Water Act 1989 (c. 15)

(The document as of February, 2008)

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(7) References in this paragraph to any foreign property, right or liability are references to any property, right or liability as respects which any issue arising in any proceedings would have to be determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom.

(8) Any expenses incurred by a water authority in consequence of any provision included by virtue of this paragraph in a scheme under this Schedule shall be met, in such proportions as may be determined by or under the scheme, by the water authority's successor company and the Authority.

Section 5.

SCHEDULE 3 The Director General of Water Services

Remuneration, pensions etc.

1 (1) There shall be paid to the Director such remuneration, and such travelling and other allowances, as the Secretary of State may determine.

(2) In the case of any such holder of the office of the Director as may be determined by the Secretary of State, there shall be paid such pension, allowances or gratuities to or in respect of him, or such payments towards provision for the payment of a pension, allowances or gratuities to or in respect of him, as may be so determined.

(3) If, when any person ceases to hold office as the Director, the Secretary of State determines that there are special circumstances which make it right that he should receive compensation, there may be paid to him a sum by way of compensation of such amount as may be determined by the Secretary of State.

(4) The approval of the Treasury shall be required for the making of a determination under this paragraph.

Staff

2 (1) The Director may, with the approval of the Treasury as to numbers and terms and conditions of service, appoint such staff as he may determine.

(2) Anything authorised or required by or under any enactment to be done by the Director may be done by any member of the staff of the Director who has been authorised for the purpose, whether generally or specially, by the Director.

Expenses of the Director and his staff

3 There shall be paid out of money provided by Parliament--

(a) the remuneration of, and any travelling or other allowances payable under this Act to, the Director and any staff of the Director;

(b) any sums payable under this Act to or in respect of the Director; and

(c) any expenses duly incurred by the Director or by any of his staff in consequence of the provisions of this Act.

Official seal

4 The Director shall have an official seal for the authentication of documents required for the purposes of his functions.

Documentary evidence

5 The [1868 c. 37.] Documentary Evidence Act 1868 shall have effect as if the Director were included in the first column of the Schedule to that Act, as if the Director and any person authorised to act on behalf of the Director were mentioned in the second column of that Schedule, and as if the regulations referred to in that Act included any document issued by the Director or by any such person.

The Parliamentary Commissioner

6 In the [1967 c. 13.] Parliamentary Commissioner Act 1967, in Schedule 2 (departments and authorities subject to investigation), there shall be inserted (at the appropriate place) the following entry--

" Office of the Director General of Water Services. "

Parliamentary disqualification etc.

7 In the [1975 c. 24.] House of Commons Disqualification Act 1975, in Part III of Schedule 1 (other disqualifying offices), there shall be inserted (at the appropriate place) the following entry--

" Director General of Water Services. "

and the like insertion shall be made in Part III of Schedule 1 to the [1975 c. 25.] Northern Ireland Assembly Disqualification Act 1975.

Section 6.

SCHEDULE 4 Customer Service Committees

Sub-committees

1 A customer service committee may, with the approval of the Director --

(a) establish local and other sub-committees through which the customer service committee may carry out such of its functions as it may determine;

(b) appoint such persons as it may determine (including persons who are not members of the committee) to be members of any such sub-committee; and

(c) regulate the procedure of any such sub-committee and, subject to paragraph 3 below, the terms and conditions of service of any person appointed to be a member of any such sub-committee.

Remuneration, pensions etc. of the chairman of a customer service committee

2 (1) There shall be paid to the chairman of a customer service committee such remuneration, and such travelling and other allowances, as the Director may determine.

(2) There shall be paid such pension, allowances or gratuities to or in respect of a person who has held or holds office as the chairman of a customer service committee, or such payments towards provision for the payment of a pension, allowances or gratuities to or in respect of such a person, as may be determined by the Director.

(3) If, when any person ceases to hold office as such a chairman, the Director determines that there are special circumstances which make it right that that person should receive compensation, there may be paid to him a sum by way of compensation of such amount as may be determined by the Director.

