Postal Services Act 2011

Postal Services Act 2011

2011 CHAPTER 5

Commentary on Sections

Part 4: Special Administration

Restrictions on other insolvency procedures

Section 74: Winding up orders

322. This section applies if a person other than the Secretary of State petitions for the winding-up of a universal service provider and sets out how the court should act in certain circumstances.

323. Subsection (2) provides that the court is not to exercise its powers on a winding-up petition (for example, the power to grant the winding up order – see subsection (4)) unless:

a)

notice of the petition has been served on the Secretary of State and OFCOM, and

b)

a period of at least 14 days has elapsed since the service of the last of those notices to be served.

324. The notice and 14 day period are intended to avoid a winding up order being granted before the Secretary of State and OFCOM have been given an opportunity seek a postal administration order.

325. If an application for a postal administration order is made before the winding-up order is made (that is, within the 14 day period), subsection (3) allows the court to exercise its powers under section 71 (for example, to make a postal administration order) instead of exercising its powers on the petition for the winding up order.

326. Subsection (4) clarifies that references in this section to the court’s powers on a winding-up petition are to:

a)

its powers under section 125 of the Insolvency Act 1986 (for example, to make a winding up order or dismiss the petition etc.) other than its power of adjournment, and

b)

its powers under section 135 of the Insolvency Act 1986 (for example, to appoint a provisional liquidator).