HL Deb 23 October 1985 vol 467 cc1120-1

20 Clause 7, page 5, line 10, leave out 'gone into insolvent liquidation' and insert 'become insolvent'.

21 Page 5, line 17, leave out subsections (2) and (3).

22 Page 5, line 42, leave out subsection (5).

23 Page 6, line 11, at end insert— '(6A) Except with the leave of the court, an application for the making under this section of a disqualification order against any person shall not be made after the end of the period of two years beginning with the day on which the company of which that person is or has been a director became insolvent'.

24 Page 6, line 13, leave out from '(a)' to 'in' in line 16.

25 Page 6, line 18, at end insert—

  1. '(b) in the case of a person who is or has been a director of a company which is being wound up otherwise than as mentioned in paragraph (a) above, it appears to the liquidator;
  2. (c) in the case of a person who is or has been a director of a company in relation to which an administration order is in force, it appears to the administrator; or
  3. (d) in the case of a person who is or has been a director of a company of which there is an administrative receiver, it appears to that receiver.'

26 Page 6, line 20, leave out 'liquidator or, as the case may be, the official receiver' and insert 'official receiver, the liquidator, the administrator or, as the case may be, the administrative receiver'.

27 Page 6, line 24, leave out 'or former liquidator' and insert 'administrator or administrative receiver of a company or the former liquidator, administrator or administrative receiver'.

28 Page 6, line 29, leave out from 'director' to end of line 32.

Lord Lucas of Chilworth

My Lords, I beg to move that this House do agree with the Commons in their Amendments Nos. 20 to 28 en bloc. With the leave of the House, I will also speak to Amendments Nos. 29 to 32, 34 and 34A, 35, 415 and part of 440, 442, 525, 526, 527 and 550.

29 Page 6, line 36, leave out subsection (9) and insert— '(9) For the purposes of this section a company becomes insolvent if—

  1. (a) the company goes into liquidation at a time when its assets are insufficient for the payment of its debts 1121 and other liabilities and the expenses of the winding up;
  2. (b) an administration order is made in relation to the company; or
  3. (c) an administrative receiver of the company is appointed,
and references in this section to a person's conduct as a director of any company or companies include, where that company or any of those companies has become insolvent, references to that person's conduct in relation to any matter connected with or arising out of the insolvency of that company.'.

30 Page 7, line 3, at end insert— '(bb) in the case of a person who is or has been a director of a company in relation to which an administration order is in force, the court by which that order was made;'.

32 Page 7, line 7, leave out 'and 9' and insert 'to 9'.

32 Page 7, line 10, leave out subsection (12).

34 After Clause 8, insert the following new clause: 'Matters for determining unfitness of directors.—(1) Where it falls to a court to determine whether a person's conduct as a director of any particular company or companies makes him unfit as mentioned in section 7(1) or 8(2) above, the court shall, as respects his conduct as a director of that company or, as the case may be, each of those companies, have regard in particular—

  1. (a) to the matters mentioned in Part I of Schedule (Matters for determining unfitness of directors) to this Act; and
  2. (b) where the company has become insolvent, to the matters mentioned in Part II of that Schedule;
and references in that Schedule to the director and to the company shall be construed accordingly. (2) Subsection (9) of section 7 above applies for the purposes of this section and Schedule (Matters for determining unfitness of directors) to this Act as it applies for the purposes of that section. (3) Subject to subsection (4) below, any reference in Schedule (Matters for determining unfitness of directors) to this Act to any enactment contained in the 1985 Act or this Act shall include, in relation to any time before the coming into force of that enactment, a reference to the corresponding enactment in force at that time. (4) The Secretary of State may by order modify any of the provisions of Schedule (Matters for determining unfitness of directors) to this Act; and such an order may contain such transitional provisions as may appear to the Secretary of State necessary or expedient. (5) The power to make orders under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.'.