(4) The approval of the Treasury shall be required for the making of a determination under this paragraph.

Expenses of other members of a customer service committee etc.

3 Subject to paragraph 2 above, neither the members of a customer service committee nor the members of any sub-committee of any such committee shall be paid any sums by the Director for or in respect of their services except--

(a) in the case of services as a member of a customer service committee, sums reimbursing the member for loss of remuneration, for travelling expenses or for any other out-of-pocket expenses; and

(b) in the case of services as a member of a sub-committee of a customer service committee, sums reimbursing the member for travelling expenses or for any other out-of-pocket expenses which do not relate to loss of remuneration.

Staff

4 (1) The Director may, with the approval of the Treasury as to numbers and terms and conditions of service, appoint such officers and employees of a customer service committee or of any sub-committee of a customer service committee as he may determine.

(2) Anything authorised or required by or under this Act to be done by a customer service committee may be done by any of the officers or employees of the committee, or of any of its sub-committees, who has been authorised for the purpose, whether generally or specially, by the committee or, in accordance with the terms of its appointment, by a sub-committee of the committee.

Financial provisions

5 (1) The following shall be paid by the Director out of money provided by Parliament, that is to say--

(a) any sums required to be paid to or in respect of any person under paragraph 2 or 3 above; and

(b) any expenses incurred by a customer service committee in accordance with any statement approved under sub-paragraph (3) below.

(2) A customer service committee shall prepare in respect of each financial year a statement of the expenses which it expects to incur in respect of that year--

(a) in relation to officers and employees of the committee and its sub-committees; or

(b) otherwise for the purposes of, or in connection with, the carrying out of its functions;

and that statement shall be sent to the Director, in the case of the statement in respect of the financial year current at the establishment of the committee, as soon as practicable after the establishment of the committee and, in any other case, before the beginning of the financial year to which the statement relates.

(3) The Director shall consider any statement sent to him under sub-paragraph (2) above and shall either approve the statement or approve it with such modifications as he considers appropriate.

Parliamentary disqualification etc.

6 In the [1975 c. 24.] House of Commons Disqualification Act 1975, in Part III of Schedule 1 (other disqualifying offices), there shall be inserted (at the appropriate place) the following entry--

" Chairman of a customer service committee established under section 6 of the Water Act 1989. " ;

and the like insertion shall be made in Part III of Schedule 1 to the [1975 c. 25.] Northern Ireland Assembly Disqualification Act 1975.

Sections 13 and 23.

SCHEDULE 5 Transitional Provision on Termination of Appointments

Cases where Schedule applies

1 (1) This Schedule shall apply in each of the cases specified in sub-paragraphs (2) and (3) below.

(2) The first case in which this Schedule applies is where--

(a) the Secretary of State or the Director is proposing to make an appointment or variation to which section 12 of this Act applies; and

(b) by virtue of that appointment a company ("the new appointee") will hold an appointment as the water undertaker or sewerage undertaker for an area which is or includes the whole or any part of the area for which until the relevant date another company ("the existing appointee") holds an appointment as the water undertaker or, as the case may be, sewerage undertaker.

(3) The second case in which this Schedule applies is where--

(a) the High Court has made a special administration order in relation to any company ("the existing appointee"); and

(b) it is proposed that on and after the relevant date another company ("the new appointee") should, without any such appointment or variation as is mentioned in sub-paragraph (2) above having been made, hold an appointment as water undertaker or sewerage undertaker for an area which is or includes the whole or any part of the area for which until that date the existing appointee holds an appointment as water undertaker or, as the case may be, sewerage undertaker.

