Statutory Instrument 1989 No. 2405 (N.I. 19)

The Insolvency (Northern Ireland) Order 1989

(The document as of February, 2008)

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STATUTORY INSTRUMENTS

1989 No. 2405 (N.I. 19)

NORTHERN IRELAND

The Insolvency (Northern Ireland) Order 1989

Made	19th December 1989

Coming into operation in accordance with Article 1(2)

ARRANGEMENT OF ORDER

PART I
INTRODUCTORY
1.	Title and commencement.
2.	General interpretation.
3.	"Act as insolvency practitioner".
4.	"Associate".
Interpretation for Parts II to VII
5.	Interpretation.
6.	"Insolvency" and "go into liquidation".
7.	"Connected with a company".
8.	"Member of a company".
Interpretation for Parts VIII to X
9.	Interpretation.
10.	"Security", etc.
11.	"Bankrupt's estate".
Interpretation for this Order and the Companies Order
12.	"Receiver or manager".
13.	"Contributory".
PARTS II TO VII
COMPANY INSOLVENCY; COMPANIES WINDING UP
PART II
COMPANY VOLUNTARY ARRANGEMENTS
The proposal
14.	Those who may propose an arrangement.
15.	Procedure where nominee is not the liquidator or administrator.
16.	Summoning of meetings.
Consideration and implementation of proposal
17.	Decisions of meetings.
18.	Effect of approval.
19.	Challenge of decisions.
20.	Implementation of proposal.
PART III
ADMINISTRATION ORDERS
Making, etc., of administration order
21.	Power of High Court to make order.
22.	Application for order.
23.	Effect of application.
24.	Effect of order.
25.	Notification of order.
Administrators
26.	Appointment of administrator.
27.	General powers.
28.	Power to deal with charged property, etc.
29.	General duties.
30.	Discharge or variation of administration order.
31.	Vacation of office.
32.	Release of administrator.
Ascertainment and investigation of company's affairs
33.	Information to be given by administrator.
34.	Statement of affairs to be submitted to administrator.
Administrator's proposals
35.	Statement of proposals.
36.	Consideration of proposals by creditors' meeting.
37.	Approval of substantial revisions.
Miscellaneous
38.	Creditors' committee.
39.	Protection of interests of creditors and members.
PART IV
RECEIVERSHIP
RECEIVERS AND MANAGERS
General provisions
40.	Disqualification of body corporate from acting as receiver.
41.	Disqualification of undischarged bankrupt.
42.	Power of High Court to appoint official receiver.
Receivers and managers appointed out of court
43.	Time from which appointment is effective.
44.	Liability for invalid appointment.
45.	Application to High Court for directions.
46.	Power of High Court to fix remuneration.
47.	Liability for contracts, etc.
48.	Receivership accounts to be delivered to registrar.
Provisions applicable to every receivership
49.	Notification that receiver or manager appointed.
50.	Payment of debts out of assets subject to floating charge.
51.	Enforcement of duty to make returns.
Administrative receivers: general
52.	General powers.
53.	Power to dispose of charged property, etc.
54.	Agency and liability for contracts.
55.	Vacation of office.
Administrative receivers: ascertainment and investigation of company's affairs
56.	Information to be given by administrative receiver.
57.	Statement of affairs to be submitted.
58.	Report by administrative receiver.
59.	Committee of creditors.
PART V
WINDING UP OF COMPANIES REGISTERED UNDER THE COMPANIES ORDERS
CHAPTER I
PRELIMINARY
Modes of winding up
60.	Alternative modes of winding up.
Contributories
61.	Liability as contributories of present and past members.
62.	Directors with unlimited liability.
63.	Liability of past directors and shareholders.
64.	Limited company formerly unlimited.
65.	Unlimited company formerly limited.
66.	Nature of contributory's liability.
67.	Contributories in case of death of a member.
68.	Effect of contributory's bankruptcy.
69.	Companies registered under Companies Order, Part XXII, Chapter II.
CHAPTER II
VOLUNTARY WINDING UP (INTRODUCTORY AND GENERAL)
Resolutions for, and commencement of, voluntary winding up
70.	Circumstances in which company may be wound up voluntarily.
71.	Notice of resolution to wind up voluntarily.
72.	Commencement of voluntary winding up.
Consequences of resolution to wind up
73.	Effect on business and status of company.
74.	Avoidance of share transfers, etc., after winding-up resolution.
Declaration of solvency
75.	Statutory declaration of solvency.
76.	Distinction between "members' " and "creditors' " voluntary winding up.
CHAPTER III
MEMBERS' VOLUNTARY WINDING UP
77.	Appointment of liquidator.
78.	Power to fill vacancy in office of liquidator.
79.	General company meeting at each year's end.
80.	Final meeting prior to dissolution.
81.	Effect of company's insolvency.
82.	Conversion to creditors' voluntary winding up.
CHAPTER IV
CREDITORS' VOLUNTARY WINDING UP
83.	Application of this Chapter.
84.	Meeting of creditors.
85.	Directors to lay statement of affairs before creditors.
86.	Appointment of liquidator.
