5.—(1) Paragraph 1 of Schedule 1 (application of the Insolvency Act 1986 to CIOs) is amended as follows.
(2) Sub-paragraph (2)(a) is amended as follows—
(a)before sub-paragraph (i) insert—
“(ai)sections A5, A15, A27 and A49 to A51;”;
(b)after sub-paragraph (iii) insert—
“(iiia)paragraphs 3 to 18 and 20 to 22 of Schedule ZA1;”;
(c)omit sub-paragraph (iv).
(3) In sub-paragraph (5), in substituted section 122(1) omit paragraph (d).
(4) In the table in sub-paragraph (7)—
(a)in the entry relating to section 4A (approval of arrangement), for the second column substitute “Omit subsections (5) and (5A).”;
(b)at the appropriate place insert—
| “Section A3 (Obtaining moratorium by filing documents) | Omit subsection (1)(b). |
| Section A7 (Beginning of moratorium) | Omit subsection (1)(c). |
| Section A9 (End of moratorium) | In subsection (3) omit “section A15 (extension by court in course of other proceedings).”. |
| Section A16 (Entry into insolvency procedure etc) | Omit subsections (1)(a) and (2). |
| Section A17 (Obligation to notify change in end of moratorium) | In subsection (1) omit entry 8 of the table. |
| Section A20 (Restrictions on insolvency proceedings etc) | |
| Subsection (1) | Omit paragraph (b) and for paragraph (c) substitute: “(c)a resolution for voluntary winding up under section 84(1) may be passed only if the resolution is recommended by the charity trustees,”. |
| Subsection (3) | For subsection (3) substitute: “(3) For these purposes, “excepted petition” means a petition presented by the Attorney General or the Charity Commission under section 113 of the Charities Act 2011.”. |
| Section A21 (Restrictions on enforcement and legal proceedings) | Omit subsection (1)(b). |
| Section A22 (Floating charges) | In subsection (7) for “as defined by section A27”, in each place it occurs, substitute “as defined by section A31”. |
| Section A24 (Duty of directors to notify monitor of insolvency proceedings etc) | For subsection (2) substitute: “(2) The charity trustees must notify the monitor if, during a moratorium for the CIO, they recommend a resolution for voluntary winding up be passed under section 84(1).”. |
| Section A25 (Restrictions on obtaining credit) | In subsection (2)(b) omit “(in Scotland, hired)”. |
| Section A26 (Restrictions on grant of security) | Omit subsection (6). |
| Section A31 (Disposal of charged property free from charge) | |
| Subsection (11) | Omit “(as defined by section A27)”. |
| New subsection (12) | After subsection (11) insert: “(12) In this section— “collateral security” has the same meaning as in the Financial Markets and Insolvency (Settlement Finality) Regulations 1999(1); “financial collateral arrangement” has the same meaning as in the Financial Collateral Arrangements (No.2) Regulations 2003(2); “market charge” has the same meaning as in Part 7 of the Companies Act 1989(3); “system-charge” has the meaning given by the Financial Markets and Insolvency Regulations 1996(4).”. |
| Section A32 (Disposal of hire-purchase property) | Omit subsection (7). |
| Section A42 (Challenge to monitor’s actions) | In subsection (2)(a) for “creditor, director or member” substitute “creditor or director”. |
| Section A43 (Challenges to monitor remuneration in insolvency proceedings) | In subsection (2)(c) omit “(or, in Scotland, the expenses)”. |
| Section A44 (Challenges to charity trustees’ actions) | In subsection (1) omit “or member”, and “or members” in both places. |
| Section A48 (Prosecution of delinquent officers of CIO) | |
| Subsection (3) | Omit paragraphs (b) and (c). |
| Subsection (4) | At end insert “as if the CIO were a company.”. |
| Subsection (8) | Omit paragraph (b). |
| Subsection (10) | Omit “, the Lord Advocate”. |
| Section A52 (Void provisions in floating charge documents) | In subsection (4) for “as defined by section A27”, in each place it occurs, substitute “as defined by section A31”. |
| Section A54 (Interpretation) | |
| Subsection (1) | In the definition of “unable to pay its debts” omit paragraph (b). |
| Subsection (3) | Omit subsection (3). |
| Section A55 (Regulations) | In subsection (2) omit “, unless they are made by the Scottish Ministers”.”; |
(c)in the entry relating to section 432(4) (offences by bodies corporate), for the second column substitute “Omit the words “A27(1)” and “51, 53, 54, 62, 64, 66,””;
(d)at the appropriate place insert—
| “SCHEDULE ZA1 (Eligible CIOs) | |
| Paragraph 1 | Omit the references to paragraphs 3 to 18. |
| Paragraph 2 | For sub-paragraph (4) substitute: “(4) In sub-paragraph (3)(g) “relevant petition” means a petition presented by the Attorney General or the Charity Commission under section 113 of the Charities Act 2011.”.”; |
(e)omit the entries relating to Schedule A1 (moratorium where directors propose voluntary arrangements);
(f)in the entry relating to Schedule 10 (punishment of offences), in the second column, after “table,” insert “omit the entries relating to sections A27 and A48, and”.
S.I. 1999/2979, amended by S.I. 2010/2993.
1989 c. 40, section 173(1), amended by S.I. 1991/880, regulation 9, S.I. 2017/1064, regulation 3(1), 19(a)(i), (ii), 19(b).