The Insolvent Partnerships Order 1994

(175) (1) The provisions of this section shall apply in a case where article 8 of the Insolvent Partnerships Order 1994 applies, as regards priority of expenses incurred by responsible insolvency practitioner of an insolvent partnership, and of any insolvent member of that partnership against whom an insolvency order has been made. (2) The joint estate of the partnership shall be applicable in the first instance in payment of the joint expenses and the separate estate of each insolvent member shall be applicable in the first instance in payment of the separate expenses relating to that member. (3) Where the joint estate is insufficient for the payment in full of the joint expenses, the unpaid balance shall be apportioned equally between the separate estates of the insolvent members against whom insolvency orders have been made and shall form part of the expenses to be paid out of those estates. (4) Where any separate estate of an insolvent member is insufficient for the payment in full of the separate expenses to be paid out of that estate, the unpaid balance shall form part of the expenses to be paid out of the joint estate. (5) Where after the transfer of any unpaid balance in accordance with subsection (3 or (4) any estate is insufficient for the payment in full of the expenses to be paid out of that estate, the balance then remaining unpaid shall be apportioned equally between the other estates. (6) Where after an apportionment under subsection (5) one or more estates are insufficient for the payment in full of the expenses to be paid out of those estates, the total of the unpaid balances of the expenses to be paid out of those estates shall continue to be apportioned equally between the other estates until provision is made for the payment in full of the expenses or there is no estate available for the payment of the balance finally remaining unpaid, in which case it abates in equal proportions between all the estates. (7) Without prejudice to subsections (3) to (6) above, the responsible insolvency practitioner may, with the sanction of any creditors' committee established under section 41 or with the leave of the court obtained on application— (a) pay out of the joint estate as part of the expenses to be paid out of that estate any expenses incurred for any separate estate of an insolvent member; or (b) pay out of any separate estate of an insolvent member any part of the expenses incurred for the joint estate which affects that separate estate. (175A) (1) The provisions of this section and the next (which are subject to the provisions of section 9 of the Partnership Act 1890[^f00019] as respects the liability of the estate of a deceased member) shall apply as regards priority of debts in a case where article 8 of the Insolvent Partnerships Order 1994 applies. (2) After payment of expenses in accordance with section 175 and subject to section 175C(2), the joint debts of the partnership shall be paid out of its joint estate in the following order of priority— (a) the ordinary preferential debts; (aa) the secondary preferential debts; (b) the debts which are neither preferential debts nor postponed debts; (c) interest under section 189 on the joint debts (other than postponed debts); (d) the postponed debts; (e) interest under section 189 on the postponed debts. (3) The responsible insolvency practitioner shall adjust the rights among themselves of the members of the partnership as contributories and shall distribute any surplus to the members or, where applicable, to the separate estates of the members, according to their espective rights and interests in it. (4) The debts referred to in each of paragraphs (a), (aa) and (b) of subsection (2) rank equally between themselves, and in each case if the joint estate is insufficient for meeting them, they abate in equal proportions between themselves. (5) Where the joint estate is not sufficient for the payment of the joint debts in accordance with paragraphs (a), (aa) and (b) of subsection (2), the responsible insolvency practitioner shall aggregate the value of those debts to the extent that they have not been satisfied or are not capable of being satisfied, and that aggregate amount shall be a claim against the separate estate of each member of the partnership against whom an insolvency order has been made which— (a) shall be a debt provable by the responsible insolvency practitioner in each such estate, and (b) shall rank equally with the debts of the member referred to in section 175B(1)(b) below. (6) Where the joint estate is sufficient for the payment of the joint debts in accordance with paragraphs (a), (aa) and (b) of subsection (2) but not for the payment of interest under paragraph (c) of that subsection, the responsible insolvency practitioner shall aggregate the value of that interest to the extent that it has not been satisfied or is not capable of being satisfied, and that aggregate amount shall be a claim against the separate estate of each member of the partnership against whom an insolvency order has been made which— (a) shall be a debt provable by the responsible insolvency practitioner in each such estate, and (b) shall rank equally with the interest on the separate debts referred to in section 175B(1)(c) below. (7) Where the joint estate is not sufficient for the payment of the postponed joint debts in accordance with paragraph (d) of subsection (2), the responsible insolvency practitioner shall aggregate the value of those debts to the extent that they have not been satisfied or are not capable of being satisfied, and that aggregate amount shall be a claim against the separate estate of each member of the partnership against whom an insolvency order has been made which— (a) shall be a debt provable by the responsible insolvency practitioner in each such estate, and (b) shall rank equally with the postponed debts of the member referred to in section 175B(1)(d) below. (8) Where the joint estate is sufficient for the payment of the postponed joint debts in accordance with paragraph (d) of subsection (2) but not for the payment of interest under paragraph (e) of that subsection, the responsible insolvency practitioner shall aggregate the value of that interest to the extent that it has not been satisfied or is not capable of being satisfied, and that aggregate amount shall be a claim against the separate estate of each member of the partnership against whom an insolvency order has been made which— (a) shall be a debt provable by the responsible insolvency practitioner in each such estate, and (b) shall rank equally with the interest on the postponed debts referred to in section 175B(1)(e) below. (9) Where the responsible insolvency practitioner receives any distribution from the separate estate of a member in respect of a debt referred to in paragraph (a) of subsection (5), (6), (7) or (8) above, that distribution shall become part of the joint estate and shall be distributed in accordance with the order of priority set out in subsection (2 above. (175B) (1) The separate estate of each member of the partnership against whom an insolvency order has been made shall be applicable, after payment of expenses in accordance with section 175 and subject to section 175C(2) below, in payment of the separate debts of that member in the following order of priority— (a) the ordinary preferential debts; (aa) the secondary preferential debts; (b) the debts which are neither preferential debts nor postponed debts (including any debt referred to in section 175A(5)(a)); (c) interest under section 189 on the separate debts and under section 175A(6); (d) the postponed debts of the member (including any debt referred to in section 17 A(7)(a)); (e) interest under section 189 on the postponed debts of the member and under section 175A(8). (2) The debts referred to in each of paragraphs (a), (aa) and (b) of subsection (1) rank equally between themselves, and in each case if the separate estate is insufficient for meeting them, they abate in equal proportions between themselves. (3) Where the responsible insolvency practitioner receives any distribution from the joint estate or from the separate estate of another member of the partnership against whom an insolvency order has been made, that distribution shall become part of the separate estate and shall be distributed in accordance with the order of priority set out in subsection (1) of this section. (175C) (1) Distinct accounts shall be kept of the joint estate of the partnership and of the separate estate of each member of that partnership against whom an insolvency order is made. (2) No member of the partnership shall prove for a joint or separate debt in competition with the joint creditors, unless the debt has arisen— (a) as a result of fraud, or (b) in the ordinary course of a business carried on separately from the partnership business. (3) For the purpose of establishing the value of any debt referred to in section 175A(5 (a) or (7)(a), that value may be estimated by the responsible insolvency practitioner in accordance with section 322 or (as the case may be) in accordance with the rules. (4) Interest under section 189 on preferential debts ranks equally with interest on debts which are neither preferential debts nor postponed debts. (5) Sections 175A and 175B are without prejudice to any provision of this Act or of any other enactment concerning the ranking between themselves of postponed debts and interest thereon, but in the absence of any such provision postponed debts and interest thereon rank equally between themselves. (6) If any two or more members of an insolvent partnership constitute a separate partnership, the creditors of such separate partnership shall be deemed to be a separate set of creditors and subject to the same statutory provisions as the separate creditors of any member of the insolvent partnership. (7) Where any surplus remains after the administration of the estate of a separate partnership, the surplus shall be distributed to the members or, where applicable, to the seperate estates of the members of that partnership according to their respective rights and interests in it. (8) Neither the official receiver, the Secretary of State nor a responsible insolvency practitioner shall be entitled to remuneration or fees under the Insolvency Rules 1986[^f00020] the Insolvency Regulations 1986[^f00021] or the Insolvency Fees Order 1986[^f00022] for his service in connection with— (a) the transfer of a surplus from the joint estate to a separate estate under section 175A(3), (b) a distribution from a separate estate to the joint estate in respect of a claim referred to in section 175A(5), (6), (7) or (8), or (c) a distribution from the estate of a separate partnership to the separate estate of the members of that partnership under subsection (7) above.

