Insolvency Act 1985

Qualification

1 Unqualified persons not to act as insolvency practitioners

(1) Any person who acts as an insolvency practitioner in relation to a company or an individual at a time when he is not qualified to do so shall be liable—

(a) on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding the statutory maximum or to both;

(b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both.

(2) A person acts as an insolvency practitioner in relation to a company by acting—

(a) as its liquidator, administrator or administrative receiver ; or

(b) as supervisor of a composition or scheme approved by it under Chapter II of Part II of this Act.

(3) A person acts as an insolvency practitioner in relation to an individual by acting—

(a) as his trustee in bankruptcy or interim receiver of his property or as permanent or interim trustee in the sequestration of his estate;

(b) as trustee under a deed which is a deed of arrangement made for the benefit of his creditors or. in Scotland, a trust deed for his creditors;

(c) as supervisor of a composition or scheme proposed by him and approved under Chapter I of Part III of this Act; or

(d) in the case of a deceased individual to the administration of whose estate this section applies by virtue of an order under section 228 below, as administrator of that estate.

(4) References in this section to an individual include, except in so far as the context otherwise requires, references to a partnership and to any debtor within the meaning of the [1985 c. 66.] Bankruptcy (Scotland) Act 1985.

(5) In this section—

• " administrative receiver" has the same meaning as in Part II of this Act;

• " company " means a company within the meaning given by section 735(1) of the 1985 Act or a company which may be wound up under Part XXI of that Act;

• " interim trustee " and " permanent trustee " have the same meanings as in the Bankruptcy (Scotland) Act 1985 ;

• " liquidator " includes provisional liquidator.

(6) Nothing in this section shall apply in relation to anything done by the official receiver.

2 Qualification of insolvency practitioners

(1) A person who is not an individual is not qualified to act as an insolvency practitioner.

(2) A person is not qualified to act as an insolvency practitioner at any time unless, at that time—

(a) he is authorised to act as an insolvency practitioner by virtue of section 3 below; or

(b) he holds an authorisation granted under section 5 below.

(3) A person is not qualified to act as an insolvency practitioner in relation to another person at any time unless—

(a) there is in force at that time security or, in Scotland, caution for the proper performance of his functions; and

(b) that security or caution meets the prescribed requirements with respect to his so acting in relation to that other person.

(4) A person is not qualified to act as an insolvency practitioner at any time if, at that time—

(a) he has been adjudged bankrupt or sequestration of his estate has been awarded and (in either case) he has not been discharged;

(b) he is subject to a disqualification order made under sections 296 to 299 of the 1985 Act or Chapter I of Part II of this Act; or

(c) he is a patient within the meaning of Part VII of the [1983 c. 20.] Mental Health Act 1983 or section 125(1) of the [1984 c. 36.] Mental Health (Scotland) Act 1984.