Part 1 Bankruptcy

Effect of bankruptcy restrictions orders and undertakings

3 Disqualification from being appointed as receiver

(1) Section 51 of the Insolvency Act 1986 (c. 45) (appointment of receiver) is amended as follows.

(2) In subsection (3), after paragraph (b), insert—

“(ba) a person subject to a bankruptcy restrictions order;”.

(3) In subsection (5), after “bankrupt” insert “or a person subject to a bankruptcy restrictions order”.

(4) In subsection (6), after “receivers” insert “; and

“bankruptcy restrictions order” means—

(a) a bankruptcy restrictions order made under section 56A of the Bankruptcy (Scotland) Act 1985 (c. 66);

(b) a bankruptcy restrictions undertaking entered into under section 56G of that Act;

(c) a bankruptcy restrictions order made under paragraph 1 of Schedule 4A to this Act; or

(d) a bankruptcy restrictions undertaking entered into under paragraph 7 of that Schedule.”.

4 Disqualification for nomination, election and holding office as member of local authority

In section 31 of the Local Government (Scotland) Act 1973 (c. 65) (disqualifications for nomination, election and holding office as member of local authority)—

(a) after subsection (1)(b), insert—

“(ba) he is subject to a bankruptcy restrictions order;”; and

(b) after subsection (3A), insert—

“(3B) In subsection (1)(ba) above, “bankruptcy restrictions order” means—

(a) a bankruptcy restrictions order made under section 56A of the Bankruptcy (Scotland) Act 1985;

(b) a bankruptcy restrictions undertaking entered into under section 56G of that Act;

(c) a bankruptcy restrictions order made under paragraph 1 of Schedule 4A to the Insolvency Act 1986 (c. 45); or

(d) a bankruptcy restrictions undertaking entered into under paragraph 7 of that Schedule.”.

5 Orders relating to disqualification

After section 71A of the 1985 Act, insert—

“71B Disqualification provisions: power to make orders

(1) The Scottish Ministers may make an order under this section in relation to a disqualification provision.

(2) A “disqualification provision” is a provision made by or under any enactment which disqualifies (whether permanently or temporarily and whether absolutely or conditionally) a relevant debtor or a class of relevant debtors from—

(a) being elected or appointed to an office or position;

(b) holding an office or position; or

(c) becoming or remaining a member of a body or group.

(3) In subsection (2) above, the reference to a provision which disqualifies a person conditionally includes a reference to a provision which enables him to be dismissed.

(4) An order under subsection (1) above may repeal or revoke the disqualification provision.

(5) An order under subsection (1) above may amend, or modify the effect of, the disqualification provision—

(a) so as to reduce the class of relevant debtors to whom the disqualification provision applies;

(b) so as to extend the disqualification provision to some or all individuals who are subject to a bankruptcy restrictions order;

(c) so that the disqualification provision applies only to some or all individuals who are subject to a bankruptcy restrictions order;

(d) so as to make the application of the disqualification provision wholly or partly subject to the discretion of a specified person, body or group.

(6) An order by virtue of subsection (5)(d) above may provide for a discretion to be subject to—

(a) the approval of a specified person or body;

(b) appeal to a specified person, body, court or tribunal.

(7) The Scottish Ministers may be specified for the purposes of subsection (5)(d) or (6)(a) or (b) above.

(8) In this section—

• “bankruptcy restrictions order” includes—

  (a)

  a bankruptcy restrictions undertaking;

  (b)

  a bankruptcy restrictions order made under paragraph 1 of Schedule 4A to the Insolvency Act 1986 (c. 45); and

  (c)

  a bankruptcy restrictions undertaking entered into under paragraph 7 of that Schedule;

• “relevant debtor” means a debtor—

  (a)

  whose estate has been sequestrated;

  (b)

  who has granted (or on whose behalf there has been granted) a trust deed;

  (c)

  who has been adjudged bankrupt by a court in England and Wales or in Northern Ireland; or

  (d)

  who, in England and Wales or in Northern Ireland, has made an agreement with his creditors for a composition in satisfaction of his debts or a scheme of arrangement of his affairs or for some other kind of settlement or arrangement.

(9) An order under this section—

(a) may make provision generally or for a specified purpose only;

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

(c) may make transitional, consequential or incidental provision.

(10) An order under this section—

(a) shall be made by statutory instrument; and

(b) shall not be made unless a draft has been laid before and approved by a resolution of the Scottish Parliament.”.