Sections 189 and 328: Interest on debts

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Sections 189 and 328(4) and (5) are modified so as to read as follows—

(189) (1) In the winding up of an insolvent partnership or the winding up or bankruptcy (as the case may be) of any of its insolvent members interest is payable in accordance with this section, in the order of priority laid down by sections 175A and 175B, on any debt proved in the winding up or bankruptcy, including so much of any such debt as represents interest on the remainder. (2) Interest under this section is payable on the debts in question in respect of the periods during which they have been outstanding since the winding-up order was made against the partnership or any corporate member (as the case may be) or the bankruptcy order was made against any individual member. (3) The rate of interest payable under this section in respect of any debt (“the official rate” for the purposes of any provision of this Act in which that expression is used) is whichever is the greater of— (a) the rate specified in section 17 of the Judgments Act 1838[^f00023] on the day on which the winding-up or bankruptcy order (as the case may be) was made, and (b) the rate applicable to that debt apart from the winding up or bankruptcy.

Sections 211 and 356: False representations to creditors

25

Sections 211 and 356(2)(d) are modified so as to read as follows—

(211) (1) This section applies where insolvency orders are made against an insolvent partnership and any insolvent member or members of it by virtue of article 8 of the Insolvent Partnerships Order 1994. (2) Any person, being a past or present officer of the partnership or a past or present officer (which for these purposes includes a shadow director) of a corporate member against which an insolvency order has been made— (a) commits an offence if he makes any false representation or commits any other fraud for the purpose of obtaining the consent of the creditors of the partnership (or any of them) or of the creditors of any of its members (or any of such creditors) to an agreement with reference to the affairs of the partnership or of any of its members or to the winding up of the partnership or of a corporate member, or the bankruptcy of an individual member, and (b) is deemed to have committed that offence if, prior to the winding up or bankruptcy (as the case may be), he has made any false representation, or committed any other fraud, for that purpose. (3) A person guilty of an offence under this section is liable to imprisonment or a fine, or both.

Sections 230, 231 and 292: Appointment to office of responsible insolvency practitioner or provisional liquidator

26

Sections 230, 231 and 292 are modified so as to read as follows—

(230) (1) This section applies with respect to the appointment of— (a) the responsible insolvency practitioner of an insolvent partnership which is being wound up by virtue of article 8 of the Insolvent Partnerships Order 1994 and of one or more of its insolvent members, or (b) a provisional liquidator of an insolvent partnership, or of any of its corporate members, against which a winding-up petition is presented by virtue of that article, but is without prejudice to any enactment under which the official receiver is to be, or may be, responsible insolvency practitioner or provisional liquidator. (2) No person may be appointed as responsible insolvency practitioner unless he is, at the time of the appointment, qualified to act as an insolvency practitioner both in relation to the insolvent partnership and to the insolvent member or members. (3) No person may be appointed as provisional liquidator unless he is, at the time of the appointment, qualified to act as an insolvency practitioner both in relation to the insolvent partnership and to any corporate member in respect of which he is appointed. (4) If the appointment or nomination of any person to the office of responsible insolvency practitioner or provisional liquidator relates to more than one person, or has the effect that the office is to be held by more than one person, then subsection (5) below applies. (5) The appointment or nomination shall declare whether any act required or authorised under any enactment to be done by the responsible insolvency practitioner or by the provisional liquidator is to be done by all or any one or more of the persons for the time being holding the office in question. (6) The appointment of any person as responsible insolvency practitioner takes effect only if that person accepts the appointment in accordance with the rules.Subject to this, the appointment of any person as responsible insolvency practitioner takes effect at the time specified in his certificate of appointment. (230A) (1) If the responsible insolvency practitioner of an insolvent partnership being wound up by virtue of article 8 of the Insolvent Partnerships Order 1994 and of one or more of its insolvent members is of the opinion at any time that there is a conflict of interest between his functions as liquidator of the partnership and his functions as responsible insolvency practitioner of any insolvent member, or between his functions as responsible insolvency practitioner of two or more insolvent members, he may apply to the court for directions. (2) On an application under subsection (1), the court may, without prejudice to the generality of its power to give directions, appoint one or more insolvency practitioners either in place of the applicant to act as responsible insolvency practitioner of both the partnership and its insolvent member or members or to act as joint responsible insolvency practitioner with the applicant.

Section 234: Getting in the partnership property

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Section 234 is modified, so far as insolvent partnerships are concerned, so as to read as follows—

(234) (1) This section applies where— (a) insolvency orders are made by virtue of article 8 of the Insolvent Partnerships Order 1994 in respect of an insolvent partnership and its insolvent member or members, or (b) a provisional liquidator of an insolvent partnership and any of its corporate members is appointed by virtue of that article; and “the office-holder” means the liquidator or the provisional liquidator, as the case may be. (2) Any person who is or has been an officer of the partnership, or who is an executor or administrator of the estate of a deceased officer of the partnership, shall deliver up to the office-holder, for the purposes of the exercise of the office-holder’s functions under this Act and (where applicable) the Company Directors Disqualification Act 1986[^f00024], possession of any partnership property which he holds for the purposes of the partnership. (3) Where any person has in his possession or control any property, books, papers or records to which the partnership appears to be entitled, the court may require that person forthwith (or within such period as the court may direct) to pay, deliver, convey, surrender or transfer the property books, papers or records to the office-holder or as the court may direct. (4) Where the office-holder— (a) seizes or disposes of any property which is not partnership property, and (b) at the time of seizure or disposal believes, and has reasonable grounds for believing, that he is entitled (whether in pursuance of an order of the court or otherwise) to seize or dispose of that property, the next subsection has effect. (5) In that case the office-holder— (a) is not liable to any person in respect of any loss or damage resulting from the seizure or disposal except in so far as that loss or damage is caused by the office-holder’s own negligence, and (b) has a lien on the property, or the proceeds of its sale, for such expenses as were incurred in connection with the seizure or disposal.

Section 283: Definition of individual member’s estate

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Section 283 is modified so as to read as follows—

(283) (1) Subject as follows, the estate of an individual member for the purposes of this Act comprises— (a) all property belonging to or vested in the individual member at the commencement of the bankruptcy, and (b) any property which by virtue of any of the provisions of this Act is comprised in that estate or is treated as falling within the preceding paragraph. (2) Subsection (1) does not apply to— (a) such tools, books, vehicles and other items of equipment as are not partnership property and as are necessary to the individual member for use personally by him in his employment, business or vocation; (b) such clothing, bedding, furniture, household equipment and provisions as are not partnership property and as are necessary for satisfying the basic domestic needs of the individual member and his family. - This subsection is subject to section 308 in Chapter IV (certain excluded property reclaimable by trustee). (3) Subsection (1) does not apply to— (a) property held by the individual member on trust for any other person, or (b) the right of nomination to a vacant ecclesiastical benefice. (4) References in any provision of this Act to property, in relation to an individual member, include references to any power exercisable by him over or in respect of property except in so far as the power is exercisable over or in respect of property not for the time being comprised in the estate of the individual member and— (a) is so exercisable at a time after either the official receiver has had his release in respect of that estate under section 174(3) or a meeting summoned by the trustee of that estate under section 146 has been held, or (b) cannot be so exercised for the benefit of the individual member; and a power exercisable over or in respect of property is deemed for the purposes of any provision of this Act to vest in the person entitled to exercise it at the time of the transaction or event by virtue of which it is exercisable by that person (whether or not it becomes so exercisable at that time). (5) For the purposes of any such provision of this Act, property comprised in an individual member’s estate is so comprised subject to the rights of any person other than the individual member (whether as a secured creditor of the individual member or otherwise in relation thereto, but disregarding any rights which have been given up in accordance with the rules. (6) This section has effect subject to the provisions of any enactment not contained in this Act under which any property is to be excluded from a bankrupt’s estate.

