Announcement of Sri Lanka Expands Mahaweli Ganga Irrigation Program on June 11, 1984

The Insolvency Act 1986 is amended as provided in this Schedule.

After section 1 there is inserted—

In section 2(1) (procedure where nominee is not the liquidator or administrator), at the end there is added “ and the directors do not propose to take steps to obtain a moratorium under section 1A for the company ”.

Before Schedule 1 there is inserted—

In section 27(3)(a) (protection of interests of creditors and members when administration order in force), “section 4 in” is omitted.

In section 122(1) (grounds on which company may be wound up by the court), after paragraph (f) there is inserted—.

In section 124 (application for winding up of company), after subsection (3) there is inserted—.

Section 233 (conditions which may be imposed on supply of gas, water, electricity, etc.) is amended as follows. In subsection (1)— In subsection (4)—

In section 387 (date which determines existence and amount of preferential debt), after subsection (2) there is inserted—

After section 417 there is inserted—

In section 432(4) (offences by bodies corporate), at the end there is inserted “ and those under paragraphs 16(2), 17(3)(a), 18(3)(a), 19(3)(a), 22(1) and 23(1)(a) of Schedule A1 ”.

Sch. A1, para. 9(2). Directors failing to notify nominee of beginning of moratorium. 1. On indictment. 2. Summary. 2 years or a fine, or both. 6 months or the statutory maximum, or both. Sch. A1, para. 10(3). Nominee failing to advertise or notify beginning of moratorium. Summary. One-fifth of the statutory maximum. Sch. A1, para. 11(2). Nominee failing to advertise or notify end of moratorium. Summary. One-fifth of the statutory maximum. Sch. A1, para. 16(2). Company and officers failing to state in correspondence etc. that moratorium in force. Summary. One-fifth of the statutory maximum. Sch. A1, para. 17(3)(a). Company obtaining credit without disclosing existence of moratorium. 1. On indictment. 2. Summary. A fine. The statutory maximum. Sch. A1, para. 17(3)(b). Obtaining credit for company without disclosing existence of moratorium. 1. On indictment. 2. Summary. 2 years or a fine, or both. 6 months or the statutory maximum, or both. Sch. A1, para. 18(3)(a). Company disposing of property otherwise than in ordinary way of business. 1. On indictment. 2. Summary. A fine. The statutory maximum. Sch. A1, para. 18(3)(b). Authorising or permitting disposal of company property. 1. On indictment. 2. Summary. 2 years or a fine, or both. 6 months or the statutory maximum, or both. Sch. A1, para. 19(3)(a). Company making payments in respect of liabilities existing before beginning of moratorium. 1. On indictment. 2. Summary. A fine. The statutory maximum. Sch. A1, para. 19(3)(b). Authorising or permitting such a payment. 1. On indictment. 2. Summary. 2 years or a fine, or both. 6 months or the statutory maximum, or both. Sch. A1, para. 20(9). Directors failing to send to registrar office copy of court order permitting disposal of charged property. Summary. One-fifth of the statutory maximum. Sch. A1, para. 22(1). Company disposing of charged property. 1. On indictment. 2. Summary. A fine. The statutory maximum. Sch. A1, para. 22(2). Authorising or permitting such a disposal. 1. On indictment. 2. Summary. 2 years or a fine, or both. 6 months or the statutory maximum, or both. Sch. A1, para. 23(1)(a). Company entering into market contract, etc. 1. On indictment. 2. Summary. A fine. The statutory maximum. Sch. A1, para. 23(1)(b). Authorising or permitting company to do so. 1. On indictment. 2. Summary. 2 years or a fine, or both. 6 months or the statutory maximum, or both. Sch. A1, para. 25(6). Nominee failing to give notice of withdrawal of consent to act. Summary. One-fifth of the statutory maximum. Sch. A1, para. 34(3). Nominee failing to give notice of extension of moratorium. Summary. One-fifth of the statutory maximum. Sch. A1, para. 41(2). Fraud or privity to fraud in anticipation of moratorium. 1. On indictment. 2. Summary. 7 years or a fine, or both. 6 months or the statutory maximum, or both. Sch. A1, para. 41(3). Fraud or privity to fraud during moratorium. 1. On indictment. 2. Summary. 7 years or a fine, or both. 6 months or the statutory maximum, or both. Sch. A1, para. 41(7). Knowingly taking in pawn or pledge, or otherwise receiving, company property. 1. On indictment. 2. Summary. 7 years or a fine, or both. 6 months or the statutory maximum, or both. Sch. A1, para. 42(1). False representation or fraud for purpose of obtaining or extending moratorium. 1. On indictment. 2. Summary. 7 years or a fine, or both. 6 months or the statutory maximum, or both.

