CHAPTER I U.K. GENERAL PROVISIONS

Article 1 U.K. [F1 Application and jurisdiction]

[F2 1. The grounds for jurisdiction to open insolvency proceedings set out in paragraph 1B are in addition to any grounds for jurisdiction to open such proceedings which apply in the laws of any part of the United Kingdom.

1A. There is jurisdiction to open insolvency proceedings listed in paragraph 1B where the proceedings are opened for the purposes of rescue, adjustment of debt, reorganisation or liquidation and—

(a) the centre of the debtor's main interests is in the United Kingdom; or

(b) the centre of the debtor's main interests is in a Member State and there is an establishment in the United Kingdom.

1B. The proceedings referred to in paragraph 1 are—

(a) winding up by or subject to the supervision of the court;

(b) creditors' voluntary winding up with confirmation by the court;

(c) administration, including appointments made by filing prescribed documents with the court;

(d) voluntary arrangements under insolvency legislation; and

(e) bankruptcy or sequestration.]

2. This Regulation shall not apply to proceedings referred to in paragraph 1 that concern:

(a) insurance undertakings;

(b) credit institutions;

(c) investment firms and other firms, institutions and undertakings to the extent that they are covered by [F3 the Credit Institutions (Reorganisation and Winding up) Regulations 2004]; or

(d) collective investment undertakings.

Textual Amendments

F1 Art. 1 heading substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 2(2) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F2 Art. 1(1)-(1B) substituted for Art. 1(1) (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 2(3) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F3 Words in Art. 1(2) substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 2(4) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

Article 2 U.K. Definitions

For the purposes of this Regulation:

(1)

F4 ...

(1A)

[F5 “Member State” means a state which is a member of the EU other than Denmark;]

(2)

‘collective investment undertakings’ means undertakings for collective investment in transferable securities (UCITS) as defined in Directive 2009/65/EC of the European Parliament and of the Council(1) and alternative investment funds (AIFs) as defined in Directive 2011/61/EU of the European Parliament and of the Council(2);

(3)

F6 ...

(4)

‘insolvency proceedings’ means the proceedings [F7 listed in Article 1(1B) which there is jurisdiction to open under Article 1(1A) and includes interim proceedings];

(5)

‘insolvency practitioner’ means any person or body whose function, including on an interim basis, is to:

(i)

verify and admit claims submitted in insolvency proceedings;

(ii)

represent the collective interest of the creditors;

(iii)

administer, either in full or in part, assets of which the debtor has been divested;

(iv)

liquidate the assets referred to in point (iii); or

(v)

supervise the administration of the debtor's affairs.

The persons and bodies referred to in the first subparagraph are listed in Annex B;

(6)

‘court’ means:

(i)

F8 ...

(ii)

F9 ... the judicial body or any other competent body F9 ... empowered to open insolvency proceedings, to confirm such opening or to take decisions in the course of such proceedings;

(7)

‘judgment opening insolvency proceedings’ includes:

(i)

the decision of any court to open insolvency proceedings or to confirm the opening of such proceedings; and

(ii)

the decision of a court to appoint an insolvency practitioner;

(8)

‘the time of the opening of proceedings’ means the time at which the judgment opening insolvency proceedings becomes effective, regardless of whether the judgment is final or not;

(9)

F10 ...

(10)

‘establishment’ means any place of operations where a debtor carries out or has carried out in the 3-month period prior to the request to open F11 ... insolvency proceedings a non-transitory economic activity with human means and assets;

(11)

F12 ...

(12)

F12 ...

(13)

F12 ...

(14)

F12 ...

Textual Amendments

F4 Art. 2(1) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 3(b) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F5 Art. 2(1A) inserted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 3(a) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F6 Art. 2(3) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 3(b) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F7 Words in Art. 2(4) substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 3(c) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F8 Art. 2(6)(i) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 3(d)(i) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F9 Words in Art. 2(6)(ii) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 3(d)(ii) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F10 Art. 2(9) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 3(e) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F11 Word in Art. 2(10) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 3(f) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F12 Art. 2(11)-(14) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 3(g) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

Article 3 U.K. [F13 Centre of main interests]

1. F14 ...The centre of main interests shall be the place where the debtor conducts the administration of its interests on a regular basis and which is ascertainable by third parties.