28A

Section 283A: Individual member’s home ceasing to form part of estate

• Section 283A is modified so as to read as follows:—283A1This section applies where property comprised in the estate of an individual member consists of an interest in a dwelling-house which at the date of the bankruptcy was the sole or principal residence of—athe individual member;bthe individual member’s spouse or civil partner, orca former spouse or former civil partner of the individual member.2At the end of the period of three years beginning with the date of the bankruptcy the interest mentioned in subsection (1) shall—acease to be comprised in the individual member’s estate, andbvest in the individual member (without conveyance, assignment or transfer).3Subsection (2) shall not apply if during the period mentioned in that subsection—athe trustee realises the interest mentioned in subsection (1),bthe trustee applies for an order for sale in respect of the dwelling-house,cthe trustee applies for an order for possession of the dwelling-house,dthe trustee applies for an order under section 313 in Chapter IV in respect of that interest, orethe trustee and the individual member agree that the individual member shall incur a specified liability to his estate (with or without the addition of interest from the date of the agreement) in consideration of which the interest mentioned in subsection (1) shall cease to form part of the estate.4Where an application of a kind described in subsection (3)(b) to (d) is made during the period mentioned in subsection (2) and is dismissed, unless the court orders otherwise the interest to which the application relates shall on the dismissal of the application—acease to be comprised in the individual member’s estate, andbvest in the individual member (without conveyance, assignment or transfer).5If the individual member does not inform the trustee or the official receiver of his interest in a property before the end of the period of three months beginning with the date of the bankruptcy, the period of three years mentioned in subsection (2)—ashall not begin with the date of the bankruptcy, butbshall begin with the date on which the trustee or official receiver becomes aware of the individual member’s interest.6The court may substitute for the period of three years mentioned in subsection (2) a longer period—ain prescribed circumstances, andbin such other circumstances as the court thinks appropriate.7The rules may make provision for this section to have effect with the substitution of a shorter period for the period of three years mentioned in subsection (2) in specified circumstances (which may be described by reference to action to be taken by a trustee in bankruptcy).8The rules may also, in particular, make provision—arequiring or enabling the trustee of an individual member’s estate to give notice that this section applies or does not apply;babout the effect of a notice under paragraph (a);crequiring the trustee of an individual member’s estate to make an application to the Chief Land Registrar.9Rules under subsection (8)(b) may, in particular—adisapply this section;benable a court to disapply this section;cmake provision in consequence of a disapplication of this section;denable a court to make provision in consequence of a disapplication of this section;emake provision (which may include provision conferring jurisdiction on a court or tribunal) about compensation..

Section 284: Individual member: Restrictions on dispositions of property

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Section 284 is modified so as to read as follows—

(284) (1) Where an individual member is adjudged bankrupt by virtue of article 8 of the Insolvent Partnerships Order 1994, any disposition of property made by that member in the period to which this section applies is void except to the extent that it is or was made with the consent of the court, or is or was subsequently ratified by the court. (2) Subsection (1) applies to a payment (whether in cash or otherwise) as it applies to a disposition of property and, accordingly, where any payment is void by virtue of that subsection, the person paid shall hold the sum paid for the individual member as part of his estate. (3) This section applies to the period beginning with the day of the presentation of the petition for the bankruptcy order and ending with the vesting, under Chapter IV of his Part, of the individual member’s estate in a trustee. (4) The preceding provisions of this section do not give a remedy against any person— (a) in respect of any property or payment which he received before the commencement of the bankruptcy in good faith, for value and without notice that the petition had been presented, or (b) in respect of any interest in property which derives from an interest in respect of which there is, by virtue of this subsection, no remedy. (5) Where after the commencement of his bankruptcy the individual member has incurred a debt to a banker or other person by reason of the making of a payment which is void under this section, that debt is deemed for the purposes of any provision of this Act to have been incurred before the commencement of the bankruptcy unless— (a) that banker or person had notice of the bankruptcy before the debt was incurred, or (b) it is not reasonably practicable for the amount of the payment to be recovered from the person to whom it was made. (6) A disposition of property is void under this section notwithstanding that the property is not or, as the case may be, would not be comprised in the individual member’s state; but nothing in this section affects any disposition made by a person of property held by him on trust for any other person other than a disposition made by an individual member of property held by him on trust for the partnership.

29A

Section 313A: Low value home: application for sale, possession or charge

• Section 313A is modified so as to read as follows:—313A1This section applies where—aproperty comprised in the individual member’s estate consists of an interest in a dwelling-house which at the date of the bankruptcy was the sole or principal residence of—ithe individual member,iithe individual member’s spouse or civil partner, oriiia former spouse or former civil partner of the individual member, andbthe trustee applies for an order for the sale of the property, for an order for possession of the property or for an order under section 313 in respect of the property.2The court shall dismiss the application if the value of the interest is below the amount prescribed for the purposes of this subsection.3In determining the value of an interest for the purposes of this section the court shall disregard any matter which it is required to disregard by the order which prescribes the amount for the purposes of subsection (2)..

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Schedule 4 is modified so as to read as follows—

SCHEDULE 4 (1) Power to pay any class of creditors in full. (2) Power to make any compromise or arrangement with creditors or persons claiming to be creditors, or having or alleging themselves to have any claim (present or future, certain or contingent, ascertained or sounding only in damages) against the partnership, or whereby the partnership may be rendered liable. (3) Power to compromise, on such terms as may be agreed— (a) all debts and liabilities capable of resulting in debts, and all claims (present or future, certain or contingent, ascertained or sounding only in damages) subsisting or supposed to subsist between the partnership and a contributory or alleged contributory or other debtor or person apprehending liability to the partnership, and (b) all questions in any way relating to or affecting the partnership property or the winding up of the partnership, and take any security for the discharge of any such debt, liability or claim and give a complete discharge in respect of it. (3A) Power to bring legal proceedings under section 213, 214, 238, 239 or 423. (4) Power to bring or defend any action or other legal proceeding in the name and on behalf of any member of the partnership in his capacity as such or of the partnership. (5) Power to carry on the business of the partnership so far as may be necessary for its beneficial winding up. (6) Power to sell any of the partnership property by public auction or private contract, with power to transfer the whole of it to any person or to sell the same in parcels. (7) Power to do all acts and execute, in the name and on behalf of the partnership or of any member of the partnership in his capacity as such, all deeds, receipts and other documents. (8) Power to prove, rank and claim in the bankruptcy, insolvency or sequestration of any contributory for any balance against his estate, and to receive dividends in the bankruptcy, insolvency or sequestration in respect of that balance, as a separate debt due from the bankrupt or insolvent, and rateably with the other separate creditors. (9) Power to draw, accept, make and endorse any bill of exchange or promissory note in the name and on behalf of any member of the partnership in his capacity as such or of the partnership, with the same effect with respect to the liability of the partnership or of any member of the partnership in his capacity as such as if the bill or note had been drawn, accepted, made or endorsed in the course of the partnership’s business. (10) Power to raise on the security of the partnership property any money requisite. (11) Power to take out in his official name letters of administration to any deceased contributory, and to do in his official name any other act necessary for obtaining payment of any money due from a contributory or his estate which cannot conveniently be done in the name of the partnership. In all such cases the money due is deemed, for the purpose of enabling the liquidator to take out the letters of administration or recover the money, to be due to the liquidator himself. (12) Power to appoint an agent to do any business which the liquidator is unable to do himself. (13) Power to do all such other things as may be necessary for winding up the partnership’s affairs and distributing its property.

SCHEDULE 5 — PROVISIONS OF THE ACT WHICH APPLY WITH MODIFICATIONSFOR THE PURPOSES OF ARTICLE 9 TO WINDING UP OF INSOLVENT PARTNERSHIP ON MEMBER'S PETITION WHERE NOCONCURRENT PETITION PRESENTED AGAINST MEMBER

Section 117: High Court and county court jurisdiction

1

Section 117 is modified so as to read as follows—

(117) (1) Subject to subsections (3) and (4) below, the High Court has jurisdiction to wind up any insolvent partnership as an unregistered company by virtue of article 9 of th Insolvent Partnerships Order 1994 if the partnership has, or at any time had, a principal place of business in England and Wales. (2) Subject to subsections (3) and (4) below, a petition for the winding up of an insolvent partnership by virtue of the said article 9 may be presented to a county court in England and Wales if the partnership has, or at any time had, a principal place of business within the insolvency district of that court. (3) Subject to subsection (4) below, the court only has jurisdiction to wind up an insolvent partnership if the business of the partnership has been carried on in England and Wales at any time in the period of 3 years ending with the day on which the petition for winding it up is presented. (4) If an insolvent partnership has a principal place of business situated in Scotland or in Northern Ireland, the court shall not have jurisdiction to wind up the partnership unless it had a principal place of business in England and Wales— (a) in the case of a partnership with a principal place of business in Scotland, at any time in the period of 1 year, or (b) in the case of a partnership with a principal place of business in Northern Ireland at any time in the period of 3 years, ending with the day on which the petition for winding it up is presented. (5) The Lord Chancellor may, with the concurrence of the Lord Chief Justice, by order in a statutory instrument exclude a county court from having winding-up jurisdiction, and for the purposes of that jurisdiction may attach its district, or any part thereof, to any other county court, and may by statutory instrument revoke or vary any such order. - In exercising the powers of this section, the Lord Chancellor shall provide that a county court is not to have winding-up jurisdiction unless it has for the time being jurisdiction for the purposes of Parts VIII to XI of this Act (individual insolvency). (6) Every court in England and Wales having winding-up jurisdiction has for the purposes of that jurisdiction all the powers of the High Court; and every prescribed officer of the court shall perform any duties which an officer of the High Court may discharge by order of a judge of that court or otherwise in relation to winding up. (7) This section is subject to Article 3 of the EC Regulation (jurisdiction under the EC Regulation) (8) The Lord Chief Justice may nominate a judicial office holder (as defined in section 109(4) of the Constitutional Reform Act 2005) to exercise his functions under this section.