(4) In this Schedule--

• "existing appointee" and "new appointee" shall be construed in accordance with sub-paragraph (2) or (3) above according to whether this Schedule is applying in the case mentioned in the first or second of those sub-paragraphs;

• "other appointees" means any companies, other than the existing appointee and the new appointee, which are likely on or at a time after the relevant date to be holding appointments as water undertakers or sewerage undertakers for any area which is or includes any part of the area for which the existing appointee has at any time held an appointment as water undertaker or sewerage undertaker;

• "the relevant date" means--

  (a)

  where this Schedule applies by virtue of sub-paragraph (2) above, the coming into force of the appointment or variation mentioned in paragraph (a) of that sub-paragraph; and

  (b)

  where this Schedule applies by virtue of sub-paragraph (3) above, such day, being a day before the discharge of the special administration order takes effect, as the High Court may appoint for the purposes of this Schedule;

• "special administration order" means an order under section 23 of this Act (whether made by virtue of that section or section 24 of this Act); and

• "special administrator", in relation to a company in relation to which a special administration order has been made, means the person for the time being holding office for the purposes of section 23(2) of this Act.

Making and modification of transfer schemes

2 (1) The existing appointee, acting with the consent of the new appointee and, in relation to the matters affecting them, of any other appointees, may make a scheme under this Schedule for the transfer of property, rights and liabilities from the existing appointee to the new appointee.

(2) A scheme under this Schedule shall not take effect unless it is approved by the Secretary of State or the Director.

(3) Where a scheme under this Schedule is submitted to the Secretary of State or the Director for his approval, he may, with the consent of the new appointee, of the existing appointee and, in relation to the matters affecting them, of any other appointees, modify the scheme before approving it.

(4) If at any time after a scheme under this Schedule has come into force in relation to the property, rights and liabilities of any company the Secretary of State considers it appropriate to do so and the existing appointee, the new appointee and, in relation to the provisions of the order which affect them, any other appointees consent to the making of the order, the Secretary of State may by order provide that that scheme shall for all purposes be deemed to have come into force with such modifications as may be specified in the order.

(5) An order under sub-paragraph (4) above may make, with effect from the coming into force of the scheme to which it relates, any such provision as could have been made by the scheme and, in connection with giving effect to that provision from that time, may contain such supplemental, consequential and transitional provision as the Secretary of State considers appropriate.

(6) In determining, in accordance with his duties under Part I of this Act, whether and in what manner to exercise any power conferred on him by this paragraph the Secretary of State or the Director shall have regard to the need to ensure that any provision for the transfer of property, rights and liabilities in accordance with a scheme under this Schedule allocates property, rights and liabilities to the different companies affected by the scheme in such proportions as appear to him to be appropriate in the context of the different functions which will, by virtue of this Act, be carried out at different times on and after the relevant date by the new appointee, by the existing appointee and by any other appointees.

(7) It shall be the duty of the new appointee, of the existing appointee and of any other appointees to provide the Secretary of State or the Director with all such information and other assistance as he may reasonably require for the purposes of, or in connection with, the exercise of any power conferred on him by this paragraph.

(8) A company which without reasonable excuse fails to do anything required of it by virtue of sub-paragraph (7) above shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 5 on the standard scale.

(9) Without prejudice to the other provisions of this Act relating to the special administrator of a company, anything which is required by this paragraph to be done by a company shall, where that company is a company in relation to which a special administration order is in force, be effective only if it is done on the company's behalf by its special administrator.

Transfers by scheme

3 (1) A scheme under this Schedule for the transfer of the existing appointee's property, rights and liabilities shall come into force on the relevant date and, on coming into force, shall have effect, in accordance with its provisions and without further assurance, so as to transfer the property, rights and liabilities to which the scheme relates to the new appointee.

(2) For the purpose of making any division of property, rights or liabilities which it is considered appropriate to make in connection with the transfer of property, rights and liabilities in accordance with a scheme under this Schedule, the provisions of that scheme may--

(a) create for the existing appointee, the new appointee or any other appointees an interest in or right over any property to which the scheme relates;

(b) create new rights and liabilities as between any two or more of those companies; and

(c) in connection with any provision made by virtue of paragraph (a) or (b) above, make incidental provision as to the interests, rights and liabilities of other persons with respect to the subject-matter of the scheme.

