HL Deb 23 October 1985 vol 467 cc1220-1

148 Clause 54, page 39, leave out 'or under the 1985 Act'.

149 Page 39, line 27, leave out 'one-half and insert 'one-quarter'.

Lord Lucas of Chilworth

My Lords, I beg to move that this House do agree with the Commons in their Amendments Nos. 148 and 149.I should like to speak also to Amendments Nos. 151 to 153, 155, 159, 161, 163, 283, 290, 294, 474, 532 and 536.

151 Clause 56, page 41, line 12, leave out 'director'.

152 Clause 58, page 41, line 39, at end insert ': and the liquidator of a company who is not the official receiver shall summon such a meeting if he is requested, in accordance with the rules, to do so by one-tenth, in value, of the company's creditors'.

153 page 41, line 40, leave out subsection (3).

155 Clause 59, page 42, line 38, leave out 'one-half and insert 'one-tenth'.

159 Clause 63, page 45, line 42, leave out subsection (3).

161 Page 46, line 16, leave out 'one-half and insert 'one-quarter'.

163 Clause 64, page 47, line 15, leave out 'or by a general meeting of the company's contributories'.

283 Clause 123, page 100, line 6. leave out 'one-half and insert 'one-quarter'.

290 Clause 127. page 102, line 24, leave out 'one-half and insert 'one-quarter.

294 Clause 130. page 105. line 21, leave out subsection (4).

474 Schedule 5, page 180, line 28, at end insert— '35A. In section 651(1) (power of court, within two years of dissolution of company, to declare dissolution void), for the words "2 years" there shall be substituted the words "12 years".'.

532 Schedule 8, page 197, line 49, at end insert— '(2A) where a winding up by the court in England and Wales has commenced or is treated as having commenced before the coming into force of section 54 of this Act, the official receiver may, at any time when he is liquidator of the company apply to the Secretary of State for the appointment of a person as liquidator in place of the official receiver, and on any such application the Secretary of State shall either make an appointment or decline to make one.'.

536 Page 200, line 27, at end insert— 'Appointment of trustee by Secretary of State 12A. Where a person was adjudged bankrupt before the bankruptcy commencement date or is adjudged bankrupt on or after that date on a petition presented before that date, the official receiver may at any time when he is the trustee of the bankrupt's estate apply to the Secretary of State for the appointment of a person as trustee instead of the official receiver; and on any such application the Secretary of State shall either make an appointment or decline to make one.'.

All these amendments constitute a package dealing with various matters relating to the appointment of liquidators, trustees and their committees and the period within which the dissolution of a company can be declared void. Many of these amendments are quite simply drafting or technical in nature, but I should like to draw the attention of your Lordships to the following groups of amendments which deal with the ability of creditors to requisition meetings in insolvency proceedings. Amendments Nos. 149, 161, 283 and 290 reduce from one half to one quarter the proportion of creditors required to requisition meetings for the purpose of appointing or, in certain cases where an appointment has been made by the Secretary of State or the court, removing a liquidator or trustee in bankruptcy. These amendments were made by the Government in the light of comments made in another place that the proportion of 50 per cent. was too high and that it would in fact be unduly restrictive on the ability of creditors to requisition meetings.

Secondly, Amendments Nos. 153, 155 and 294 reduce from one-half to the normal one-tenth the value of creditors that is required to requisition a meeting to appoint a committee in insolvency proceedings. Amendment No. 153 relates to Clause 58, as regards winding up by the court in England and Wales, and Amendment No. 155 relates to Clause 59, regarding winding up by the court in Scotland. Amendment No. 294 is in respect of Clause 130 and bankruptcy proceedings in England and Wales.

Finally, Amendment No. 474 extends from two to 12 years the period within which a dissolution of a company under Section 651 of the Companies Act 1985 can be declared void by the court. This extension is aimed at protecting persons who may subsequently discover that they have a claim against the company, possibly for industrial injuries and for which they may need to revive the company so that it may be joined in any possible action against the company's insurers.

I hope that these amendments will find favour with your Lordships. Again, if any noble Lord wishes me to explain in more detail any amendments to which I have not addressed myself, then of course I shall be happy to do so. Meanwhile, I commend this group of amendments to your Lordships' House.

Moved, That this House do agree with the Commons in their Amendments Nos. 148 and 149. (Lord Lucas of Chilworth.)

On Question, Motion agreed to.