Annex A - Territorial extent and application in the United Kingdom
- This table summarises the territorial extent and application for the sections in the Act. The territorial extent of the Act is, variously, the United Kingdom; England and Wales and Scotland; England and Wales only; Scotland only; or Northern Ireland only. 1
Provision Extends to E & W and applies to England? Extends to E & W and applies to Wales? Extends and applies to Scotland? Extends and applies to Northern Ireland? Would corresponding provision be within the competence of the National Assembly for Wales? Would corresponding provision be within the competence of the Scottish Parliament? Would corresponding provision be within the competence of the Northern Ireland Assembly? Legislative Consent Motion needed? Moratorium
Section 1
Section 2, 3 and Schedule 1, 2, 3, 4
Section 4, 5, 6 and Schedule 5, 6, 7, 8
Yes
Yes
No
Yes
Yes
No
Yes
Yes
No
Yes (in part)
No
Yes
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Yes (S, W)
Yes (S, W)
Yes (NI)
Reconstruction
Section 7 and Schedule 9
Yes Yes Yes Yes N/A N/A N/A Yes (NI) Administration
Section 8
Section 9
Yes
No
Yes
No
Yes
No
No
Yes
N/A
N/A
N/A
N/A
N/A
N/A
No
Yes (NI)
Winding-up petitions
Section 10 and Schedule 10
Section 11 and Schedule 11
Yes
No
Yes
No
Yes
No
No
Yes
N/A
N/A
N/A
N/A
N/A
N/A
Yes (S)
Yes (NI)
Wrongful trading
Section 12
Section 13
Yes
No
Yes
No
Yes
No
No
Yes
N/A
N/A
N/A
N/A
N/A
N/A
No
Yes (NI)
Termination clauses
Sections 14, 15 and Schedule 12
Sections 16 – 19 and Schedule 13
Yes
No
Yes
No
Yes
No
No
Yes
N/A
N/A
N/A
N/A
N/A
N/A
Yes (S)
Yes (NI)
Power to amend
Sections 20 – 24
Section 25 - 27
Sections 28 - 36
Yes
Yes
No
Yes
Yes
No
Yes
Yes
No
No
Yes
Yes
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Yes (S)
No
Yes (NI)
Meetings and filings
Section 37 and Schedule 14
Sections 38, 39, 40
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
N/A
N/A
N/A
N/A
N/A
N/A
Yes (S - CIOs), (NI - certain mutual societies)
No
Powers to change periods
Section 41
Section 42
Yes
No
Yes
No
Yes
No
No
Yes
N/A
N/A
N/A
N/A
N/A
N/A
Yes (S)
Yes (NI)
Implementation of insolvency measures
Section 43
Section 44
Section 45
Section 46
Yes
No
No
Yes
Yes
Yes
No
Yes
Yes
No
Yes
Yes
No
No
No
Yes
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
No
Yes (W)
Yes (S)
Yes
General
Section 47
Yes Yes Yes Yes N/A N/A N/A No
Subject matter and legislative competence of devolved legislatures
- The provisions in sections 1, 2 and 3 and Schedules 1 to 4 extend to England and Wales and Scotland. In section 1, the inserted sections A50(4) to (6) and A55 by necessary implication extend also to Northern Ireland. These measures introduce a new moratorium provision to give companies breathing space from their creditors whilst they seek a rescue. The measures themselves do not engage any legislative consent process. However, powers are granted to both Scottish and Welsh Ministers (by section A50, Schedule 1 and further amendments in Schedule 3) which engages the legislative consent process. The powers relate to registered social landlords under the Housing Act 1996 (for which powers are given to Welsh Ministers to make provision under the law of England and Wales) and under the Housing (Scotland) Act 2010 (for which powers are given to Scottish Ministers to make provision under the law of Scotland) in relation to the reserved matter of the moratorium. A regulation making power for the Secretary of State to make any provision appropriate in view of the use of those powers extends to England and Wales, Scotland and Northern Ireland.
- The provisions in sections 4 to 6 and Schedules 5 to 8 extend to Northern Ireland only. They make provision corresponding to that made for Great Britain by sections 1 to 3 and Schedules 1 to 4. Insolvency is a transferred matter in relation to Northern Ireland, and these Northern Ireland provisions of the Act engage the legislative consent process.
- Section 7 and Schedule 9 extend to England and Wales, Scotland and Northern Ireland. These measures will allow struggling companies, or their creditors, to propose a new restructuring procedure under Part 26A of the Companies Act 2006. The measures will introduce a "cross-class cram down" provision that will allow dissenting classes of creditors to be overruled and bound to the plan.
- Section 8 extends to England and Wales, and Scotland.
- Section 9 extends to Northern Ireland only. It creates for Northern Ireland a power corresponding to the power that is revived by section 8. The power relates to disposals of property of a company in administration to connected persons.
- Section 10 and Schedule 10 extend to England and Wales and Scotland. These measures temporarily preventing a company being wound-up on the basis of an unpaid statutory demand served during the period of the COVID-19 outbreak. They also provides a temporary requirement that prevents a company being wound-up on the grounds that it is unable to pay its debts where the company’s financial position is due to the COVID-19 outbreak. This provision also falls within the "floating charge" exception since it will contain provision to extend the period in which steps may be taken in respect of transactions (including the creation of a floating charge) that took place within a specified period before the start of winding-up. It engages the legislative consent process.
