Commentary

21 Outline of the Insolvency Act 1986 Part I

BANKRUPTCY AND INSOLVENCY (CORPORATE INSOLVENCY) vol 3(3)
| Commentary

21 Outline of the Insolvency Act 1986 Part I

| Commentary

21 Outline of the Insolvency Act 1986 Part I

The Insolvency Act 1986 Part I as amended consists of 12 Sections (sections 1 to 7B) and has an accompanying schedule.

Section 1 of the 1986 Act1provides for the making of a proposal. The proposal must provide for a nominee to act either as a trustee or otherwise for the purpose of supervising its implementation. That person must be a person who is qualified to act as an insolvency practitioner in relation to the company2.

Section 1A of the 1986 Act (as inserted by the Insolvency Act 2000)3 provides for the directors of an eligible company (‘a small company’)4, if they so wish, to apply for a moratorium for the time it takes to summon meetings of creditors and members to consider, and if thought fit approve, a voluntary arrangement. The Insolvency Act 2000, together with the related Rules5, provided that the relevant provisions, as originally enacted in the Insolvency Act 1986 Part I and the Insolvency Rules 19866, did not apply at all in such a case, but were replaced by, respectively, Schedule A1 to the 1986 Act (which contains provisions about the moratorium) and rules 1.35 to 1.54 of the

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial