The Insolvency Act 1986 (Disqualification from Parliament) Order 2012

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the Insolvency Act 1986 (c. 45) (“the 1986 Act”) to introduce new Parliamentary disqualification provisions for members subject to bankruptcy proceedings in Northern Ireland that are equivalent to the provisions applying in England and Wales.

Article 3 extends section 426A of the 1986 Act to Northern Ireland so that, on becoming subject to a bankruptcy restrictions order or interim order made by the Northern Ireland High Court, a person will be subject to Parliamentary disqualification provisions. It requires the Northern Ireland High Court to notify the Speaker of the House of Commons or House of Lords if it makes a bankruptcy restrictions order or interim order in respect of a member of that House. It also requires the Department of Enterprise, Trade and Investment to notify the Speaker of the House of Commons or House of Lords if it accepts a bankruptcy restrictions undertaking from a member of that House.

Article 4 extends section 426B of the 1986 Act to require the Northern Ireland High Court to notify the presiding officer of the Scottish Parliament or the National Assembly for Wales if it makes a bankruptcy restrictions order or interim order in respect of a member of that body. It also requires the Department of Enterprise, Trade and Investment to notify the presiding officer of the Scottish Parliament or the National Assembly for Wales if it accepts a bankruptcy restrictions undertaking from a member of that body.

Article 5 amends section 427 of the 1986 Act to remove the provisions dealing with disqualification from Parliament arising from bankruptcy proceedings in Northern Ireland.

Article 6 amends section 441 of the 1986 Act to extend sections 426A and 426B of the 1986 Act to Northern Ireland.

A regulatory impact assessment has not been prepared for this instrument as it has no impact on costs to business, charities or voluntary bodies.