(3) A scheme under this Schedule may contain provision for the consideration to be provided by the new appointee and by any other appointees in respect of the transfer or creation of property, rights and liabilities by means of the scheme; and any such provision shall be enforceable in the same way as if the property, rights and liabilities had been created or transferred, and (if the case so requires) had been capable of being created or transferred, by agreement between the parties.

(4) The property, rights and liabilities of the existing appointee that shall be capable of being transferred in accordance with a scheme under this Schedule shall include--

(a) property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the existing appointee;

(b) such property, rights and liabilities to which the existing appointee may become entitled or subject after the making of the scheme and before the relevant date as may be described in the scheme;

(c) property situated anywhere in the United Kingdom or elsewhere;

(d) rights and liabilities under enactments;

(e) rights and liabilities under the law of any part of the United Kingdom or of any country or territory outside the United Kingdom.

(5) Where a scheme under this Schedule is made in the case specified in paragraph 1(3) above, the scheme may provide for the transfer to the new appointee, with such modifications as may be specified in the scheme, of the appointment under tnund r e t uedernent under Chapter I of Part II of this Act which is held by the existing appointee; and in such a case different schemes under this Schedule may provide for the transfer of such an appointment to different companies as respects different parts of the area to which the appointment relates.

(6) The provision that may be made by virtue of sub-paragraph (2)(b) above includes--

(a) provision for treating any person who is entitled by virtue of a scheme under this Schedule to possession of a document as having given another person an acknowledgement in writing of the right of that other person to the production of the document and to delivery of copies thereof; and

(b) provision applying section 64 of the [1925 c. 20.] Law of Property Act 1925 (production and safe custody of documents) in relation to any case in relation to which provision falling within paragraph (a) above has effect.

(7) For the avoidance of doubt, it is hereby declared that the transfers authorised by paragraph (a) of sub-paragraph (4) above include transfers which, by virtue of that paragraph, are to take effect as if there were no such contravention, liability or interference with any interest or right as there would be, in the case of a transfer or assignment otherwise than in accordance with a scheme under this Schedule, by reason of any provision having effect (whether under any enactment or agreement or otherwise) in relation to the terms on which the existing appointee is entitled or subject to the property, right or liability in question.

Supplemental provisions of schemes

4 (1) A scheme under this Schedule may contain supplemental, consequential and transitional provision for the purposes of, or in connection with, the provision for the transfers or any other provision made by the scheme.

(2) Without prejudice to the generality of sub-paragraph (1) above, a scheme under this Schedule may provide--

(a) that for purposes connected with any transfers made in accordance with the scheme (including the transfer of rights and liabilities under an enactment) the new appointee is to be treated as the same person in law as the existing appointee;

(b) that, so far as may be necessary for the purposes of or in connection with any such transfers, agreements made, transactions effected and other things done by or in relation to the existing appointee are to be treated as made, effected or done by or in relation to the new appointee;

(c) that, so far as may be necessary for the purposes of or in connection with any such transfers, references in any agreement (whether or not in writing) or in any deed, bond, instrument or other document to, or to any officer of, the existing appointee are to have effect with such modifications as are specified in the scheme;

(d) that proceedings commenced by or against the existing appointee are to be continued by or against the new appointee;

(e) that the effect of any transfer under the scheme in relation to contracts of employment with the existing appointee is not to be to terminate any of those contracts but is to be that periods of employment with the existing appointee are to count for all purposes as periods of employment with the new appointee;

(f) that disputes as to the effect of the scheme between the existing appointee and the new appointee, between either of them and any other appointee or between different companies which are other appointees are to be referred to such arbitration as may be specified in or determined under the scheme;

(g) that determinations on such arbitrations and certificates given jointly by two or more such appointees as are mentioned in paragraph (f) above as to the effect of the scheme as between the companies giving the certificates are to be conclusive for all purposes.

