Receivers and managers (England and Wales)
15(1)Section 196 (payment of debts out of assets subject to a floating charge) shall be amended as follows.
(2)In subsection (1), after the words " secured by " there shall be inserted the words " a charge which, as created, was ".
(3)In subsection (2), for the words from " the relevant" to " payments " there shall be substituted the words " section 89 of the Insolvency Act 1985 and Schedule 4 to that Act (read with Schedule 3 to the [1975 c. 60.] Social Security Pensions Act 1975) ".
(4)For subsections (3) and (4) there shall be substituted the following subsection—
“(3)For the purposes of this section Schedule 4 to the said Act of 1985 and Schedule 3 to the said Act of 1975 shall each have effect as if—
(a)references to the relevant date were references to the date of the appointment of the receiver or the taking of possession as mentioned in subsection (1) above ; and
(b)references to the company going into liquidation were references to the appointment of the receiver or the taking of possession as so mentioned.”
16(1)Section 492 (receivers and managers appointed out of court) shall be amended as follows.
(2)For subsection (1) there shall be substituted the following subsection—
“(1)A receiver or manager of the property of a company appointed under powers contained in an instrument, or the persons by whom or on whose behalf a receiver or manager has been so appointed, may apply to the court for directions in relation to any particular matter arising in connection with the performance of the functions of the receiver or manager.”
(3)In subsection (3), after the word "provides)" there shall be inserted the words " and on any contract of employment adopted by him in the performance of those functions ".
(4)After that subsection there shall be inserted the following subsections—
“(4)For the purposes of subsection (3)(a) the receiver or manager is not to be taken to have adopted a contract of employment by reason of anything done or omitted to be done within fourteen days after his appointment.
(5)Where at any time a receiver or manager so appointed vacates office—
(a)his remuneration and any expenses properly incurred by him; and
(b)any indemnity to which he is entitled out of the assets of the company,
shall be charged on and paid out of any property of the company which is in his custody or under his control at that time in priority to any charge or other security held by the person by or on whose behalf he was appointed.”
17(1)Section 498 (receivership accounts to be delivered to the registrar) shall be amended as follows.
(2)In subsection (1), for the words "Except where section 497 applies " there shall be substituted the words " Except in the case of an administrative receiver ".
(3)In subsection (2), for the words " 6 months ", in the first place where they occur, there shall be substituted the words " 12 months ".
(4)In subsection (3), for the words " 6 months", in both places where they occur, there shall be substituted the words " 12 or 6 months ".