Cymraeg

‘Insolvency events’ in relation to a partnership

Section 121(4) & Regulation 5 of the Pension Protection Fund (Entry Rules) Regulations 2005

An insolvency event occurs in relation to a partnership where:

a an order for the winding up of the partnership is made or an administration is converted to a winding up by court order;

b sequestration is awarded on the estate of the partnership under section 12 of the Bankruptcy (Scotland) Act 1985 or the partnership grants a trust deed for its creditors;

c the nominee under Part 1 of the Insolvency Act 1986 either:
i (who is not the liquidator or administrator) submits a report to the court stating his opinion that meetings of the partnership and its creditors should be summoned to consider the proposals; or
ii (who is an administrator, liquidator or trustee) summons a meeting of the company and its creditors to consider the proposal;

d the members of the partnership file with the court documents and statements which begin a moratorium where the members propose a voluntary arrangement;

e the partnership enters administration.

Note: In the above, e will be amended by secondary legislation when the Insolvent Partnerships Order 1994 is amended to apply to partnerships the administration regime introduced by the Enterprise Act 2002.