Solon does not know this law's official route yet. The proposal is recorded all the same, and the route appears here once its source is added.
66 provisions
40 Interpretation
Paragraph 111 has effect as if—
(a) in sub-paragraph (1)—
(i) for “In this Schedule” there were substituted “In this Act”;
(ii) the following definitions were omitted—
(aa) “administrator”;
(bb) “holder of a qualifying floating charge”;
(cc) “market value”;
(dd) “the purpose of administration”; and
(ee) “unable to pay its debts”; and
(iii) at the appropriate places, the following definitions were inserted—
“the 1991 Act” means the Water Industry Act 1991,
;
“appropriate value” means the best price that could be reasonably available on a sale which is consistent with the achievement of the purposes of the special administration,
;
“company in special administration” means a company in respect of which a special administration order has effect,
;
“purposes of special administration” is to be construed in accordance with section 23(2) to (2B) of the 1991 Act,
;
“qualifying water supply licensee” is to be construed in accordance with section 23(6) of the 1991 Act,
;
“relevant authority” means—
in the case of a special administration order that relates to a company appointed under section 6(1) of the 1991 Act to be the water or sewerage undertaker for an area that is wholly or mainly in Wales, the Welsh Ministers, and
in any other case, the Secretary of State,
;
“special administration order” means an order of the kind described in section 23(1) of the 1991 Act,
;
“special administrator” has the meaning given by paragraph 1,
;
“supplementary authorisation” has the meaning given in paragraph 8 of Schedule 2A to the 1991 Act,
; and
“water industry company” means a company of a kind mentioned in section 23(1) of the Water Industry Act 1991.
.
(b) in sub-paragraph (1A), paragraphs (b) and (c) were omitted; and
(c) sub-paragraph (1B) were omitted.
Section 4A has effect as if, after subsection (5A), there were inserted—
(5B) If an application under subsection (3) relates to a company in special administration, the relevant authority and the Water Services Regulation Authority are entitled to be heard on the application.
.
Section 5 has effect as if, after subsection (4), there were inserted—
(4A) Where the company is in special administration, the court must not make an order or give a direction under subsection (3) unless—
(a) the court has given the relevant authority and the Water Services Regulation Authority a reasonable opportunity to make representations to it about the proposed order or direction, and
(b) the order or direction is consistent with the purposes of the special administration order.
.
Section 6 has effect as if—
(a) after subsection (2A), there were inserted—
(2B) Subject to this section, where a voluntary arrangement in relation to a company in special administration is approved at a meeting summoned under section 3, an application to the court may be made—
(a) by the relevant authority, or
(b) by the Water Services Regulation Authority, if it has the consent of the relevant authority,
on the ground that the voluntary arrangement is not consistent with the achievement of the purposes of the special administration.
; and
(b) in subsection (4), after “subsection (2A),” there were inserted “or (2B),”.
46 Floating charge holder not to appoint administrative receiver
Section 72A(3) has effect as if—
(a) before the definition of “holder of a qualifying floating charge in respect of a company’s property”, there were inserted—
“qualifying floating charge” means a charge created by an instrument that—
states that paragraph 14 of Schedule B1 to the Insolvency Act 1986 applies to the floating charge,
purports to empower the holder of the floating charge to appoint an administrator of the company,
purports to empower the holder of the floating charge to make an appointment which would be the appointment of an administrative receiver within the meaning given by section 29(2), or
purports to empower the holder of the floating charge in Scotland to appoint a receiver who on appointment would be an administrative receiver.
; and
(b) for the definition of “holder of a qualifying floating charge in respect of a company’s property” there were substituted—
“holder of a qualifying floating charge in respect of a company’s property” means a person who holds one or more debentures of the company secured—
by a qualifying floating charge which relates to the whole or substantially the whole of the company’s property,
by a number of qualifying floating charges which together relate to the whole or substantially the whole of the company’s property, or
by charges and other forms of security which together relate to the whole or substantially the whole of the company’s property and at least one of which is a qualifying floating charge,
.
The power to make rules under section 411 applies for the purpose of giving effect to provision made by or under sections 23 to 26 of the Water Industry Act 1991 as it applies for the purpose of giving effect to Parts A1 to 7 of the 1986 Act (and accordingly, as if references in that section to those Parts included references to those provisions).