In the case of a company or legal person, the place of the registered office shall be presumed to be the centre of its main interests in the absence of proof to the contrary. That presumption shall only apply if the registered office has not been moved [F15 from the United Kingdom to a Member State or to the United Kingdom from a Member State] within the 3-month period prior to the request for the opening of insolvency proceedings.

In the case of an individual exercising an independent business or professional activity, the centre of main interests shall be presumed to be that individual's principal place of business in the absence of proof to the contrary. That presumption shall only apply if the individual's principal place of business has not been moved [F16 from the United Kingdom to a Member State or to the United Kingdom from a Member State] within the 3-month period prior to the request for the opening of insolvency proceedings.

In the case of any other individual, the centre of main interests shall be presumed to be the place of the individual's habitual residence in the absence of proof to the contrary. This presumption shall only apply if the habitual residence has not been moved [F17 from the United Kingdom to a Member State or to the United Kingdom from a Member State] within the 6-month period prior to the request for the opening of insolvency proceedings.

F18 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F18 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F18 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F13 Art. 3 heading substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 4(2) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F14 Words in Art. 3(1) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 4(3)(a) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F15 Words in Art. 3(1) substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 4(3)(b) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F16 Words in Art. 3(1) substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 4(3)(c) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F17 Words in Art. 3(1) substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 4(3)(d) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F18 Art. 3(2)-(4) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 4(4) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

Article 4 U.K. Examination as to jurisdiction

1. A court seised of a request to open insolvency proceedings shall of its own motion examine whether it has jurisdiction pursuant to [F19 Article 1(1A) (a) or (b)]. [F20 Where there is jurisdiction to open insolvency proceedings on either of the grounds specified in Article 1(1A)(a) or (b), the judgment opening such proceedings must state which of those grounds is applicable.]

2. Notwithstanding paragraph 1, where insolvency proceedings are opened F21 ... without a decision by a court, F21 ... the insolvency practitioner appointed in such proceedings [F22 must examine the grounds on which there is jurisdiction to open the proceedings under Article 1(1A).] [F23 Where this is the case and there is jurisdiction to open insolvency proceedings on either of the grounds specified in Article 1(1A)(a) or (b), the insolvency practitioner must specify in the decision opening the proceedings which of those grounds is applicable.]

Textual Amendments

F19 Words in Art. 4(1) substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 5(2)(a) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F20 Words in Art. 4(1) substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 5(2)(b) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F21 Words in Art. 4(2) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 5(3)(a)(i) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F22 Words in Art. 4(2) substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 5(3)(a)(ii) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F23 Words in Art. 4(2) substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 5(3)(b) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

Article 5 U.K. Judicial review of the decision to open F24 ... insolvency proceedings

1. The debtor or any creditor may challenge before a court the decision opening F25 ... insolvency proceedings on [F26 the grounds of jurisdiction under Article 1(1A)(a)].

2. The decision opening F27 ... insolvency proceedings may be challenged by parties other than those referred to in paragraph 1 or on grounds other than a lack of F28 ... jurisdiction [F29 under Article 1(1A)(a)] where [F30 the relevant law (other than this Regulation) of the part of the United Kingdom in which the matter is being determined so provides].

Textual Amendments

F24 Word in Art. 5 heading omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 6(2) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F25 Word in Art. 5(1) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 6(3)(a) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F26 Words in Art. 5(1) substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 6(3)(b) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F27 Word in Art. 5(2) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 6(4)(a) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F28 Word in Art. 5(2) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 6(4)(b) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F29 Words in Art. 5(2) inserted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 6(4)(c) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F30 Words in Art. 5(2) substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 6(4)(d) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

F31 Article 6 U.K. Jurisdiction for actions deriving directly from insolvency proceedings and closely linked with them

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Textual Amendments

F31 Arts. 6-83 omitted (31.12.2020) by virtue of S.I. 2019/146, Sch. para. 7 (as substituted by The Insolvency (Amendment) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1459), reg. 1(2), Sch. para. 3; 2020 c. 1, Sch. 5 para. 1(1))

