SCHEDULES

Section 121

SCHEDULE 6U.K.Conduct of FMI administration

1U.K.The following provisions of this Schedule provide for—

(a)the general powers and duties of FMI administrators (by application of provisions about administrators), and

(b)the general process and effects of FMI administration (by application of provisions about administration).

Commencement Information

I1Sch. 6 para. 1 in force at 13.7.2018 for E.W. by S.I. 2018/848, art. 2(b)

2U.K.The provisions set out in the Tables apply in relation to FMI administration as in relation to administration, with—

(a)the modifications set out in paragraph 3,

(b)any other modification specified in the Tables, and

(c)any other necessary modification.

Commencement Information

I2Sch. 6 para. 2 in force at 13.7.2018 for E.W. by S.I. 2018/848, art. 2(b)

3U.K.The modifications are that—

(a)a reference to the administrator is a reference to the FMI administrator,

(b)a reference to administration is a reference to FMI administration,

(c)a reference to an administration application is a reference to an FMI administration application,

(d)a reference to an administration order is a reference to an FMI administration order,

(e)[F1except where otherwise specified in Table 2,] a reference to a company is a reference to the infrastructure company, and

(f)a reference to the purpose of administration (other than the reference in paragraph 111(1) of Schedule B1) is a reference to the objective in section 115.

Textual Amendments

Commencement Information

I3Sch. 6 para. 3 in force at 13.7.2018 for E.W. by S.I. 2018/848, art. 2(b)

4U.K.Powers conferred by this Part of this Act and by the 1986 Act (as applied) are in addition to, and not in restriction of, any existing powers of instituting proceedings against any contributory or debtor of an infrastructure company, or the estate of any contributory or debtor, for the recovery of any call or other sum.

Commencement Information

I4Sch. 6 para. 4 in force at 13.7.2018 for E.W. by S.I. 2018/848, art. 2(b)

5U.K.A reference in an enactment or other document to anything done under a provision applied by this Part of this Act includes a reference to the provision as applied.

TABLE 1 OF APPLIED PROVISIONS

SCHEDULE B1 TO THE INSOLVENCY ACT 1986

Provision of Schedule B1SubjectModification
Para. 40(1)(a)Dismissal of pending winding-up petition
Para. 41Dismissal of administrative or other receiver
Para. 42Moratorium on insolvency proceedingsIgnore sub-paras. (4) and (5).
Para. 43Moratorium on other legal process
Para. 44(1)(a) and (5)Interim moratorium
Para. 46Announcement of appointmentIgnore sub-para. (6)(b) and (c).
Paras. 47 and 48Statement of affairs
Para. 49Administrator's proposals

(a)The administrator must obtain the approval of the Bank of England to any proposals under sub-para. (1).

(b)Treat the reference in sub-para. (2)(b) to the objective mentioned in para. 3(1)(a) or (b) as a reference to the objective in section 115 of this Act.

(c)Ignore sub-para. (3)(b).

Para. 59General powers
Para. 60 and Schedule 1General powersThe exercise of powers under Schedule 1 is subject to section 115 of this Act.
Para. 61Directors
Para. 62Power to call meetings of creditors
Para. 63Application to court for directions

(a)Before making an application in reliance on this paragraph the FMI administrator must give notice to the Bank of England, which is to be entitled to participate in the proceedings.

(b)In making directions the court must have regard to the objective in section 115 of this Act.

Para. 64Management powers
Para. 65Distribution to creditors
Para. 66Payments
Para. 67Taking custody of property
Para. 68Management

(a)Ignore sub-paras. (1) and (3).

(b)The Bank of England may apply to the court for the variation or revocation of any directions given by the court.

Para. 69Agency
Para. 70Floating charges
Para. 71Fixed charges
Para. 72Hire-purchase property
Para. 73Protection for secured and preferential creditors
Para. 74Challenge to administrator's conduct

For sub-para. (2) there is to be taken to be substituted—

“(2)Where a company is in FMI administration, a creditor or member of the company may apply to the court claiming that the FMI administrator is conducting himself or herself in a manner preventing the achievement of the objective of the FMI administration as quickly and efficiently as is reasonably practicable.”

Para. 75MisfeasanceIn addition to applications that may anyway be made under para. 75, an application may be made by the FMI administrator or the Bank of England.
Para. 79Court ending administration on application of administrator

For sub-paras. (1) to (3) there are to be taken to be substituted—

“(1)On an application made by a person mentioned in sub-paragraph (2), the court may provide for the appointment of an FMI administrator of a company to cease to have effect from a specified time.

(2)The persons who may apply to the court under sub-paragraph (1) are—

(a)the Bank of England;

(b)with the consent of the Bank, the FMI administrator.”

Para. 84Termination: no more assets for distribution
Para. 85Discharge of administration order
Para. 86Notice to Companies Registrar of end of administration
Para. 87ResignationAn FMI administrator may not resign under para. 87 without giving 28 days' notice of the intention to do so to the Bank of England.
Para. 88RemovalAn application for an order removing an FMI administrator from office may be made only by or with the consent of the Bank of England.
Para. 89DisqualificationThe notice under sub-para. (2) must be given to the Bank of England.
Paras. 90 and 91Replacement

(a)Para. 91(1) applies as if the only person who could make an application were the Bank of England.

(b)Ignore para. 91(2).

Para. 98DischargeIgnore sub-paras. (2)(b) [F2and (ba)] [F3, (3) and (3A)] .
Para. 99Vacation of office: charges and liabilities

In the application of sub-para. (3), payments may be made only—

(a)

in accordance with directions of the Bank of England, and

(b)

if the Bank is satisfied that they will not prejudice the objective in section 115 of this Act.

Paras. 100 to 103Joint administratorsAn application under para. 103 may be made only by the Bank of England.
Para. 104Validity
Para. 106 (and section 430 and Schedule 10)Fines
Paras. 107 to 109Extension of time limits
Para. 110Amendment of provisions about timeAn order under para. 110 may amend a provision of the Schedule as it applies by virtue of this Act (whether or not in the same way as it amends the provision as it applies otherwise).
Para. 111Interpretation
Paras. 112 to 116Scotland

TABLE 2 OF APPLIED PROVISIONS

OTHER PROVISIONS OF THE INSOLVENCY ACT 1986

SectionSubjectModification or comment
[F4Section 176ZB Application of proceeds of office-holder claims]
Section 233Utilities
Section 234Getting in company's property
Section 235Duty to co-operate with office-holder
Section 236Inquiry into company's dealings
Section 237Section 236: enforcement by court
Section 238Transactions at an undervalue (England and Wales)
Section 239Preferences (England and Wales)
Section 240Ss. 238 and 239: relevant time
Section 241Orders under ss. 238 and 239

(a)In considering making an order in reliance on section 241 the court must have regard to the objective in section 115 of this Act.

(b)Ignore subsections (2A)(a) and (3) to (3C).

Section 242Gratuitous alienations (Scotland)
Section 243Unfair preferences (Scotland)In considering the grant of a decree under subsection (5) the court must have regard to the objective in section 115 of this Act.
Section 244Extortionate credit transactions
Section 245Avoidance of floating charges
Section 246Unenforceability of liens
[F5Sections 246ZA to 246ZC Administration: penalisation of directors etc]
[F5Section 246ZD Power to assign certain causes of action]
[F6Sections 246ZE and 246ZF] [F6Decisions by creditors (company insolvency)]
[F6Section 246C] [F6Creditors’ ability to opt out of receiving certain notices]
[F6Section 248A] [F6Meaning of “opted-out creditor”]
Sections 386 and 387, and Schedule 6 (and Schedule 4 to the Pension Schemes Act 1993)Preferential debts
Section 389Offence of acting without being qualifiedTreat references to acting as an insolvency practitioner as references to acting as an FMI administrator.
[F7Sections 390 to 391T Authorisation and regulation of insolvency practitioners

(a) In section 390 treat references to acting as an insolvency practitioner as references to acting as an FMI administrator.

(b) For subsection (2) of that section there is to be taken to be substituted—

“(2) A person is not qualified to act as an FMI administrator at any time unless at that time the person is fully authorised to act as an insolvency practitioner or partially authorised to act as an insolvency practitioner only in relation to companies.”.

(c) An order under section 391 has effect in relation to any provision applied for the purposes of FMI administration.

(d) In sections 390A, 390B(1) and (3), 391O(1)(b) and 391R(3)(b), in a reference to authorisation or permission to act as an insolvency practitioner in relation to (or only in relation to) companies the reference to companies has effect without the modification in paragraph 3(e) of this Schedule.

(e) In sections 391Q(2)(b) and 391S(3)(e) the reference to a company has effect without the modification in paragraph 3(e) of this Schedule.]

Sections 423 to 425Transactions defrauding creditorsIn considering granting leave under section 424(1) or making an order in reliance on section 425, the court must have regard to the objective in section 115 of this Act.
Sections 430 to 432 and Schedule 10Offences

Textual Amendments

Commencement Information

I5Sch. 6 para. 5 in force at 13.7.2018 for E.W. by S.I. 2018/848, art. 2(b)

6(1)The Treasury may by order amend this Schedule so as to make further modifications.U.K.

(2)The further modifications that may be made are confined to such modifications of—

(a)the 1986 Act, or

(b)other enactments passed or made before this Act that relate to insolvency or make provision by reference to anything that is or may be done under the 1986 Act,

as the Treasury consider appropriate in relation to any provision made by or under this Part of this Act.

(3)An order under this paragraph may also make modifications of the provisions of this Schedule.

Commencement Information

I6Sch. 6 para. 6 in force at 1.3.2014 for specified purposes by S.I. 2014/377, art. 2(1)(b), Sch. Pt. 2

I7Sch. 6 para. 6 in force at 13.7.2018 for E.W. in so far as not already in force by S.I. 2018/848, art. 2(b)