The Insolvent Partnerships (Amendment) Order 2005

Explanatory Note

(This note is not part of the Order)

This Order amends the Insolvent Partnerships Order 1994 (S.I. 1994/2421) (“the 1994 Order”). The following are the main changes made to the 1994 Order.

1.  Article 3 substitutes Article 6 of the 1994 Order to take account of the amendment to Part II of the Insolvency Act 1986 (c. 45) (“the 1986 Act”) by section 248 of the Enterprise Act 2002 (c. 40) (“the 2002 Act”). Section 248 of the 2002 Act substituted Part II of the Insolvency Act 1986 (1986 c. 45). The substituted Part II consists only of section 8 which gives effect to Schedule B1 to the Act, which was set out in Schedule 16 to the 2002 Act. Schedule B1 makes provision for companies to go into administration by court order on an administration application or upon the appointment of an administrator by the company, its directors or the holder of a qualifying floating charge.

2.  Article 7 of this Order gives effect to Schedule 1 to this Order which substitutes Schedule 2 of the 1994 Order (modified provisions of Part II of the 1986 Act). The substituted Schedule 2 contains modifications to Schedule B1 to the 1986 Act.

3.  Article 4 amends Article 8 of the 1994 Order to provide that the provisions of section 176A of the 1986 Act (prescribed part) do not apply to insolvent partnerships.

4.  Article 5 amends Article 10 of the 1994 Order to remove a reference to summary administration consequent upon the abolition of that procedure by the 2002 Act.

5.  Article 6 amends Schedule 1 to the 1994 Order consequent upon the changes to administration in the 2002 Act. Article 6(4) amends the provisions of modified Schedule Al to take account of changes to the definition of small to medium enterprises in the Companies Act 1985 (Accounts of Small and Medium-Sized Enterprises and Audit Exemption) (Amendment) Regulations 2004 (S.I. 2004/16).

6.  Article 8 amends Schedule 3 to the 1994 Order consequent upon amendments made in the 2002 Act.

7.  Article 9 amends Schedule 4 to the 1994 Order to provide for the modified application of sections 283A and 313A of the 1986 Act which were inserted by the 2002 Act regarding treatment of the matrimonial home in bankruptcy.

8.  Article 10 amends Schedule 7 to the 1994 Order to remove references to summary administration consequent upon the abolition of that procedure by the 2002 Act, and to make provision for the application of sections 283A and 313A of the 1986 Act as inserted by the 2002 Act regarding treatment of the matrimonial home in bankruptcy.

9.  Article 11 amends Schedule 8 to the 1994 Order (modification of Company Directors Disqualification Act 1986) consequent upon amendments made by the 2002 Act.

10.  Article 12 and Schedule 2 provide for modified Forms for the administration of Insolvent Partnerships.

11.  Article 13 amends Schedule 10 to the 1994 Order to reflect the revocation and legislative replacement of certain applicable subordinate legislation.

No regulatory impact assessment has been prepared for this Order as it will not impose any significant costs on business.