Section 221: Winding up of unregistered companies

2

Section 221 is modified so as to read as follows—

(221) (1) Subject to subsections (2) and (3) below and to the provisions of this Part, any insolvent partnership which has, or at any time had, a principal place of busines in England and Wales may be wound up under this Act. (2) Subject to subsection (3) below an insolvent partnership shall not be wound up under this Act if the business of the partnership has not been carried on in England and Wales at any time in the period of 3 years ending with the day on which the winding-up petition is presented. (3) If an insolvent partnership has a principal place of business situated in Scotland or in Northern Ireland, the court shall not have jurisdiction to wind up the partnership unless it had a principal place of business in England and Wales— (a) in the case of a partnership with a principal place of business in Scotland, at any time in the period of 1 year, or (b) in the case of a partnership with a principal place of business in Northern Ireland at any time in the period of 3 years, ending with the day on which the winding-up petition is presented. (3A) The preceding subsections are subject to Article 3 of the EC Regulation (jurisdiction under the EC Regulation). (4) No insolvent partnership shall be wound up under this Act voluntarily. (5) To the extent that they are applicable to the winding up of a company by the court in England and Wales on a member’s petition or on a petition by the company, all the provisions of this Act and the Companies Act about winding up apply to the winding up of an insolvent partnership as an unregistered company— (a) with the exceptions and additions mentioned in the following subsections of this section and in section 221A, and (b) with the modifications specified in Part II of Schedule 3 to the Insolvent Partnerships Order 1994. (6) Sections 73(1), 74(2)(a) to (d) and (3), 75 to 78, 83, 122, 123, 124(2) and (3), 176A, 202, 203, 205 and 250 shall not apply. (7) The circumstances in which an insolvent partnership may be wound up as an unregistered company are as follows— (a) if the partnership is dissolved, or has ceased to carry on business, or is carrying on business only for the purpose of winding up its affairs; (b) if the partnership is unable to pay its debts; (c) if the court is of the opinion that it is just and equitable that the partnership should be wound up. (8) Every petition for the winding up of an insolvent partnership under Part V of this Act shall be verified by affidavit in Form 2 in Schedule 9 to the Insolvent Partnerships Order 1994. (221A) (1) A petition for winding up an insolvent partnership may be presented by any member of the partnership if the partnership consists of not less than 8 members. (2) A petition for winding up an insolvent partnership may also be presented by any member of it with the leave of the court (obtained on his application) if the court is satisfied that— (a) the member has served on the partnership, by leaving at a principal place of bu iness of the partnership in England and Wales, or by delivering to an officer of the par nership, or by otherwise serving in such manner as the court may approve or direct, a wr tten demand in Form 10 in Sched le 9 to the Insolvent Partnerships Order 1994 in respect of a joint debt or debts exceed ng £750 then due from the partnership but paid by the member, other than out of partners ip property; (b) the partnership has for 3 weeks after the service of the demand neglected to pay the sum or to secure or compound for it to the member’s satisfaction; and (c) the member has obtained a judgment, decree or order of any court against the partnership for reimbursement to him of the amount of the joint debt or debts so paid and all reasonable steps (other than insolvency proceedings) have been taken by the member to enforce that judgment, decree or order. (3) Subsection (2)(a) above is deemed included in the list of provisions specified in subsection (1) of section 416 of this Act for the purposes of the Secretary of State’s order-making power under that section.

SCHEDULE 6 — PROVISIONS OF THE ACT WHICH APPLY WITH MODIFICATIONSFOR THE PURPOSES OF ARTICLE 10 TO WINDING UP OF INSOLVENT PARTNERSHIP ON MEMBER'S PETITION WHERE CONCURRENT PETITIONS ARE RESENTED AGAINST ALL THE MEMBERS

Sections 117 and 265: High Court and county court jurisdiction

1

Sections 117 and 265 are modified so as to read as follows—

(117) (1) Subject to the provisions of this section, the High Court has jurisdiction to wind up any insolvent partnership as an unregistered company by virtue of article 10 of the Insolvent Partnerships Order 1994 if the partnership has, or at any time had, a principal place of business in England and Wales. (2) Subject to the provisions of this section, a petition for the winding up of an insolvent partnership by virtue of the said article 10 may be presented to a county court in England and Wales if the partnership has, or at any time had, a principal place of business within the insolvency district of that court. (3) Subject to subsection (4) below, the court only has jurisdiction to wind up an insolvent partnership if the business of the partnership has been carried on in England and Wales at any time in the period of 3 years ending with the day on which the petition for winding it up is presented. (4) If an insolvent partnership has a principal place of business situated in Scotland or in Northern Ireland, the court shall not have jurisdiction to wind up the partnership unless it had a principal place of business in England and Wales— (a) in the case of a partnership with a principal place of business in Scotland, at any time in the period of 1 year, or (b) in the case of a partnership with a principal place of business in Northern Ireland, at any time in the period of 3 years, ending with the day on which the petition for winding it up is presented. (5) Subject to subsection (6) below, the court has jurisdiction to wind up a corporate member, or make a bankruptcy order against an individual member, of a partnership against which a petition has been presented by virtue of article 10 of the Insolvent Partnership Order 1994 if it has jurisdict on in respect of the partnership. (6) Petitions by virtue of the said article 10 for the winding up of an insolvent partnership and the bankruptcy of one or more members of that partnership may not be presented to a district registry of the High Court. (7) The Lord Chancellor may, with the concurrence of the Lord Chief Justice, by order in a statutory instrument exclude a county court from having winding-up jurisdiction, and for the purposes of that jurisdiction may attach its district, or any part thereof, to any other county court, and may by statutory instrument revoke or vary any such order. - In exercising the powers of this section, the Lord Chancellor shall provide that a county court is not to have winding-up jurisdiction unless it has for the time being jurisdiction for the purposes of Parts VIII to XI of this Act (individual insolvency). (8) Every court in England and Wales having winding-up jurisdiction has for the purpose of that jurisdiction all the powers of the High Court; and every prescribed officer of the court shall perform any duties which an officer of the High Court may discharge by order of a judge of that court or otherwise in relation to winding up. (9) This section is subject to Article 3 of the EC Regulation (jurisdiction under the EC Regulation) (10) The Lord Chief Justice may nominate a judicial office holder (as defined in section 109(4) of the Constitutional Reform Act 2005) to exercise his functions under this section

Sections 124, 264 and 272: Applications to wind up insolvent partnership and to wind up or bankrupt insolvent members

2

Sections 124, 264 and 272 are modified so as to read as follows—

(124) (1) An application to the court by a member of an insolvent partnership by virtue of article 10 of the Insolvent Partnerships Order 1994 for the winding up of the partnership as an unregistered company and the winding up or bankruptcy (as the case may be) of all its members shall— (a) in the case of the partnership, be by petition in Form 11 in Schedule 9 to that Order, (b) in the case of a corporate member, be by petition in Form 12 in that Schedule, and (c) in the case of an individual member, be by petition in Form 13 in that Schedule (2) Subject to subsection (3) below, a petition under subsection (1)(a) may only be presented by a member of the partnership on the grounds that the partnership is unable to pay its debts and if— (a) petitions are at the same time presented by that member for insolvency orders against every member of the partnership (including himself or itself); and (b) each member is willing for an insolvency order to be made against him or it and the petition against him or it contains a statement to this effect. (3) If the court is satisfied, on application by any member of an insolvent partnership that presentation of petitions under subsection (1) against the partnership and every member of it would be impracticable, the court may direct that petitions be presented against the partnership and such member or members of it as are specified by the court. (4) The petitions mentioned in subsection (1)— (a) shall all be presented to the same court and, except as the court otherwise permits or directs, on the same day, and (b) except in the case of the petition mentioned in subsection (1)(c) shall be advertised in Form 8 in the said Schedule 9. (5) Each petition presented under this section shall contain particulars of the other petitions being presented in relation to the partnership, identifying the partnership and members concerned. (6) The hearing of the petition against the partnership fixed by the court shall be in advance of the hearing of the petitions against the insolvent members. (7) On the day appointed for the hearing of the petition against the partnership, the petitioner shall, before the commencement of the hearing, hand to the court Form 9 in Schedule 9 to the Insolvent Partnerships Order 1994, duly completed. (8) Any person against whom a winding-up or bankruptcy petition has been presented in relation to the insolvent partnership is entitled to appear and to be heard on any petition for the winding up of the partnership. (9) A petitioner under this section may at the hearing withdraw the petition if— (a) subject to subsection (10) below, he withdraws at the same time every other petition which he has presented under this section; and (b) he gives notice to the court at least 3 days before the date appointed for the hearing of the relevant petition of his intention to withdraw the petition. (10) A petitioner need not comply with the provisions of subsection (9)(a) in the case of a petition against a member, if the court is satisfied on application made to it by the petitioner that, because of difficulties in serving the petition or for any other reason, the continuance of that petition would be likely to prejudice or delay the proceedings on the petition which he has presented against the partnership or on any petition which he has presented against any other insolvent member.

