Statutory Rule 2002 No. 334

      Insolvency (Northern Ireland) Order 1989 (Amendment No. 2) Regulations (Northern Ireland) 2002


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STATUTORY RULES OF NORTHERN IRELAND


2002 No. 334

INSOLVENCY

COMPANIES AND INDIVIDUALS

Insolvency (Northern Ireland) Order 1989 (Amendment No. 2) Regulations (Northern Ireland) 2002

  Made 5th November 2002 
  Coming into operation 5th December 2002 

The Department of Enterprise, Trade and Investment being a Department designated[1] for the purposes of section 2(2) of the European Communities Act 1972[2] in relation to insolvency, in exercise of the powers conferred upon it by the said section 2(2) and of every other power enabling it in that behalf, hereby makes the following Regulations:

Citation and commencement
     1. These Regulations may be cited as the Insolvency (Northern Ireland) Order 1989 (Amendment No. 2) Regulations (Northern Ireland) 2002 and shall come into operation on 5th December 2002.

Interpretation
    
2.  - (1) In these Regulations "the Order" means the Insolvency (Northern Ireland) Order 1989[3].

    (2) The Interpretation Act (Northern Ireland) 1954[4] shall apply to these Regulations as it applies to an Act of the Northern Ireland Assembly.

Amendments to the Insolvency (Northern Ireland) Order 1989
     3. The Order shall be amended as provided in regulations 4 to 16.

Modified definition of property
    
4. After Article 2 (general interpretation) insert -

Amendment to Article 3
    
5. After Article 3(5) (acting as an insolvency practitioner) add -

Amendment to Article 6
    
6. After Article 6(2) (meaning of "goes into liquidation") add -

Amendment to Article 14
    
7. After Article 14(3) (persons who may propose a voluntary arrangement) add -

Amendment to Article 21
    
8. After Article 21(6) (power of High Court to make administration order) add -

Amendment to Article 104
    
9. In Article 104(1) (application for winding up) after "contributory or contributories" insert -

Amendment to Article 185
    
10. In Article 185(3) (winding up of unregistered companies) at the end add -

Amendment to Article 189
    
11. In Article 189 (winding up of dissolved company incorporated outside Northern Ireland) (which becomes paragraph (1)) at end add -

Amendment to Article 204
    
12. In Article 204(3) (relevant time for purpose of transaction at undervalue or preference) after sub-paragraph (a) (and before the word "and") insert -

Amendment to Article 238
    
13. After Article 238(1)(b) (who may present a bankruptcy petition) insert -

Amendment to Article 239
    
14. After Article 239(2) (conditions to be satisfied in respect of debtor) add -

Amendment to Article 303
    
15. After Article 303(5) (final distribution) insert -

Amendments to Article 347
    
16. In Article 347(3) (relevant date in relation to preferential debts) -



Sealed with the Official Seal of the Department of Enterprise, Trade and Investment on


5th November 2002.

L.S.


Michael J. Bohill
A Senior Officer of the Department of Enterprise, Trade and Investment


EXPLANATORY NOTE

(This note is not part of the Regulations.)


These Regulations make amendments to the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)) ("the Order") as a result of the adoption by the Council of the European Union of Council Regulation (EC) No. 1346/2000 of 29th May 2000 on insolvency proceedings (O.J. No. L160, 30.06.00, p. 1) ("the EC Regulation") which came into force on 31st May 2002.

The EC Regulation aims to provide for the efficient and effective functioning of cross-border insolvency proceedings in the European Union.

These Regulations provide amendments to the Order to ensure that provisions of domestic law do not conflict with the EC Regulation and generally to provide for it.

The Regulations amend the Order by -

    (a) modifying the definition of "property" in the Order (regulation 4);

    (b) providing that companies in relation to which UK courts may open proceedings under the EC Regulation may take advantage of various procedures under the Order (regulations 7, 8 and 10);

    (c) allowing temporary administrators appointed by courts in other member States of the European Union and liquidators appointed in main proceedings to present winding up petitions and bankruptcy petitions (regulations 9 and 13);

    (d) clarifying the jurisdiction of the High Court (regulation 11); and

    (e) making it clear that the conditions which must be satisfied in order to enable a person to present a bankruptcy petition are subject to the EC Regulation (regulation 14).

The Regulations also contain other technical amendments (regulations 5, 6, 12, 15 and 16).


Notes:

[1] S.I. 2001/3495back

[2] 1972 c. 68back

[3] S.I. 1989/2405 (N.I. 19); Article 3(3) was modified by the Insolvent Partnerships Order (Northern Ireland) 1995, (S.R. 1995 No. 225), Article 14; Article 21 was amended by the Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001, (S.I. 2001/3649); Article 104(1) was amended by the Criminal Justice (Northern Ireland) Order 1994, (S.I. 1994/2795 (N.I. 15)), Article 26(1) and Schedule 2, paragraph 16; Article 104(5) was amended by the Companies (No. 2) (Northern Ireland) Order 1990, (S.I. 1990/1504 (N.I. 10)) Article 8; Articles 359, 364 and 365 were amended, and the definition of "EC Regulation" was inserted in Article 2 by the Insolvency (Northern Ireland) Order 1989 (Amendment) Regulations (Northern Ireland) 2002, (S.R. 2002 No. 223)back

[4] 1954 c. 33 (N.I.)back



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