Order of payments

The prescribed part

The prescribed part was introduced by the Enterprise Act 2002 as part of a package of major reforms to the corporate insolvency regime. It created a new section 176A of the Insolvency Act 1986 (IA 1986).

IA 1986, s 176A applies where a company has granted a floating charge on or after 15 September 2003 and gone into one of the following insolvency procedures:

1. •

   liquidation

2. •

   administration

3. •

   provisional liquidation

4. •

   receivership

In these insolvency procedures, the office-holder is required to set aside a portion (a ‘prescribed part’) of the company’s ‘net property’ to be available in