- Section 11 and Schedule 11 extend to Northern Ireland only, and make provision corresponding to that made by section 10 and Schedule 10. As they relate to insolvency, which is a transferred matter in relation to Northern Ireland, they engage the legislative consent process.
- Section 12 extends to England and Wales and Scotland. It temporarily removes the threat of personal liability for wrongful trading from directors who try to keep their companies afloat through the COVID-19 emergency.
- Section 13 extends to Northern Ireland and makes provision corresponding to that made by section 12 As it relates to insolvency, which is a transferred matter in relation to Northern Ireland, it engages the legislative consent process.
- Sections 14 and 15 and Schedule 12 extend to England and Wales and Scotland. These measures prohibit termination and other clauses that engage on insolvency, so preventing suppliers from making payment of outstanding sums a condition of supply while a company is going through a rescue process. This measure (which applies in administrative receivership and as such falls within the exception of "Floating charges and receivers") engages the legislative consent process.
- Sections 16 to 19 and Schedule 13 extend to Northern Ireland only. Sections 18 and 19 and Schedule 13 make provision corresponding to that made by sections 14 and 15 and Schedule 12. Sections 16 and 17 make provision corresponding to provision already made for Great Britain. As these Northern Ireland provisions relate to insolvency, which is a transferred matter in relation to Northern Ireland, they engage the legislative consent process.
- Sections 20 to 27 extend to England and Wales and Scotland, and give power to the Secretary of State to temporarily amend aspects of company and insolvency law. Where such temporary amendments could be made by an Act of the Scottish Parliament, there is a requirement that Scottish Ministers are first consulted. Sections 25 to 27 extend also to Northern Ireland to enable the making of consequential amendments.
- Sections 28 to 36 extend to Northern Ireland and give power to amend aspects of company and insolvency law. Those are transferred matters in relation to Northern Ireland and, although it has been agreed by the Northern Ireland Executive that no Legislative Consent Motion (LCM) is required in relation to amendments of company law, the legislative consent process is engaged so far as the sections relate to insolvency law.
- The provisions in section 37 and Schedule 14 extend to England and Wales, Scotland and Northern Ireland. In relation to Wales, the provisions deal with reserved matters. In relation to Scotland, the provisions concern reserved matters except insofar as they apply to Charitable Incorporated Organisations and in respect of which it has been agreed that an LCM will be taken forward. In relation to Northern Ireland, company law is a transferred matter and so is within the legislative competence of the Northern Ireland Assembly, but it has been agreed by the Northern Ireland Executive that no LCM is required. The provisions also concern transferred matters insofar as they apply to certain mutual societies, being cooperatives, community benefit societies and credit unions, and in respect of which it has been agreed that an LCM will be taken forward. There are no Charitable Incorporated Organisations in Northern Ireland.
- The provisions in sections 38, 39 and 40 extend to England and Wales, Scotland and Northern Ireland. In relation to Northern Ireland, company law is a transferred matter and so within the legislative competence of the Northern Ireland Assembly, but it has been agreed with by the Northern Ireland Executive that no LCM is required.
- Section 41 extends to England and Wales and Scotland and creates the power to amend periods specified for the temporary insolvency provisions of the Act
- Section 42 extends to Northern Ireland and gives power to amend periods specified in certain Northern Ireland provisions of the Act relating primarily to insolvency. As insolvency law is a transferred matter, the section engages the legislative consent process.
- Section 43 extends to England and Wales, Scotland and Northern Ireland but just alters the procedure applicable for regulations made by the Secretary of State under powers in the new Part A1 of the Insolvency Act 1986 and new schedule ZA1 of that Act inserted by section 1, the Limited Liability Partnerships Act 2000 and the Charities Act 2011.
- Section 44 extends to England and Wales only and just alters the procedure applicable to regulations made by Welsh Ministers under powers in the new Part A1 of the Insolvency Act 1986 and new schedule ZA1 of that Act inserted by section 1 and under the Charities Act 2011.
- Section 45 extends to Scotland only and just alters the procedure applicable to regulations made by Scottish Ministers under powers in the new Part A1 of the Insolvency Act 1986 and new schedule ZA1 of that Act inserted by section 1.
- Section 46 extends to England and Wales, Scotland and Northern Ireland but just alters the procedure applicable in the Northern Ireland Assembly for regulations made by a Northern Ireland department under two of the powers in the new Part 1A of the Insolvency (Northern Ireland) Order 1989 inserted by section 4.
- Section 47 extends to England and Wales, Scotland and Northern Ireland but, as a power to make only consequential amendments of legislation, it does not engage the legislative consent process.
1 References in this Annex to a provision being within the legislative competence of the Scottish Parliament, the National Assembly for Wales or the Northern Ireland Assembly are to the provision being within the legislative competence of the relevant devolved legislature for the purposes of Standing Order No. 83J of the Standing Orders of the House of Commons relating to Public Business.
