.

(3) In section 2 (powers of Secretary of State)—

(a) for “Director” (in each place) there is substituted “ OFT ”;

(b) in subsections (1)(b) and (2), for “his” there is substituted “ its ”;

(4) In section 4 (dissemination of information and advice)—

(a) for “Director” there is substituted “ OFT ”;

(b) for “he”, “him” and “his” there is substituted “ it ”, “ it ” and “ its ” respectively.

(5) In section 6 (form etc. of applications)—

(a) for “Director” (in each place) there is substituted “ OFT ”;

(b) in subsection (3), for “him” there is substituted “ it ”.

(6) In section 7 (penalty for false information), for “Director” (in each place) there is substituted “ OFT ”.

(7) In section 22 (standard and group licences)—

(a) for “Director” (in each place) there is substituted “ OFT ”;

(b) in subsection (1)(b), for “his” and “he” there is substituted “ its ” and “ it ” respectively;

(8) In section 25 (licensee to be a fit person)—

(a) for “Director” (in each place) there is substituted “ OFT ”;

(b) in subsection (2), for “him” there is substituted “ it ”.

(9) In section 27 (determination of applications)—

(a) for “Director” (in each place) there is substituted “ OFT ”;

(b) in subsection (1)—

(i) for “he” (in both places) there is substituted “ it ”;

(ii) in paragraph (a), for “his” there is substituted “ its ”;

(10) In section 28 (exclusion from a group licence)—

(a) for “Director” (in both places) there is substituted “ OFT ”;

(b) for “he” there is substituted “ it ”;

(11) In section 29 (renewal)—

(a) for “Director” (in each place) there is substituted “ OFT ”;

(b) in subsection (2), for “his” there is substituted “ its ”.

(12) In section 30 (variation by request)—

(a) for “Director” and “he” (in each place) there is substituted “ OFT ” and “ it ” respectively;

(b) in subsection (4)(a), for “his” there is substituted “ its ”.

(13) In section 31 (compulsory variation)—

(a) for “Director” (in each place) there is substituted “ OFT ”;

(b) in subsection (1), for “he” (in both places) there is substituted “ it ”;

(d) in subsection (3), for “he”, “his” and “him” there is substituted respectively “ it ”, “ its ” and “ it ” respectively;

(e) in subsection (4)(a), for “his” there is substituted “ its ”.

(14) In section 32 (suspension and revocation)—

(a) for “Director” (in each place) there is substituted “ OFT ”;

(b) in subsection (1), for “he” (in both places) there is substituted “ it ”;

(d) in subsection (3), for “he”, “his” and “him” there is substituted “ it ”, “ its ” and “ it ” respectively;

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.

This text is published under legislation.gov.uk's own terms of reuse, not a Legalize or public-domain licence. legislation.gov.uk
Open Government Licence v3.0 (attribution required)
© Crown and database right. Derived from content available under the Open Government Licence v3.0 from legislation.gov.uk.