Duties of existing appointee after the scheme comes into force

5 (1) A scheme under this Schedule may provide for the imposition of duties on the existing appointee and on the new appointee to take all such steps as may be requisite to secure that the vesting in the new appointee, by virtue of the scheme, of any foreign property, right or liability is effective under the relevant foreign law.

(2) The provisions of a scheme under this Schedule may require the existing appointee to comply with any directions of the new appointee in performing any duty imposed on the existing appointee by virtue of a provision included in the scheme under sub-paragraph (1) above.

(3) A scheme under this Schedule may provide that, until the vesting of any foreign property, right or liability of the existing appointee in the new appointee is effective under the relevant foreign law, it shall be the duty of the existing appointee to hold that property or right for the benefit of, or to discharge that liability on behalf of, the new appointee.

(4) Nothing in any provision included by virtue of this paragraph in a scheme under this Schedule shall be taken as prejudicing the effect under the law of any part of the United Kingdom of the vesting by virtue of the scheme in the new appointee of any foreign property, right or liability.

(5) A scheme under this Schedule may provide that, in specified cases, foreign property, rights or liabilities that are acquired or incurred by an existing appointee after the scheme comes into force are immediately to become property, rights or liabilities of the new appointee; and such a scheme may make the same provision in relation to any such property, rights or liabilities as can be made, by virtue of the preceding provisions of this paragraph, in relation to foreign property, rights and liabilities vested in the existing appointee when the scheme comes into force.

(6) References in this paragraph to any foreign property, right or liability are references to any property, right or liability as respects which any issue arising in any proceedings would have to be determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom.

(7) Any expenses incurred by an existing appointee in consequence of any provision included by virtue of this paragraph in a scheme under this Schedule shall be met by the new appointee.

(8) Duties imposed on a company by virtue of this paragraph shall be enforceable in the same way as if they were imposed by a contract between the existing appointee and the new appointee.

Further transitional provision and local statutory provisions

6 (1) The Secretary of State may, if he thinks it appropriate to do so for the purposes of, or in connection with, any appointment or variation to which section 12 of this Act applies or any scheme under this Schedule, by order made by statutory instrument--

(a) make any provision which corresponds in relation to any enactment mentioned in Schedule 26 to this Act to any provision made by that Schedule or makes similar provision in relation to any other enactment;

(b) amend or repeal any local statutory provision.

(2) An order under this paragraph may--

(a) make provision applying generally in relation to local statutory provisions of a description specified in the order;

(b) make different provision for different cases, including different provision in relation to different persons, circumstances or localities; and

(c) contain such supplemental, consequential and transitional provision as the Secretary of State considers appropriate.

Section 23.

SCHEDULE 6 Special Administration Orders

Part I Modifications of the 1986 Act

General application of provisions of 1986 Act

1 Where a special administration order has been made, sections 11 to 15, 17 to 23 and 27 of the 1986 Act (which relate to administration orders under Part II of that Act) shall apply, with the modifications specified in the following provisions of this Part of this Schedule--

(a) as if references in those sections to an administration order were references to a special administration order and references to an administrator were references to a special administrator; and

(b) where the company in relation to which the order has been made is a statutory water company that is not a limited company, as if references to a company included references to such a company.

Effect of order

2 In section 11 of the 1986 Act (effect of order), as applied by this Part of this Schedule--

(a) the requirement in subsection (1)(a) that any petition for the winding up of the company shall be dismissed shall be without prejudice to the special administration order in a case where the order is made by virtue of section 24 of this Act;

(b) the references in subsections (1)(b), (3)(b) and (4) to an administrative receiver, in relation to a statutory water company that is not a limited company, shall include references to any receiver whose functions in relation to that company correspond to those of an administrative receiver in relation to a limited company; and

(c) the reference in subsection (3)(d) to proceedings shall include a reference to any proceedings under or for the purposes of section 20 of this Act.

