HL Deb 23 October 1985 vol 467 cc1199-200

80 Insert the following new Clause:—Before Clause 23, Statement of affairs to be submitted to administrator. '.—(1) Where an administration order has been made, the administrator shall forthwith require some or all of the persons mentioned in subsection (3) below to make out and submit to him a statement in the prescribed form as to the affairs of the company. (2) A statement submitted under this section shall be verified by affidavit by the persons required to submit it and shall show—

  1. (a) particulars of the company's assets, debts and liabilities;
  2. (b) the names and addresses of its creditors;
  3. (c) the securities held by them respectively;
  4. (d) the dates when the securities were respectively given; and
  5. (e) such further or other information as may be prescribed.
(3) The persons referred to in subsection (1) above are—
  1. (a) those who are or have been officers of the company;
  2. (b) those who have taken part in the company's formation at any time within one year before the date of the administration order;
  3. (c) those who are in the company's employment or have been in its employment within that year, and are in the administrator's opinion capable of giving the information required;
  4. (d) those who are or have been within that year officers of or in the employment of a company which is, or within that year was, an officer of the company;
 and in this subsection "employment" includes employment under a contract for services. (4) Where any persons are required under this section to submit a statement of affairs to the administrator, they shall do so (subject to subsection (5) below) before the end of the period of twenty-one days beginning with the day after that on which the prescribed notice of the requirement is given to them by the administrator. (5) The administrator, if he thinks fit, may—
  1. (a) at any time release a person from an obligation imposed on him under subsection (1) or (2) above; or
  2. (b) either when giving the notice mentioned in subsection (4) above, or subsequently, extend the period so mentioned;
 and where the administrator has refused to exercise a power conferred by this subsection, the court, if it thinks fit, may exercise it. (6) If a person without reasonable excuse fails to comply with any obligation imposed under this section, he shall be liable—
  1. (a) on summary conviction, to a fine not exceeding the statutory maximum and, for continued contravention, to a daily default fine not exceeding one-tenth of the statutory maximum;
  2. (b) on conviction on indictment, to a fine.'

Lord Cameron of Lochbroom

My Lords, I beg to move that this House do agree with the Commons in their Amendment No. 80. The purpose of this amendment is to amend what was Clause 24. This seeks to harmonise the provisions concerning the submission of a state of affairs to the administrator with those provisions relating to winding-up. Similar amendments to provisions for administrative receivers and receivers in Scotland will shortly be considered.

The clauses relating to the provision of information, which are common to all forms of insolvency, were drafted in different terms, although their substance was virtually the same. The amendments made in the other place were put down with the intention of placing the different clauses on the same footing.

Three minor consequential changes are made to the existing Clause 24 in the process of redrafting: first, the provision setting out the period for the submission of the statement of affairs is now located in the body of this clause relating to the statement of affairs. Previously it appeared in Clause 23(2). At the same time, modification has been made to this provision, providing the administrator with full discretion to extend the period for the submission of the statement subject to the ability of a person to appeal to the court if he refuses to do so. Secondly, the amendment enables the administrator to release a person from an obligation he has imposed on that person to supply information. Thirdly, the penalty for failure to supply information has been brought into line with Clause 50(7) of the Bill.

Moved, That this House do agree with the Commons in their Amendment No. 80.—(Lord Cameron of Lochbroom.)

On Question, Motion agreed to.