The Milk Marketing Board (Residuary Functions) Regulations 1994

PART VII FINAL LIQUIDATION OF THE BOARD

Completion of winding up and distribution of surplus

27.—(1) The completion of the winding up of the affairs of the Board (in these Regulations referred to as “the final liquidation of the Board”) shall be conducted in accordance with either of the two methods specified in paragraph (2) below.

(2) The methods mentioned in paragraph (1) above are–

(a) a voluntary solvent liquidation under regulation 28;

(b) a liquidation on application to the court under the 1986 Act in accordance with the amended provisions of the old marketing scheme to which reference is made in regulation 29.

(3) Any surplus assets of the Board remaining on the final liquidation shall be distributed by way of distributions (in these Regulations referred to as “final distributions”) among registered eligible producers, pari passu and in accordance with their distribution entitlements.

Voluntary solvent liquidation

28.—(1) This regulation applies where–

(a) all moneys standing to the credit of the B Reserve Fund have been withdrawn from it and the Board have made the final payments (as that expression is used in Schedule 4) to the end year producers,

(b) the Board are satisfied that–

(i) their assets have been got in and realised or otherwised disposed of, and

(ii) their liabilities and other functions under these Regulations (other than those specified in this Part) have been discharged, and

(c) there is a surplus in the general fund.

(2) Where the circumstances mentioned in paragraph (1) above apply the Board may make the final distributions.

(3) As soon as the Board have made the final distributions under paragraph (2) above, they shall make up an account showing–

(a) how their assets have been got in and realised, and

(b) how the Board’s assets have been disposed of,

and shall thereupon call a general meeting of registered eligible producers for the purpose of laying before it the account and giving an explanation of it.

(4) The provisions of Part VII of the old marketing scheme as set out in Schedule 3 shall apply to the advertisement and conduct of such meeting, subject to the further requirement that in addition to publishing notice of the meeting under paragraph 80 of the old marketing scheme as so set out the Board shall give notice of it in the London Gazette.

(5) Within one week after the meeting, the Board shall send to the Minister a copy of the account and shall make a return to him of the holding of the meeting and of its date.

(6) The voluntary solvent liquidation of the Board under this regulation does not bar the right of any creditor or registered eligible producer (being a contributory for the purposes of section 124 of the 1986 Act) to have the Board wound up by the court under the 1986 Act in accordance with the amended provisions of the old marketing scheme to which reference is made in regulation 29; but in the case of an application by a registered eligible producer the court must be satisfied that the rights of registered eligible producers will be prejudiced by a voluntary liquidation by the Board under this regulation.

Liquidation on application to court under the 1986 Act

29.—(1) Paragraphs 91 and 92 of the old marketing scheme (which by virtue of section 13 of the Act but subject to these Regulations continue in force notwithstanding the revocation of the marketing scheme on Vesting Day) shall be amended and shall have effect as set out in Schedule 3.

(2) After paragraph 91 of the old marketing scheme, there shall be inserted new paragraphs 91A and 91B, which shall have effect as set out in Schedule 3.