Finance Bill 2002
Amendment: 132
Page: 299
Line: 41
Mr Andrew Smith (Labour, Oxford East)
132
Schedule 25, page 299, line 41, leave out ?Article 21? and insert ?Part 3?.
EXPLANATORY NOTE
SUMMARY
1. The purpose of the amendment is to align a reference to the Insolvency (Northern Ireland) Order 1989 with one to the Insolvency Act 1986.
DETAILS OF THE AMENDMENT
2. The amendment substitutes ?Part 3? for ?Article 21? in paragraph 6A(1)(b) Schedule 9 FA 1996 (inserted by paragraph 25 of Schedule 25 to the Bill).
BACKGROUND
3. Paragraph 6A as a whole provides a relief for companies entering various types of insolvency proceedings. An earlier draft of paragraph 6A(1)(b), which was exposed for consultation in December 2001, referred to section 8 of the Insolvency Act 1986 to define when a company was in administration. The Enterprise Bill, as introduced in the House of Commons earlier this year, proposes to amend Part 2 of the Insolvency Act which deals with administration, and will, if enacted in its current form, replace the existing section 8. In anticipation of this change, the reference in paragraph 6A(1)(b) to section 8 was generalised to refer to Part 2.
4. The same generalisation was not made to the reference to the Insolvency (Northern Ireland) Order. The administration rules are in Part 3 of that Order, so, to anticipate a possible change when the Enterprise Bill becomes law in Great Britain, the reference to administration in Northern Ireland is also being generalised.