Appointment of special administrator

3 In section 13 of the 1986 Act (appointment of administrator), as applied by this Part of this Schedule, for subsection (3) there shall be substituted the following subsection--

" (3) An application for an order under subsection (2) may be made--

(a) by the Secretary of State;

(b) with the consent of the Secretary of State, by the Director General of Water Services;

(c) by any continuing special administrator of the compa3y; or

(d) where there is no such special administrator, by the compane, the directors or any creditor or creditors of the company. "

General powers of special administrator

4 In section 14 of the 1986 Act (general powers of administrator), as applied by this Part of this Schedule--

(a) in subsection (1)(b), the reference to the powers specified in Schedule 1 to that Act shall be deemed to include a reference to a power to act on behalf of the company for the purposes of this Act, any local statutory provision or the exercise or performance of any power or duty which is conferred or imposed on the company by virtue of its holding an appointment under Chapter I of Part II of this Act; and

(b) in subsection (4), the reference to a power conferred by the company's memorandum or articles of association shall be deemed to include a reference to a power conferred by a local statutory provision or by virtue of the company's holding such an appointment.

Power to deal with charged property

5 (1) Section 15 of the 1986 Act (power to deal with charged property), as applied by this Part of this Schedule, shall have effect as follows.

(2) In subsection (5)(b) (amount to be paid to chargeholder not to be less than open market value), for the words "in the open market by a willing vendor" there shall be substituted the words "for the best price which is reasonably available on a sale which is consistent with the purposes of the special administration order".

(3) Subsections (7) and (8) (notice to registrar) shall not apply where the company in relation to which the special administration order is made is a statutory water company that is not a limited company.

Duties of special administrator

6 (1) Section 17 of the 1986 Act (duties of administrator), as applied by this Part of this Schedule, shall have effect as follows.

(2) For subsection (2) there shall be substituted the following subsection--

" (2) Subject to any directions of the court, it shall be the duty of the special administrator to manage the affairs, business and property of the company in accordance with proposals, as for the time being revised under section 23, which have been prepared for the purposes of that section by him or any predecessor of his. "

(3) In subsection (3), paragraph (a) (right of creditors to require the holding of a creditors' meeting) shall be omitted.

Discharge of order

7 (1) Section 18 of the 1986 Act (discharge and variation of administration order), as applied by this Part of this Schedule, shall have effect as follows.

(2) For subsections (1) and (2) there shall be substituted the following subsection--

" (1) An application for a special administration order to be discharged may be made--

(a) by the special administrator, on the ground that the purposes of the order have been achieved; or

(b) by the Secretary of State or, with the consent of the Secretary of State, the Director General of Water Services, on the ground that it is no longer necessary that those purposes are achieved. "

(3) In subsection (3), the words "or vary" shall be omitted.

(4) In subsection (4), the words "or varied" and "or variation" shall be omitted and for the words "to the registrar of companies" there shall be substituted--

(a) where the company in relation to which the special administration order is made is a statutory water company that is not a limited company, the words "to the Director General of Water Services"; and

(b) in any other case, the words "to the registrar of companies and to the Director General of Water Services".

Notice of making of order

8 In section 21(2) of the 1986 Act (notice of order to be given by administrator), as applied by this Part of this Schedule, for the words "to the registrar of companies" there shall be substituted--

(a) where the company in relation to which the special administration order is made is a statutory water company that is not a limited company, the words "to the Director General of Water Services"; and

(b) in any other case, the words "to the registrar of companies, to the Director General of Water Services".

Statement of proposals

9 In section 23 of the 1986 Act (statement of proposals), as applied by this Part of this Schedule, for subsections (1) and (2) there shall be substituted the following subsections--

" (1) Where a special administration order has been made, the special administrator shall, within 3 months (or such longer period as the court may allow) after the making of the order send a statement of his proposals for achieving the purposes of the order--

(a) to the Secretary of State and to the Director General of Water Services;

(b) so far as he is aware of their addresses, to all creditors of the company; and

(c) except where the company in relation to which the special administration order is made is a statutory water company that is not a limited company, to the registrar of companies;

and may from time to time revise those proposals.

