§ Mr. Woodasked the Secretary of State for Trade and Industry if he will make known his intentions for the implementation of the Insolvency Act 1985.
§ Mr. HowardIn exercise of the powers given to him by section 236 of the Insolvency Act 1985 the Secretary of State intends to make a number of commencement orders during the course of next year to effect the staged introduction of the new legislation.
Of the main provisions in the Act those relating to the disqualification and personal liability of directors will be brought into force in April 1986. We shall then start to set up the machinery for dealing with applications from insolvency practitioners for licences. Such licensing, including the ban on unlicensed practice, will take effect in December 1986 when the administrator procedure and all the other new and revised insolvency procedures relating to receivership, voluntary arrangements, winding-up and bankruptcy will be brought into force. The Department is about to begin consultations with insolvency practitioners and interested bodies on the proposed contents of rules and other secondary legisation without which those procedures cannot work. In addition, in April 1986 the Government intend to introduce a Bill to consolidate with the Insolvency Act 1985 the parts of the Companies Act 1985 that relate to receivership and winding-up. These parts have already been substantially amended by the Insolvency Act 1985 and we consider that their consolidation with the provisions in that Act will greatly aid coherent understanding of the legislation and related rules and will facilitate its better operation.