(This note is not part of the Rules)
These Rules set out the procedure for the conduct of PPP administration proceedings. PPP administration is a special insolvency regime specifically created for the companies providing services under a public-private partnership agreement or “PPP agreement”, as defined by section 210(1) of the Greater London Authority Act 1999 (c.29) (“the 1999 Act”). These companies are defined as “PPP companies” by section 210(5) of the 1999 Act.
The framework for the PPP administration regime is set out in sections 220 to 224 of, and Schedules 14 and 15 to, the 1999 Act. Schedule 14 applies with modifications certain provisions of the Insolvency Act 1986 (c.45) including Part 2 of that Act which, prior to 15 September 2003, governed administration proceedings in relation to most companies. From that date, section 248 of the Enterprise Act 2002 (c.40) repealed Part 2 and replaced it with a new Schedule 1B to govern administration proceedings in relation to such companies. However, section 249 of the Enterprise Act 2002 effectively preserves Part 2 insofar as it applies to certain types of company, including PPP companies.
The PPP administration process is commenced by an application to court for a PPP administration order. Such an application can be made by the Mayor of London (or Transport for London acting as his agent).
A person appointed to manage the affairs, business and property of the PPP company is defined in paragraph 21(2) of Schedule 14 to the 1999 Act as a special PPP administrator.
These Rules are based upon the provisions of the Insolvency Rules 1986 (S.I. 1986/1925) but are a stand alone set of rules applicable only to PPP administration proceedings.
Part 1 of these Rules contains the construction and interpretation provisions.
Part 2 of these Rules sets out the procedure to be followed to initiate PPP administration proceedings, including the information which must be included in a petition for a PPP administration order and how much and to whom notice of that petition must be given. It also contains provisions on the notification and advertisement of a special PPP administrator’s appointment.
Part 3 of these Rules details the initial steps to be taken in PPP administration proceedings. These include the preparation of a statement of the PPP company’s affairs and the provision of information to creditors as to the special PPP administrator’s proposals.
Part 4 of these Rules governs the conduct of creditors’ and members’ meetings called by the special PPP administrator during PPP administration proceedings.
Part 5 of these Rules contains provisions relating to the special PPP administrator, including how his remuneration shall be fixed by the court and the procedures to be followed where the special PPP administrator resigns or dies.
Part 6 of these Rules contains general provisions detailing the court procedure and practice for PPP administration proceedings. In particular this Part sets out the general requirements for court applications made during a PPP administration, the cost assessment procedure for PPP administration proceedings and the appeals process to be used in PPP administration proceedings.
Part 7 of these Rules contains provisions for the use of proxies at creditors’ or members’ meetings held during a PPP administration, including the rights of inspection of such proxies and the procedure to be followed where a proxy-holder has a financial interest in the outcome of a resolution to be voted on at the meeting.
Part 8 of these Rules sets out the provision for the examination of persons where an application to court has been made by a PPP administrator under section 236 of the Insolvency Act 1986. Section 236 allows a special PPP administrator to apply to court for an order requiring certain persons to appear before the court to be questioned by the special PPP administrator about the PPP company.
Part 9 of these Rules contains miscellaneous provisions, including provisions relating to the punishment of contraventions of these Rules.
Part 10 of these Rules contains further interpretation and application provisions, including a transitional provision.
The Schedule to these Rules contains the forms that are to be used in PPP administration proceedings.
A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.