The Insolvency Act 1986 is amended as follows.

In section 1(2) (proposal for a voluntary arrangement), for “in relation to the company” there is substituted “ or authorised to act as nominee, in relation to the voluntary arrangement ”.

In section 2 (procedure where nominee is not the liquidator or administrator)—

In section 4(2) (decisions of meetings), for “in relation to the company” there is substituted “ or authorised to act as nominee, in relation to the voluntary arrangement ”.

After section 4 there is inserted—

In section 5 (effect of approval of voluntary arrangement)—

Section 6 (challenge of decisions) is amended as follows. In subsection (1)(a), for “approved at the meetings summoned under section 3” there is substituted “ which has effect under section 4A ”. In subsection (2), after paragraph (a) there is inserted—. In subsection (3)— In subsection (4)(a)— In subsection (5), for “approval given at the previous meetings” there is substituted “ decision approving the voluntary arrangement which has effect under section 4A ”. In subsection (6), for the words from “since” to the end there is substituted “ under the voluntary arrangement since it took effect ”. In subsection (7), for “an approval given” there is substituted “ a decision taken ”.

After that section there is inserted—

In section 7 (implementation of proposal)—

After that section there is inserted—

In section 387(2)(b) (date which determines existence and amount of preferential debt), for the words following “date” there is substituted “ on which the voluntary arrangement takes effect ”.

6A(1). False representation or fraud for purpose of obtaining members’ or creditors’ approval of proposed voluntary arrangement. 1. On indictment. 2. Summary. 7 years or a fine, or both. 6 months or the statutory maximum, or both.

The Authoritymay appoint one or more competent persons to investigate and report on any matter reported to the Authority under section 7A(2) of the Insolvency Act 1986; and section 55 of the Building Societies Act 1986 (investigations) applies to such a person and the investigations as it applies to a person appointed under section 55(1) and an investigation under that section. Section 57(5) to (5B) of that Act (use in evidence of answers given to questions) applies to answers given under section 55(3) as extended by sub-paragraph (1) as it applies to answers given under section 57.

Schedule 15A to the Building Societies Act 1986 (application of companies insolvency legislation to building societies) is amended as follows. In paragraph 1(2)(a), after “Parts I” there is inserted “ (except section 1A) ”. and subsection (1) of section 2 shall have effect with the omission of the words from “and the directors” to the end. After paragraph 9 there is inserted—

The Company Directors Disqualification Act 1986 is amended in accordance with this Part.

In section 1(3) (disqualification orders), after “an order” there is inserted “ or to a disqualification undertaking ” and after “those orders” there is inserted “ or, as the case may be, in the order and the undertaking ”.

In section 2(1) (disqualification on conviction of indictable offence), for the words following “a company” there is substituted “ with the receivership of a company’s property or with his being an administrative receiver of a company ”.

In section 4 (disqualification for fraud, etc., in winding up), in subsection (1)(b), for “or receiver or manager of its property” there is substituted “ receiver of the company’s property or administrative receiver of the company ” and for “receiver or manager” (in the second place) there is substituted “ receiver or administrative receiver ”.

In section 6 (disqualification of unfit directors)—

In section 7 (applications to court under section 6; reporting provisions)—

In section 9 (matters for determining unfitness of directors)—

In section 13 (criminal penalties)—

In section 14(1) (offences by body corporate), after “disqualification order” there is inserted “ or disqualification undertaking or in contravention of section 12A ”.

Section 15 (personal liability for company’s debts where person acts while disqualified) is amended as follows. In subsection (1)— In subsection (5), after “disqualification order” there is inserted “ or disqualification undertaking or a disqualification order under Part II of the Companies (Northern Ireland) Order 1989 ”.

In section 16 (application for disqualification order), in subsection (2), for “5” there is substituted “ 4 ”.

For section 17 (application for leave under an order) there is substituted—

Section 18 (register of disqualification orders) is amended as follows. In subsection (1)— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In subsection (3)— After subsection (4) there is inserted— For the sidenote there is substituted “ Register of disqualification orders and undertakings ”.

Section 21 (interaction with Insolvency Act 1986) is amended as follows. In subsection (2)— In subsection (3)—

Section 22 (interpretation) is amended as follows. At the end of subsection (3) there is inserted “ and references to acting as an insolvency practitioner are to be read in accordance with section 388 of that Act ”. In subsection (4), the words following “called” are omitted.