F31 Article 7 U.K. Applicable law

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Textual Amendments

F31 Arts. 6-83 omitted (31.12.2020) by virtue of S.I. 2019/146, Sch. para. 7 (as substituted by The Insolvency (Amendment) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1459), reg. 1(2), Sch. para. 3; 2020 c. 1, Sch. 5 para. 1(1))

F31 Article 8 U.K. Third parties' rights in rem

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Textual Amendments

F31 Arts. 6-83 omitted (31.12.2020) by virtue of S.I. 2019/146, Sch. para. 7 (as substituted by The Insolvency (Amendment) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1459), reg. 1(2), Sch. para. 3; 2020 c. 1, Sch. 5 para. 1(1))

F31 Article 9 U.K. Set-off

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Textual Amendments

F31 Arts. 6-83 omitted (31.12.2020) by virtue of S.I. 2019/146, Sch. para. 7 (as substituted by The Insolvency (Amendment) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1459), reg. 1(2), Sch. para. 3; 2020 c. 1, Sch. 5 para. 1(1))

F31 Article 10 U.K. Reservation of title

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Textual Amendments

F31 Arts. 6-83 omitted (31.12.2020) by virtue of S.I. 2019/146, Sch. para. 7 (as substituted by The Insolvency (Amendment) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1459), reg. 1(2), Sch. para. 3; 2020 c. 1, Sch. 5 para. 1(1))

F31 Article 11 U.K. Contracts relating to immoveable property

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Textual Amendments

F31 Arts. 6-83 omitted (31.12.2020) by virtue of S.I. 2019/146, Sch. para. 7 (as substituted by The Insolvency (Amendment) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1459), reg. 1(2), Sch. para. 3; 2020 c. 1, Sch. 5 para. 1(1))

F31 Article 12 U.K. Payment systems and financial markets

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Textual Amendments

F31 Arts. 6-83 omitted (31.12.2020) by virtue of S.I. 2019/146, Sch. para. 7 (as substituted by The Insolvency (Amendment) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1459), reg. 1(2), Sch. para. 3; 2020 c. 1, Sch. 5 para. 1(1))

F31 Article 13 U.K. Contracts of employment

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Textual Amendments

F31 Arts. 6-83 omitted (31.12.2020) by virtue of S.I. 2019/146, Sch. para. 7 (as substituted by The Insolvency (Amendment) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1459), reg. 1(2), Sch. para. 3; 2020 c. 1, Sch. 5 para. 1(1))

F31 Article 14 U.K. Effects on rights subject to registration

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Textual Amendments

F31 Arts. 6-83 omitted (31.12.2020) by virtue of S.I. 2019/146, Sch. para. 7 (as substituted by The Insolvency (Amendment) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1459), reg. 1(2), Sch. para. 3; 2020 c. 1, Sch. 5 para. 1(1))

F31 Article 15 U.K. European patents with unitary effect and Community trade marks

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Textual Amendments

F31 Arts. 6-83 omitted (31.12.2020) by virtue of S.I. 2019/146, Sch. para. 7 (as substituted by The Insolvency (Amendment) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1459), reg. 1(2), Sch. para. 3; 2020 c. 1, Sch. 5 para. 1(1))

F31 Article 16 U.K. Detrimental acts

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Textual Amendments

F31 Arts. 6-83 omitted (31.12.2020) by virtue of S.I. 2019/146, Sch. para. 7 (as substituted by The Insolvency (Amendment) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1459), reg. 1(2), Sch. para. 3; 2020 c. 1, Sch. 5 para. 1(1))

F31 Article 17 U.K. Protection of third-party purchasers

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Textual Amendments

F31 Arts. 6-83 omitted (31.12.2020) by virtue of S.I. 2019/146, Sch. para. 7 (as substituted by The Insolvency (Amendment) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1459), reg. 1(2), Sch. para. 3; 2020 c. 1, Sch. 5 para. 1(1))

F31 Article 18 U.K. Effects of insolvency proceedings on pending lawsuits or arbitral proceedings

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Textual Amendments

F31 Arts. 6-83 omitted (31.12.2020) by virtue of S.I. 2019/146, Sch. para. 7 (as substituted by The Insolvency (Amendment) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1459), reg. 1(2), Sch. para. 3; 2020 c. 1, Sch. 5 para. 1(1))

(1)

Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (OJ L 302, 17.11.2009, p. 32).

(2)

Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1).