Sections 125 and 271: Powers of court on hearing of petitions against insolvent partnership and members

3

Sections 125 and 271 are modified so as to read as follows—

(125) (1) Subject to the provisions of section 125A, on hearing a petition under section 124 against an insolvent partnership or any of its insolvent members, the court may dismiss it, or adjourn the hearing conditionally or unconditionally or make any other order that it thinks fit; but the court shall not refuse to make a winding-up order against the partnership or a corporate member on the ground only that the partnership property or (as the case may be) the member’s assets have been mortgaged to an amount equal to or in excess of that property or those assets, or that the partnership has no property or the member no assets. (2) An order under subsection (1) in respect of an insolvent partnership may contain directions as to the future conduct of any insolvency proceedings in existence against any insolvent member in respect of whom an insolvency order has been made. (125A) (1) On the hearing of a petition against an insolvent member the petitioner shall draw the court’s attention to the result of the hearing of the winding-up petition against the partnership and the following subsections of this section shall apply. (2) If the court has neither made a winding-up order, nor dismissed the winding-up petition, against the partnership the court may adjourn the hearing of the petition against the member until either event has occurred. (3) Subject to subsection (4) below, if a winding-up order has been made against the partnership, the court may make a winding-up order against the corporate member in respect of which, or (as the case may be) a bankruptcy order against the individual member in respect of whom, the insolvency petition was presented. (4) If no insolvency order is made under subsection (3) against any member within 28 days of the making of the winding-up order against the partnership, the proceedings against the partnership shall be conducted as if the winding-up petition against the partnership had been presented by virtue of article 7 of the Insolvent Partnerships Order 1994, and the proceedings against any member shall be conducted under this Act without the modifications made by that Order (other than the modifications made to sections 168 and 303 by article 14). (5) If the court has dismissed the winding-up petition against the partnership, the court may dismiss the winding-up petition against the corporate member or (as the case may be) the bankruptcy petition against the individual member.However, if an insolvency order is made against a member, the proceedings against that member shall be conducted under this Act without the modification made by the Insolvent Partnerships Order 1994 (other than the modifications made to sections 168 and 303 of this Act by article 14 of that Order). (6) The court may dismiss a petition against an insolvent member if it considers it just to do so because of a change in circumstances since the making of the winding-up order against the partnership. (7) The court may dismiss a petition against an insolvent member who is a limited partner, if— (a) the member lodges in court for the benefit of the creditors of the partnership sufficient money or security to the court’s satisfaction to meet his liability for the debts and obligations of the partnership; or (b) the member satisfies the court that he is no longer under any liability in respect of the debts and obligations of the partnership.

Section 221: Winding up of unregistered companies

4

Section 221 is modified so as to read as follows—

(221) (1) Subject to subsections (2) and (3) below and to the provisions of this Part, any insolvent partnership which has, or at any time had, a principal place of business in England and Wales may be wound up under this Act. (2) Subject to subsection (3) below, an insolvent partnership shall not be wound up under this Act if the business of the partnership has not been carried on in England and Wales at any time in the period of 3 years ending with the day on which the winding-up petition is presented. (3) If an insolvent partnership has a principal place of business situated in Scotland or in Northern Ireland, the court shall not have jurisdiction to wind up the partnership unless it had a principal place of business in England and Wales— (a) in the case of a partnership with a principal place of business in Scotland, at any time in the period of 1 year, or (b) in the case of a partnership with a principal place of business in Northern Ireland, at any time in the period of 3 years, ending with the day on which the winding-up petition is presented. (3A) The preceding subsections are subject to Article 3 of the EC Regulation (jurisdiction under the EC Regulation). (4) No insolvent partnership shall be wound up under this Act voluntarily. (5) To the extent that they are applicable to the winding up of a company by the court in England and Wales on a member’s petition, all the provisions of this Act and the Companies Act about winding up apply to the winding up of an insolvent partnership as an unregistered company— (a) with the exceptions and additions mentioned in the following subsections of this section, and (b) with the modifications specified in Part II of Schedule 4 to the Insolvent Partnerships Order 1994. (6) Sections 73(1), 74(2)(a) to (d) and (3), 75 to 78, 83, 124(2) and (3), 154, 176A, 202, 203, 205 and 250 shall not apply. (7) Unless the contrary intention appears, the members of the partnership against whom insolvency orders are made by virtue of article 10 of the Insolvent Partnerships Order 1994 shall not be treated as contributories for the purposes of this Act. (8) The circumstances in which an insolvent partnership may be wound up as an unregistered company are that the partnership is unable to pay its debts. (9) Every petition for the winding up of an insolvent partnership under Part V of this Act shall be verified by affidavit in Form 2 in Schedule 9 to the Insolvent Partnerships Order 1994.

SCHEDULE 7 — PROVISIONS OF THE ACT WHICH APPLY WITH MODIFICATIONS FOR THE PURPOSES OF ARTICLE 11 WHERE JOINT BANKRUPTCY PETITION PRESENTED BY INDIVIDUAL MEMBERS WITHOUT WINDING UP PARTNERSHIP AS UNREGISTERED COMPANY

1

• (1) The provisions of the Act specified in sub-paragraph (2) below, are set out as modified in this Schedule.

• (2) The provisions referred to in sub-paragraph (1) above are sections 264 to 266, 272, ... 283, 284, 290, 292 to 301, 305, 312, 328, 331 and 387.

Section 264: Presentation of joint bankruptcy petition

2

Section 264 is modified so as to read as follows—

(264) (1) Subject to section 266(1) below, a joint bankruptcy petition may be presented to the court by virtue of article 11 of the Insolvent Partnerships Order 1994 by all the members of an insolvent partnership in their capacity as such provided that all the members are individuals and none of them is a limited partner. (2) A petition may not be presented under paragraph (1) by the members of an insolvent partnership if the partnership— (a) has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, other than such a permission only for the purpose of carrying on another regulated activity in accordance with that permission, or (b) continues to have a liability in respect of a deposit which was held by it in accordance with the Banking Act 1979 or the Banking Act 1987. (2A) Subsection (2)(a) must be read with— (a) section 22 of the Financial Services and Markets Act 2000; (b) any relevant order under that section; and (c) Schedule 2 to that Act. (3) The petition— (a) shall be in Form 14 in Schedule 9 to the Insolvent Partnerships Order 1994; and (b) shall contain a request that the trustee shall wind up the partnership business and administer the partnership property without the partnership being wound up as an unregistered company under Part V of this Act. (4) The petition shall either— (a) be accompanied by an affidavit in Form 15 in Schedule 9 to the Insolvent Partnerships Order 1994 made by the member who signs the petition, showing that all the members are individual members (and that none of them is a limited partner) and concur in the presentation of the petition, or (b) contain a statement that all the members are individual members and be signed by all the members. (5) On presentation of a petition under this section, the court may make orders in Form 16 in Schedule 9 to the Insolvent Partnerships Order 1994 for the bankruptcy of the members and the winding up of the partnership business and administration of its property.

Section 265: Conditions to be satisfied in respect of members

3

Section 265 is modified so as to read as follows—

(265) (1) Subject to the provisions of this section, a joint bankruptcy petition by virtue of article 11 of the Insolvent Partnerships Order 1994 may be presented— (a) to the High Court (other than to a district registry of that Court) if the partnership has, or at any time had, a principal place of business in England and Wales, or (b) to a county court in England and Wales if the partnership has, or at any time had, a principal place of business within the insolvency district of that court. (2) A joint bankruptcy petition shall not be presented to the court by virtue of article 11 unless the business of the partnership has been carried on in England and Wales at any time in the period of 3 years ending with the day on which the joint bankruptcy petition is presented.

