HC Deb 18 July 1985 vol 83 cc613-5

Amendments made:

No. 200, in page 188, line 28. at end insert '7 or'

"(477(2E) Failing to send to registrar of companies a certified copy of authorisation to dispose of certain property. Summary One-fifth of the statutory maximum One-fiftieth of the statutory maximum.".'.

No. 210, in page 191, leave out lines 5 and 6 and insert—

(3) For the entry relating to section 482(5) there shall be substituted the following entry—
"482(6) Failure to comply with obligation to submit statement of affairs to receiver. 1. On indictment A fine.
2. Summary The statutory maximum. One-tenth of the statutory maximum.".'.

No. 211, in page 191, line 24, leave out from beginning to 'after' in line 25 and insert— '(1) Section 518 (definition of inability to pay debts) shall be amended as follows.

No. 201, in page 189, line 25, at end insert— '10A. In section 426(6) (liability of officer or liquidator of company for default in connection with the circulation of information as to a compromise), after the word "liquidator" there shall be inserted the words "or administrator"'.

No. 202, in page 189, line 25, at end insert— '10B In section 478(6) [receiver to be appointed within one month of cessation of appointment of earlier receiver] at the end there shall be inserted the words— and for the purposes of calculating the period of one month under this subsection no account shall be taken of any period during which an administration order under Part II of the Insolvency Act 1985 is in force".'.

No. 203, in page 189, line 32, at end insert— '(1A) in subsection(1), after the words "secured by' there shall be inserted the words a charge which, as created, was".'

No. 204, in page 190, line 6, leave out 'For subsection (1) of and insert '(1)'.

No. 205, in page 190, line 7, after 'court)', insert ' 'shall be amended as follows. (2) For subsection (1)'.

No. 206, in page 190, line 14, at end insert— '(3) In subsection (3), after the word "provides)" there shall be inserted the words "and on any contract of employment adopted by him in the performance of those functions".

(4)After that subsection there shall be inserted the following subsections— (4) For the purposes of subsection (3)(a) the receiver or manager is not to be taken to have adopted a contract of employment by reason of anything done or omitted to be done within fourteen days after his appointment.

(5)Where at any time a receiver or manager so appointed vacates office—

  1. (a) his remuneration and any expenses properly incurred by him;
  2. (b) any indemnity to which he is entitled out of the assets of the company, shall be charged on and paid out of any property of the company which is in his custody or under his control at that time in priority to any charge or other securit) held by the person by or on whose behalf he was appointed." '

No. 207, in page 190, line 31, after 'substituted', insert' the words'.

No. 208, in page 190, line 47, at end insert'— ' 17A.—(1) Section 476(1) of the 1985 Act (distribution of monies) shall be amended as follows. (2) After the words "categories of persons" there shall be inserted the words "(which rights shall, except to the extent otherwise provided in any instrument, have the following order of priority)". (3) In paragraph (d), after the word "remuneration" there shall be inserted the words "and any indemnity to which the receiver is entitled out of the property of the company.".'.

No. 209, in page 191, line 2, at end insert— '(1A) After the entry relating to section 470(3) there shall be inserted the following entry— (2) in subsection(1)(a);.

No. 212, in page 191, line 26, at end insert—

'(3) In subsection (1) (d) for the words from "(and, in determining" onwards there shall be substituted the words "as they fall due".

(4) After subsection (1) there shall be inserted the following subsection— (1A) A company is also deemed unable to pay its debts if it is proved to the satisfaction of the court that the value of the company's assets is less than the amount of us liabilities, taking into account its cotingent and prospective liabilities.".

No. 213, in page 192, line 12, leave out 'the Insolvency Act 1985' and insert 'that Act'.

No. 214, in page 193, line 30, at end insert— `37A. After subsection (1) of section 625 (transactions in fraud of creditors) there shall be inserted the following subsection— (1A) A person shall not be guilty of an offence under this section—

  1. (a) by reason of conduct constituting an offence under subsection (1)(a) above which occurred more than five years before the commencement of the winding-up; or
  2. (b) if he proves that, at the time of the conduct constituting the offence, he had no intent to defraud the creditors of the company."
37B. In section 626(1)(d) (failure to inform liquidator that false debt has been proved), for the words "for the period of a month to inform the liquidator of it" there shall be substituted the words "to inform the liquidator as soon as practicable".'.

No. 215, in page 194, line 14, at end insert 'the words'.

No. 216, in page 194, line 36, at end insert— `46.—(1) In section 669 (inability of unregistered company to pay debts), at the end of paragraph (d) there shall be inserted the words "as they fall due".

(2) That section, as amended by sub-paragraph (1) above, shall be re-numbered as subsection (1) of that section and after that provision as so renumbered there shall be inserted the following subsection— (2) An unregistered company is also deemed unable to pay its debts if it is proved to the satisfaction of the court that the value of the company's assets is less than the amount of its liabilities, taking into account its contingent and prespective liabilities.".'.—[Mr. Fletcher.]

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