SCHEDULES

SCHEDULE 16The Law Society, solicitors, recognised bodies and foreign lawyers

Part 2The Administration of Justice Act 1985 (c. 61)

I1119

1

Paragraph 32 of that Schedule (intervention by Society) is amended as follows.

2

In sub-paragraph (1)(a)—

a

for “Council are” substitute “ Society is ”,

b

after “recognised body” insert “ or a manager of such a body ”, and

c

for “it” substitute “ the body or manager ”.

3

For sub-paragraph (1)(c) substitute—

c

a relevant insolvency event occurs in relation to a recognised body; or

4

In sub-paragraph (1)(d)—

a

for “Council have” substitute “ Society has ”,

b

for “officer” substitute “ manager ”, and

c

for “that body's” to the end substitute—

i

that body's business,

ii

any trust of which that body is or was a trustee,

iii

any trust of which the manager or employee is or was a trustee in his capacity as such a manager or employee, or

iv

the business of another body in which the manager or employee is or was a manager or employee or the practice (or former practice) of the manager or employee; or

5

After sub-paragraph (1)(d) insert—

e

the Society is satisfied that it is necessary to exercise the powers conferred by Part 2 of Schedule 1 to the 1974 Act (or any of them) in relation to a recognised body to protect—

i

the interests of clients (or former or potential clients) of the recognised body,

ii

the interests of the beneficiaries of any trust of which the recognised body is or was a trustee, or

iii

the interests of the beneficiaries of any trust of which a person who is or was a manager or employee of the recognised body is or was a trustee in that person's capacity as such a manager or employee;

6

After sub-paragraph (1) insert—

1A

For the purposes of this paragraph a relevant insolvency event occurs in relation to a recognised body if—

a

a resolution for a voluntary winding-up of the body is passed without a declaration of solvency under section 89 of the Insolvency Act 1986;

b

the body enters administration within the meaning of paragraph 1(2)(b) of Schedule B1 to that Act;

c

an administrative receiver within the meaning of section 251 of that Act is appointed;

d

a meeting of creditors is held in relation to the body under section 95 of that Act (creditors' meeting which has the effect of converting a members' voluntary winding up into a creditors' voluntary winding up);

e

an order for the winding up of the body is made.

7

Omit sub-paragraph (2).