Section 266: Other preliminary conditions

4

Section 266 is modified so as to read as follows—

(266) (1) If the court is satisfied, on application by any member of an insolvent partnership, that the presentation of the petition under section 264(1) by all the members of the partnership would be impracticable, the court may direct that the petition be presented by such member or members as are specified by the court. (2) A joint bankruptcy petition shall not be withdrawn without the leave of the court. (3) The court has a general power, if it appears to it appropriate to do so on the grounds that there has been a contravention of the rules or for any other reason, to dismiss joint bankruptcy petition or to stay proceedings on such a petition; and, where it stay proceedings on a petition, it may do so on such terms and conditions as it thinks fit.

Section 272: Grounds of joint bankruptcy petition

5

Section 272 is modified so as to read as follows—

(272) (1) A joint bankruptcy petition may be presented to the court by the members of a partnership only on the grounds that the partnership is unable to pay its debts. (2) The petition shall be accompanied by— (a) a statement of each member’s affairs in Form 17 in Schedule 9 to the Insolvent Partnerships Order 1994, and (b) a statement of the affairs of the partnership in Form 18 in that Schedule, sworn by one or more members of the partnership. (3) The statements of affairs required by subsection (2) shall contain— (a) particulars of the member’s or (as the case may be) partnership’s creditors, debts and other liabilities and of their assets, and (b) such other information as is required by the relevant form.

Section 275: Summary Administration

6

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Section 283: Definition of member’s estate

7

Section 283 is modified so as to read as follows—

(283) (1) Subject as follows, a member’s estate for the purposes of this Act comprises— (a) all property belonging to or vested in the member at the commencement of the bankruptcy, and (b) any property which by virtue of any of the provisions of this Act is comprised in that estate or is treated as falling within the preceding paragraph. (2) Subsection (1) does not apply to— (a) such tools, books, vehicles and other items of equipment as are not partnership property and as are necessary to the member for use personally by him in his employment, business or vocation; (b) such clothing, bedding, furniture, household equipment and provisions as are not partnership property and as are necessary for satisfying the basic domestic needs of the member and his family. - This subsection is subject to section 308 in Chapter IV (certain excluded property reclaimable by trustee). (3) Subsection (1) does not apply to— (a) property held by the member on trust for any other person, or (b) the right of nomination to a vacant ecclesiastical benefice. (4) References in any provision of this Act to property, in relation to a member, include references to any power exercisable by him over or in respect of property except insofar as the power is exercisable over or in respect of property not for the time being comprised in the member’s estate and— (a) is so exercisable at a time after either the official receiver has had his release in respect of that estate under section 299(2) in Chapter III or a meeting summoned by the trustee of that estate under section 331 in Chapter IV has been held, or (b) cannot be so exercised for the benefit of the member; and a power exercisable over or in respect of property is deemed for the purposes of any provision of this Act to vest in the person entitled to exercise it at the time of the transaction or event by virtue of which it is exercisable by that person (whether or not it becomes so exercisable at that time). (5) For the purposes of any such provision of this Act, property comprised in a member' estate is so comprised subject to the rights of any person other than the member (whether as a secured creditor of the member or otherwise) in relation thereto, but disregarding any rights which have been given up in accordance with the rules. (6) This section has effect subject to the provisions of any enactment not contained in this Act under which any property is to be excluded from a bankrupt’s estate.

7A

Section 283A: Bankrupt’s home ceasing to form part of estate

• Section 283A is modified so as to read as follows:—283A1This section applies where property comprised in the estate of an individual member consists of an interest in a dwelling-house which at the date of the bankruptcy was the sole or principal residence of—athe individual member;bthe individual member’s spouse or civil partner, orca former spouse or former civil partner of the individual member.2At the end of the period of three years beginning with the date of the bankruptcy the interest mentioned in subsection (1) shall—acease to be comprised in the individual member’s estate, andbvest in the individual member (without conveyance, assignment or transfer).3Subsection (2) shall not apply if during the period mentioned in that subsection—athe trustee realises the interest mentioned in subsection (1),bthe trustee applies for an order for sale in respect of the dwelling-house,cthe trustee applies for an order for possession of the dwelling-house,dthe trustee applies for an order under section 313 in Chapter IV in respect of that interest, orethe trustee and the individual member agree that the individual member shall incur a specified liability to his estate (with or without the addition of interest from the date of the agreement) in consideration of which the interest mentioned in subsection (1) shall cease to form part of the estate.4Where an application of a kind described in subsection (3)(b) to (d) is made during the period mentioned in subsection (2) and is dismissed, unless the court orders otherwise the interest to which the application relates shall on the dismissal of the application—acease to be comprised in the individual member’s estate, andbvest in the individual member (without conveyance, assignment or transfer).5If the individual member does not inform the trustee or the official receiver of his interest in a property before the end of the period of three months beginning with the date of the bankruptcy, the period of three years mentioned in subsection (2)—ashall not begin with the date of the bankruptcy, butbshall begin with the date on which the trustee or official receiver becomes aware of the individual member’s interest.6The court may substitute for the period of three years mentioned in subsection (2) a longer period—ain prescribed circumstances, andbin such other circumstances as the court thinks appropriate.7The rules may make provision for this section to have effect with the substitution of a shorter period for the period of three years mentioned in subsection (2) in specified circumstances (which may be described by reference to action to be taken by a trustee in bankruptcy).8The rules may also, in particular, make provision—arequiring or enabling the trustee of an individual member’s estate to give notice that this section applies or does not apply;babout the effect of a notice under paragraph (a);crequiring the trustee of an individual member’s estate to make an application to the Chief Land Registrar.9Rules under subsection (8)(b) may, in particular—adisapply this section;benable a court to disapply this section;cmake provision in consequence of a disapplication of this section;denable a court to make provision in consequence of a disapplication of this section;emake provision (which may include provision conferring jurisdiction on a court or tribunal) about compensation..

Section 284: Restrictions on dispositions of property

8

Section 284 is modified so as to read as follows—

(284) (1) Where a member is adjudged bankrupt on a joint bankruptcy petition, any disposition of property made by that member in the period to which this section applies is void except to the extent that it is or was made with the consent of the court, or is or was subsequently ratified by the court. (2) Subsection (1) applies to a payment (whether in cash or otherwise) as it applies to a disposition of property and, accordingly, where any payment is void by virtue of that subsection, the person paid shall hold the sum paid for the member as part of his estate. (3) This section applies to the period beginning with the day of the presentation of the joint bankruptcy petition and ending with the vesting, under Chapter IV of this Part, of the member’s estate in a trustee. (4) The preceding provisions of this section do not give a remedy against any person— (a) in respect of any property or payment which he received before the commencement of the bankruptcy in good faith, for value, and without notice that the petition had been presented, or (b) in respect of any interest in property which derives from an interest in respect of which there is, by virtue of this subsection, no remedy. (5) Where after the commencement of his bankruptcy the member has incurred a debt to a banker or other person by reason of the making of a payment which is void under this section, that debt is deemed for the purposes of any provision of this Act to have been incurred before the commencement of the bankruptcy unless— (a) that banker or person had notice of the bankruptcy before the debt was incurred or (b) it is not reasonably practicable for the amount of the payment to be recovered from the person to whom it was made. (6) A disposition of property is void under this section notwithstanding that the property is not or, as the case may be, would not be comprised in the member’s estate; but nothing in this section affects any disposition made by a person of property held by him on trust for any other person other than a disposition made by a member of property held by him on trust for the partnership.

Section 290: Public examination of member

9

Section 290 is modified so as to read as follows—

(290) (1) Where orders have been made against the members of an insolvent partnership of a joint bankruptcy petition, the official receiver may at any time before the discharge of any such member apply to the court for the public examination of that member. (2) Unless the court otherwise orders, the official receiver shall make an application under subsection (1) if notice requiring him to do so is given to him, in accordance with the rules, by one of the creditors of the member concerned with the concurrence of not less than one-half, in value, of those creditors (including the creditor giving notice). (3) On an application under subsection (1), the court shall direct that a public examination of the member shall be held on a day appointed by the court; and the member shall attend on that day and be publicly examined as to his affairs, dealings and property and as to those of the partnership. (4) The following may take part in the public examination of the member and may question him concerning the matters mentioned in subsection (3), namely— (a) the official receiver, (b) the trustee of the member’s estate, if his appointment has taken effect, (c) any person who has been appointed as special manager of the member’s estate or business or of the partnership property or business, (d) any creditor of the member who has tendered a proof in the bankruptcy. (5) On an application under subsection (1), the court may direct that the public examination of a member under this section be combined with the public examination of any other person. (6) If a member without reasonable excuse fails at any time to attend his public examination under this section he is guilty of a contempt of court and liable to be punished accordingly (in addition to any other punishment to which he may be subject).