(2) If at any time--

(a) the special administrator proposes to make revisions of the proposals for achieving the purposes of the special administration order; and

(b) those revisions appear to him to be substantial,

the special administrator shall, before making those revisions, send a statement of the proposed revisions to the Secretary of State, to the Director General of Water Services, (so far as he is aware of their addresses) to all creditors of the company and, except where the company in relation to which the special administration order is made is a statutory water company that is not a limited company, to the registrar of companies.

(2A) Where the special administrator is required by subsection (1) or (2) to send any person a statement before the end of any period or before making any revision of any proposals, he shall also, before the end of that period or, as the case may be, before making those revisions either--

(a) send a copy of the statement (so far as he is aware of their addresses) to all members of the company; or

(b) publish in the prescribed manner a notice stating an address to which members should write for copies of the statement to be sent to them free of charge. "

Applications to court

10 (1) Section 27 of the 1986 Act (protection of interests of creditors and members), as applied by this Part of this Schedule, shall have effect as follows.

(2) After subsection (1) there shall be inserted the following subsection--

" (1A) At any time when a special administration order is in force the Secretary of State or, with the consent of the Secretary of State, the Director General of Water Services may apply to the High Court by petition for an order under this section on the ground that the special administrator has exercised or is exercising, or proposing to exercise, his powers in relation to the company in a manner which--

(a) will not best ensure the achievement of the purposes of the order; or

(b) without prejudice to paragraph (a) above, involves either a contravention of the conditions of the company's appointment under Chapter I of Part II of the Water Act 1989 or of any statutory or other requirement imposed on the company in consequence of that appointment. "

(3) In subsection (3) (order not to prejudice or prevent voluntary arrangements or administrator's proposals), for paragraphs (a) and (b) there shall be substituted the words "the achievement of the purposes of the order".

(4) Subsections (4)(d) and (6) (power of court to order discharge) shall be omitted.

Part II Supplemental

General adaptations and saving

11 (1) Subject to the preceding provisions of this Schedule, references in the 1986 Act (except in sections 8 to 10 and 24 to 26) or in any other enactment passed before this Act to an administration order under Part II of that Act, to an application for such an order and to an administrator shall include references, respectively, to a special administration order, to an application for a special administration order and to a special administrator.

(2) Subject as aforesaid and to sub-paragraph (3) below, references in the 1986 Act or in any other enactment passed before this Act to an enactment contained in Part II of that Act shall include references to that enactment as applied by section 23 of this Act or Part I of this Schedule.

(3) Sub-paragraphs (1) and (2) above shall apply in relation to a reference in an enactment contained in Part II of the 1986 Act only so far as necessary for the purposes of the operation of the provisions of that Part as so applied.

(4) The provisions of this Schedule shall be without prejudice to the power conferred by section 411 of the 1986 Act (company insolvency rules), as modified by sub-paragraphs (1) and (2) above.

Interpretation

12 (1) In this Schedule "the 1986 Act" means the [1986 c. 45.] Insolvency Act 1986.

(2) In this Schedule and in any modification of the 1986 Act made by this Schedule--

• "special administration order" means an order under section 23 of this Act (whether made by virtue of that section or section 24 of this Act); and

• "special administrator", in relation to a special administration order, means any person appointed in relation to that order for the purposes of section 23(2) of this Act.

Sections 51 and 111.

SCHEDULE 7 Procedure for certain Orders

Orders to which Schedule applies

1 This Schedule applies to orders under section 51 or 111 of this Act; and in this Schedule--

• "a relevant authority"--

  (a)

  in relation to an order under section 51 of this Act, means the Director or a water undertaker; and

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