The Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) (Amendment) (No. 2) Order 2020

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends Part 1A of Schedule 1 and Schedule 2A to the Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) Order 2014 (S.I. 2014/229) (“the 2014 Order”).

Part 1A of Schedule 1 was inserted by the Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) (Amendment) and Consequential Amendments Order 2020 (S.I. 2020/744) (“the 2020 Order”). Part 1A of Schedule 1 made modifications to Part A1 of the Insolvency Act 1986 (c. 45), as it was applied to co-operative and community benefit societies by article 2 of the 2014 Order (as inserted by article 7(b) of the 2020 Order).

Schedule 2A was inserted by the 2020 Order. Schedule 2A made modifications to Part 26A of the Companies Act 2006 (c. 46), as it was applied to relevant societies by article 2(4) of the 2014 Order (as inserted by article 7(c) of the 2020 Order).

Regulation 2 omits paragraph 1J of Part 1A of Schedule 1. Paragraph 1J made a modification omitting section A55 of the Insolvency Act 1986, which provides that the Secretary of State may make regulations making different provision for different purposes, and consequential and other provisions. The effect of omitting paragraph 1J is that section A55 applies, by virtue of article 2 of the 2014 Order.

Regulation 2 also omits paragraph 6 of Schedule 2A. Paragraph 6 made a modification omitting section 901I of the Companies Act 2006, which provides that the Secretary of State may make regulations providing that the Board of the Pension Protection Fund may exercise any rights under Part 26A of the Companies Act 2006 in the circumstances set out in that section. The effect of omitting paragraph 6 is that section 901I applies, by virtue of article 2(4) of the 2020 Order, to relevant societies.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.