Section 292: Power to appoint trustee

10

Section 292 is modified so as to read as follows—

(292) (1) The power to appoint a person as both trustee of the estates of the members of an insolvent partnership against whom orders are made on a joint bankruptcy petition an as trustee of the partnership is exercisable— (a) by a combined general meeting of the creditors of the members and of the partnership; (b) under section 295(2), 296(2) or 300(3) below in this Chapter, by the Secretary of State. (2) No person may be appointed as trustee of the members' estates and as trustee of the partnership unless he is, at the time of the appointment, qualified to act as an insolvency practitioner both in relation to the insolvent partnership and to each of the members. (3) Any power to appoint a person as trustee of the members' estates and of the partnership includes power to appoint two or more persons as joint trustees; but such an appointment must make provision as to the circumstances in which the trustees must act together and the circumstances in which one or more of them may act for the others. (4) The appointment of any person as trustee of the members' estates and of the partnership takes effect only if that person accepts the appointment in accordance with the rules.Subject to this, the appointment of any person as trustee takes effect at the time specified in his certificate of appointment. (5) This section is without prejudice to the provisions of this Chapter under which the official receiver is, in certain circumstances, to be trustee of the members' estates and of the partnership. (292A) (1) If the trustee of the members' estates and of the partnership is of the opinion at any time that there is a conflict of interest between his functions as trustee of the members' estates and his functions as trustee of the partnership, or between his functions as trustee of the estates of two or more members, he may apply to the court for directions. (2) On an application under subsection (1), the court may, without prejudice to the generality of its power to give directions, appoint one or more insolvency practitioners either in place of the applicant to act both as trustee of the members' estates and as trustee of the partnership, or to act as joint trustee with the applicant.

Sections 293 and 294: Summoning of meeting to appoint trustee

11

Sections 293 and 294 are modified so as to read as follows—

(293) (1) Where orders are made by virtue of article 11 of the Insolvent Partnerships Order 1994, the official receiver, by virtue of his office, becomes the trustee of the estates of the members and the trustee of the partnership and continues in office until another person becomes trustee under the provisions of this Part. (2) The official receiver is, by virtue of his office, the trustee of the estates of the members and the trustee of the partnership during any vacancy. (3) At any time when he is trustee, the official receiver may summon a combined meeting of the creditors of the members and the creditors of the partnership, for the purpose of appointing a trustee in place of the official receiver. (4) 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 first order was made by virtue of article 11 of the Insolvent Partnerships Order 1994, to decide whether to exercise his power under subsection (3) to summon a meeting, and (b) if in pursuance of paragraph (a) he decides not to exercise that power, to give notice of his decision, before the end of that period, to the court and to those creditors of the members and those of the partnership who are known to the official receiver or dentified in a statement of affairs submitted under section 272, and (c) (whether or not he has decided to exercise that power) to exercise his power to summon a meeting under subsection (3) if he is at any time requested to do so by one-quaater, in value, of either— (i) the creditors of any member against whom an insolvency order has been made, or (ii) the partnership’s creditors, and accordingly, where the duty imposed by paragraph (c) arises before the official receiver has performed a duty imposed by paragraph (a) or (b), he is not required to perform the latter duty. (5) A notice given under subsection (4)(b) to the creditors shall contain an explanation of the creditors' power under subsection (4)(c) to require the official receiver to sum on a combined meeting of the creditors of the partnership and of the members against who insolvency orders have been made. (6) If the official receiver, in pursuance of subsection (4)(a), has decided to exercise his power under subsection (3) to summon a meeting, he shall hold that meeting in the period of 4 months beginning with the day on which the first order was made by virtue of article 11 of the Insolvent Partnerships Order 1994. (7) If (whether or not he has decided to exercise that power) the official receiver is requested, in accordance with the provisions of subsection (4)(c), to exercise his power under subsection (3) to summon a meeting, he shall hold that meeting in accordance with the rules. (8) Where a meeting of creditors of the partnership and of the members has been held, and an insolvency order is subsequently made against a further insolvent member by virtue of article 11 of the Insolvent Partnerships Order 1994— (a) any person chosen at the meeting to be responsible insolvency practitioner in place of the official receiver shall also be the responsible insolvency practitioner of the member against whom the subsequent order is made, and (b) subsection (4) of this section shall not apply.

Section 295: Failure of meeting to appoint trustee

12

Section 295 is modified so as to read as follows—

(295) (1) If a meeting of creditors summoned under section 293 is held but no appointment of a person as trustee is made, it is the duty of the official receiver to decide whether to refer the need for an appointment to the Secretary of State. (2) On a reference made in pursuance of that decision, the Secretary of State shall either make an appointment or decline to make one. (3) If— (a) the official receiver decides not to refer the need for an appointment to the Secretary of State, or (b) on such a reference the Secretary of State declines to make an appointment, the official receiver shall give notice of his decision or, as the case may be, of the Secretary of State’s decision to the court.

Section 296: Appointment of trustee by Secretary of State

13

Section 296 is modified so as to read as follows—

(296) (1) At any time when the official receiver is the trustee of the members' estates and of the partnership by virtue of any provision of this Chapter he may apply to the Secretary of State for the appointment of a person as trustee instead of the official receiver. (2) On an application under subsection (1) the Secretary of State shall either make an appointment or decline to make one. (3) Such an application may be made notwithstanding that the Secretary of State has declined to make an appointment either on a previous application under subsection (1) or on reference under section 295 or under section 300(2) below. (4) Where a trustee has been appointed by the Secretary of State under subsection (2) of this section, and an insolvency order is subsequently made against a further insolvent member by virtue of article 11 of the Insolvent Partnerships Order 1994, then the trustee so appointed shall also be the trustee of the member against whom the subsequent order is made. (5) Where the trustee of the members' estates and of the partnership has been appointed by the Secretary of State (whether under this section or otherwise) or has become trustee of a further insolvent member under subsection (4), the trustee shall give notice of his appointment or further appointment (as the case may be) to the creditors of the members and the creditors of the partnership or, if the court so allows, shall advertise his appointment in accordance with the court’s directions. (6) Subject to subsection (7) below, in that notice or advertisement the trustee shall— (a) state whether he proposes to summon a combined general meeting of the creditors of the members and of the creditors of the partnership for the purpose of establishing a creditors' committee under section 301, and (b) if he does not propose to summon such a meeting, set out the power of the creditors under this Part to require him to summon one. (7) Where in a case where subsection (4) applies a meeting referred to in subsection (6) (a) has already been held, the trustee shall state in the notice or advertisement whether a creditors' committee was established at that meeting and— (a) if such a committee was established, shall state whether he proposes to appoint additional members of the committee under section 301A(3), and (b) if such a committee was not established, shall set out the power of the creditors to require him to summon a meeting for the purpose of determining whether a creditors' committee should be established.

Section 297: Rules applicable to meetings of creditors

14

Section 297 is modified so as to read as follows—

(297) (1) This section applies where the court has made orders by virtue of article 11 of the Insolvent Partnerships Order 1994. (2) Subject to subsection (3) below, the rules relating to the requisitioning, summoning, holding and conducting of meetings on the bankruptcy of an individual are to apply (with the necessary modifications) to the requisitioning, summoning, holding and conducting of separate meetings of the creditors of each member and of combined meetings of the creditors of the partnership and the creditors of the members. (3) Any combined meeting of creditors shall be conducted as if the creditors of the members and of the partnership were a single set of creditors.

Section 298: Removal of trustee; vacation of office

15

Section 298 is modified so as to read as follows—

(298) (1) Subject as follows, the trustee of the estates of the members and of the partnership may be removed from office only by an order of the court. (2) If the trustee was appointed by the Secretary of State, he may be removed by a direction of the Secretary of State. (3) The trustee (not being the official receiver) shall vacate office if he ceases to be a person who is for the time being qualified to act as an insolvency practitioner in relation to any member or to the partnership. (4) The trustee may, with the leave of the court (or, if appointed by the Secretary of State, with the leave of the court or the Secretary of State), resign his office by giving notice of his resignation to the court. (5) Subject to subsections (6) and (7) below, any removal from or vacation of office under this section relates to all offices held in the proceedings by virtue of article 11 of the Insolvent Partnerships Order 1994. (6) The trustee shall vacate office on giving notice to the court that a final meeting has been held under section 331 in Chapter IV (final meeting of creditors of insolvent partnership or of members) and of the decision (if any) of that meeting. (7) The trustee shall vacate office as trustee of a member if the order made by virtue of article 11 of the Insolvent Partnerships Order 1994 in relation to that member is annulled.