Section 413(2) has effect as if—
(a) after “the purposes of provision made by”, there were inserted “or under”; and
(b) “or Schedule 3 to that Act” were omitted.
Schedule 1 has effect as if, in paragraph 21, for “Power” there were substituted “With the consent of the relevant authority or the Water Services Regulation Authority, power”.
Schedule 10 has effect as if—
(a) in the first column, the reference to “Sch B1, para 54(7)” were to “Sch B1, para 54(6)”; and
(b) in the corresponding row of the second column, for “Administrator failing to report creditors’ decision on revised proposal” there were substituted “Special administrator failing to report on revised proposal”.
54 Restrictions on voluntary winding up and insolvency proceedings
(1) The Water Industry Act 1991 is amended as follows.
(2) In section 26(1), for paragraph (b) substitute—
(b) an administrator may not be appointed in relation to the company, whether by court order or otherwise, under Schedule B1 to the Insolvency Act 1986;
(ba) any step taken by any person for the purported purpose of appointing an administrator of the company under Schedule B1 to the Insolvency Act 1986 has no legal effect;
.
Section 895 has effect as if, after subsection (2), there were inserted—
(2A) In this Part and in Part 26A—
“purposes of special administration” is to be construed in accordance with section 23(2) to (2B) of the Water Industry Act 1991,
“relevant authority” means—
in the case of a special administration order that relates to a company appointed under section 6(1) of the Water Industry Act 1991 to be the water or sewerage undertaker for an area that is wholly or mainly in Wales, the Welsh Ministers,
in any other case, the Secretary of State,
“special administration order” means an order of the kind described in section 23(1) of the Water Industry Act 1991, and
“special administrator” means a person appointed by the court under—
section 23(1) of the Water Industry Act 1991, or
Schedule B1 to the Insolvency Act 1986 as modified by regulations made under section 23(3A) of the Water Industry Act 1991,
to manage the affairs, business and property of a water industry company.
.
58 Court order for holding meeting of creditors or members
Section 896 has effect as if, for subsection (2), there were substituted—
(2) An application under this section may only be made by the special administrator.
.
Section 899 has effect as if, for subsection (2), there were substituted—
(2) An application under this section may only be made by the special administrator.
(2A) The special administrator must give notice of an application made under this section to—
(a) the relevant authority; and
(b) the Water Services Regulation Authority.
.
60 Powers of court to facilitate reconstruction or amalgamation
Section 900 has effect as if—
(a) after subsection (6), there were inserted—
(6A) Within a period of seven days beginning with the day on which an order is made under this section, the special administrator must send a copy of the order to—
(a) the relevant authority, and
(b) the Water Services Regulation Authority.
; and
(b) in subsection (7), after “with subsection (6)” there were inserted “or (6A)”.
Section 901C has effect as if, for subsection (2), there were substituted—
(2) An application under this section may only be made by the special administrator.
.
Section 901F has effect as if, for subsection (3), there were substituted—
(3) An application under this section may only be made by the special administrator.
(3A) The special administrator must give notice of an application made under this section to—
(a) the relevant authority, and
(b) the Water Services Regulation Authority.
.
63 Powers of court to facilitate reconstruction or amalgamation
Section 901J has effect as if—
(a) after subsection (6), there were inserted—
(6A) Within a period of seven days beginning with the day on which an order is made under this section, the special administrator must deliver a copy of the order to—
(a) the relevant authority, and
(b) the Water Services Regulation Authority.
; and
(b) in subsection (7), after “with subsection (6)” there were inserted “or (6A)”.
(1) These Regulations apply in relation to—
(a) special administration orders that have effect; and
(b) water industry companies that are in special administration
at any time after these Regulations come into force, including where such an order took effect, or such a company entered special administration, before then.
(2) For the purposes of paragraph (1)—
(a) a company enters special administration when the appointment of a special administrator of the company takes effect; and
(b) a “special administration order” means an order of the kind described in section 23(1) of the Water Industry Act 1991.
(1) The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 are amended as follows.
(2) In Schedule 1, paragraph 7 (special administration), omit sub-paragraphs (1) and (4).