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Flood and Water Management Act 2010

Section 34: Special Administration

343.This section introduces Schedule 5: Special Administration.

344.This Schedule to the Act amends the special administration regime provisions in the Water Industry Act 1991 to align it more closely with the general administration regime, as amended by the Enterprise Act 2002. The special administration regime comes into play when a water company (a water undertaker, sewerage undertaker or qualifying licensed water supplier) becomes insolvent or fails to carry out its statutory functions or licensed activities to such an extent that a transfer to a new owner is seen as the only reasonable way to protect the interests of water and sewerage customers. The amendments provide the appointed special administrator with an additional purpose to the pursuit of the “transfer purpose” to instigate a rescue plan. The Schedule also amends provisions and includes new provisions related to the transfer purpose, and provides powers to adapt general insolvency and company law provisions for the purpose of the special administration regime.

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