Section 299: Release of trustee

16

Section 299 is modified so as to read as follows—

(299) (1) Where the official receiver has ceased to be the trustee of the members' estates and of the partnership and a person is appointed in his stead, the official receiver shall have his release with effect from the following time, that is to say— (a) where that person is appointed by a combined general meeting of creditors of the members and of the partnership or by the Secretary of State, the time at which the official receiver gives notice to the court that he has been replaced, and (b) where that person is appointed by the court, such time as the court may determine. (2) If the official receiver while he is the trustee gives notice to the Secretary of State that the administration of the estate of any member, or the winding up of the partnership business and administration of its affairs, is for practical purposes complete, he shall have his release as truste of any member or as trustee of the partnership (as the case may be) with effect from such time as the Secretary of State may determine. (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 shall have his release with effect from the following time, that is to say— (a) in the case of a person who has died, the time at which notice is given to the court in accordance with the rules that that person has ceased to hold office; (b) in the case of a person who has been removed from office by the court or by the Secretary of State, or who has vacated office under section 298(3), such time as the Secretary of State may, on an application by that person, determine; (c) in the case of a person who has resigned, such time as may be directed by the court (or, if he was appointed by the Secretary of State, such time as may be directed by he court or as the Secretary of State may, on an application by that person, determine); (d) in the case of a person who has vacated office under section 298(6)— (i) if the final meeting referred to in that subsection has resolved against that person’s release, such time as the Secretary of State may, on an application by that person, determine; and (ii) if that meeting has not so resolved, the time at which the person vacated office. (4) Where an order by virtue of article 11 of the Insolvent Partnerships Order 1994 is annulled in so far as it relates to any member, the trustee at the time of the annulment as his release in respect of that member with effect from such time as the court may determine. (5) Where the trustee (including the official receiver when so acting) has his release under this section, he shall, with effect from the time specified in the preceding provisions of this section, be discharged from all liability both in respect of acts or omissions of his in the administration of the estates of the members and in the winding up of the partnership business and administration of its affairs and otherwise in relation to his conduct as trustee. - But nothing in this section prevents the exercise, in relation to a person who has had his release under this section, of the court’s powers under section 304 (liability of trustee).

Section 300: Vacancy in office of trustee

17

Section 300 is modified so as to read as follows—

(300) (1) This section applies where the appointment of any person as trustee of the members' estates and of the partnership fails to take effect or, such an appointment having taken effect, there is otherwise a vacancy in the office of trustee. (2) The official receiver may refer the need for an appointment to the Secretary of State and shall be trustee until the vacancy is filled. (3) On a reference to the Secretary of State under subsection (2) the Secretary of State shall either make an appointment or decline to make one. (4) If on a reference under subsection (2) no appointment is made, the official receiver shall continue to be trustee, but without prejudice to his power to make a further reference. (5) References in this section to a vacancy include a case where it is necessary, in relation to any property which is or may be comprised in a member’s estate, to revive the trusteeship of that estate after the holding of a final meeting summoned under section 331 or the giving by the official receiver of notice under section 299(2).

Section 301: Creditors' committee

18

Section 301 is modified so as to read as follows—

(301) (1) Subject as follows, a combined general meeting of the creditors of the member and of the partnership (whether summoned under the preceding provisions of this Chapter or otherwise) may establish a committee (known as “the creditors' committee”) to exercis the functions conferred on it by or under this Act. (2) A combined general meeting of the creditors of the members and of the partnership shall not establish such a committee, or confer any functions on such a committee, at any time when the official receiver is the trustee, except in connection with an appointment made by that meeting of a person to be trustee instead of the official receiver. (301A) (1) The committee established under section 301 shall act as creditors' committee for each member and as liquidation committee for the partnership, and shall as appropriate exercise the functions conferred on creditors' and liquidation committees in a bankruptcy or winding up by or under this Act. (2) The rules relating to liquidation committees are to apply (with the necessary modifications and with the exclusion of all references to contributories) to a committee established under section 301. (3) Where the appointment of the trustee also takes effect in relation to a further insolvent member under section 293(8) or 296(4), the trustee may appoint any creditor of that member (being qualified under the rules to be a member of the committee) to be an additional member of any creditors' committee already established under section 301, provided that the creditor concerned consents to act. (4) The court may at any time, on application by a creditor of any member or of the partnership, appoint additional members of the creditors' committee. (5) If additional members of the creditors' committee are appointed under subsection (3 or (4), the limit on the maximum number of members of the committee specified in the rules shall be increased by the number of additional members so appointed.

Section 305: General functions and powers of trustee

19

Section 305 is modified so as to read as follows—

(305) (1) The function of the trustee of the estates of the members and of the partnership is to get in, realise and distribute the estates of the members and the partnership property in accordance with the following provisions of this Chapter. (2) The trustee shall have all the functions and powers in relation to the partnership ad the partnership property that he has in relation to the members and their estates. (3) In the carrying out of his functions and in the management of the members' estates and the partnership property the trustee is entitled, subject to the following provisions of this Chapter, to use his own discretion. (4) It is the duty of the trustee, if he is not the official receiver— (a) to furnish the official receiver with such information, (b) to produce to the official receiver, and permit inspection by the official receiver of, such books, papers and other records, and (c) to give the official receiver such other assistance, as the official receiver may reasonably require for the purpose of enabling him to carry out his functions in relation to the bankruptcy of the members and the winding up of the partnership business and administration of its property. (5) The official name of the trustee in his capacity as trustee of a member shall be “the trustee of the estate of , a bankrupt” (inserting the name of the member concerned); but he may be referred to as “the trustee in bankruptcy” of the particular member. (6) The official name of the trustee in his capacity as trustee of the partnership shall be “the trustee of , a partnership” (inserting the name of the partnership concerned).

Section 312: Obligation to surrender control to trustee

20

Section 312 is modified so as to read as follows—

(312) (1) This section applies where orders are made by virtue of article 11 of the Insolvent Partnerships Order 1994 and a trustee is appointed. (2) Any person who is or has been an officer of the partnership in question, or who is an executor or administrator of the estate of a deceased officer of the partnership, shall deliver up to the trustee of the partnership, for the purposes of the exercise of the trustee’s functions under this Act, possession of any partnership property which he holds for the purposes of the partnership. (3) Each member shall deliver up to the trustee possession of any property, books, papers or other records of which he has possession or control and of which the trustee is required to take possession. - This is without prejudice to the general duties of the members as bankrupts under section 333 in this Chapter. (4) If any of the following is in possession of any property, books, papers or other records of which the trustee is required to take possession, namely— (a) the official receiver, (b) a person who has ceased to be trustee of a member’s estate, (c) a person who has been the administrator of the partnership or supervisor of a voluntary arrangement approved in relation to the partnership under Part I, (d) a person who has been the supervisor of a voluntary arrangement approved in relation to a member under Part VIII, the official receiver or, as the case may be, that person shall deliver up possession of the property, books, papers or records to the trustee. (5) Any banker or agent of a member or of the partnership, or any other person who hold any property to the account of, or for, a member or the partnership shall pay or deliver to the trustee all property in his possession or under his control which forms part of he member’s estate or which is partnership property and which he is not by law entitled to retain as against the member, the partnership or the trustee. (6) If any person without reasonable excuse fails to comply with any obligation imposed by this section, he is guilty of a contempt of court and liable to be punished accordingly (in addition to any other punishment to which he may be subject).

20A

Section 313A: Low value home: application for sale, possession or charge

• Section 313A is modified so as to read as follows:—313A1This section applies where—aproperty comprised in the individual member’s estate consists of an interest in a dwelling-house which at the date of the bankruptcy was the sole or principal residence of—ithe individual member,iithe individual member’s spouse or civil partner, oriiia former spouse or former civil partner of the individual member, andbthe trustee applies for an order for the sale of the property, for an order for possession of the property or for an order under section 313 in respect of the property.2The court shall dismiss the application if the value of the interest is below the amount prescribed for the purposes of this subsection.3In determining the value of an interest for the purposes of this section the court shall disregard any matter which it is required to disregard by the order which prescribes the amount for the purposes of subsection (2)..

Section 328: Priority of expenses and debts

21

Section 328 is modified so as to read as follows—