87.	Appointment of liquidation committee.
88.	Creditors' meeting where winding up converted under Article 82.
89.	Cesser of directors' powers.
90.	Vacancy in office of liquidator.
91.	Meetings of company and creditors at each year's end.
92.	Final meeting prior to dissolution.
CHAPTER V
PROVISIONS APPLYING TO BOTH KINDS OF VOLUNTARY WINDING UP
93.	Distribution of company's property.
94.	Appointment or removal of liquidator by the High Court.
95.	Notice by liquidator of his appointment.
96.	Acceptance of shares, etc., as consideration for sale of company's property.
97.	Dissent from arrangement under Article 96.
98.	Reference of questions to the High Court.
99.	No liquidator appointed or nominated by company.
100.	Expenses of voluntary winding up.
101.	Saving for certain rights.
CHAPTER VI
WINDING UP BY THE HIGH COURT
Grounds and effect of winding-up petition
102.	Circumstances in which company may be wound up by the High Court.
103.	Definition of inability to pay debts; the statutory demand.
104.	Application for winding up.
105.	Powers of High Court on hearing of petition.
106.	Power to stay or restrain proceedings against company.
107.	Avoidance of property dispositions, etc.
108.	Avoidance of sequestration or distress.
Commencement of winding up
109.	Commencement of winding up by the High Court.
110.	Consequences of winding-up order.
Investigation procedures
111.	Company's statement of affairs.
112.	Investigation by official receiver.
113.	Public examination of officers.
114.	Enforcement of Article 113.
Appointment of liquidator
115.	Appointment and powers of provisional liquidator.
116.	Functions of official receiver in relation to office of liquidator.
117.	Appointment by Department.
118.	Choice of liquidator at meetings of creditors and contributories.
119.	Appointment by the High Court following administration or voluntary arrangement.
Liquidation committees
120.	Liquidation committee.
The liquidator's functions
121.	General functions in winding up by the High Court.
122.	Custody of company's property.
123.	Vesting of company property in liquidator.
124.	Duty to summon final meeting.
General powers of High Court
125.	Power to stay winding up.
126.	Settlement of list of contributories and application of assets.
127.	Debts due from contributory to company.
128.	Power to make calls.
129.	Payment into bank of money due to company.
130.	Order on contributory to be conclusive evidence.
131.	Power to exclude creditors not proving in time.
132.	Adjustment of rights of contributories.
133.	Inspection of books by creditors, etc.
134.	Payment of expenses of winding up.
135.	Power to arrest absconding contributory.
136.	Powers of High Court to be cumulative.
137.	Delegation of powers to liquidator.
CHAPTER VII
LIQUIDATORS
Preliminary
138.	Style and title of liquidators.
139.	Corrupt inducement affecting appointment.
Liquidator's powers and duties
140.	Voluntary winding up.
141.	Creditors' voluntary winding up.
142.	Winding up by the High Court.
143.	Supplementary powers.
144.	Enforcement of liquidator's duty to make returns, etc.
Removal: vacation of office
145.	Removal, etc. (voluntary winding up).
146.	Removal, etc. (winding up by the High Court).
Release of liquidator
147.	Release (voluntary winding up).
148.	Release (winding up by the High Court).
CHAPTER VIII
PROVISIONS OF GENERAL APPLICATION IN WINDING UP
Preferential debts
149.	Preferential debts (general provision).
150.	Preferential charge on goods distrained.
Special managers
151.	Power to appoint special manager.
Disclaimer
152.	Power to disclaim onerous property.
153.	Disclaimer of leaseholds.
154.	Land subject to rentcharge.
155.	Powers of High Court (general).
156.	Powers of High Court (leaseholds).
Miscellaneous matters
157.	Rescission of contracts by the High Court.
158.	Power to make over assets to employees.
159.	Notification that company is in liquidation.
160.	Interest on debts.
161.	Company's books to be evidence.
162.	Information as to pending liquidations.
163.	Resolutions passed at adjourned meetings.
164.	Meetings to ascertain wishes of creditors or contributories.
165.	Affidavits, etc., in United Kingdom and elsewhere.
CHAPTER IX
DISSOLUTION OF COMPANIES AFTER WINDING UP
166.	Dissolution (voluntary winding up).
167.	Early dissolution.
168.	Consequence of notice under Article 167.
169.	Dissolution otherwise than under Article 167.
CHAPTER X
MALPRACTICE BEFORE AND DURING LIQUIDATION; PENALISATION OF COMPANIES AND COMPANY OFFICERS; INVESTIGATIONS AND PROSECUTIONS
Offences of fraud, deception, etc.
170.	Fraud, etc., in anticipation of winding up.
171.	Transactions in fraud of creditors.
172.	Misconduct in course of winding up.
173.	Falsification of company's books.
174.	Material omissions from statement relating to company's affairs.
175.	False representations to creditors.
Penalisation of directors and officers
176.	Summary remedy against delinquent directors, liquidators, etc.
177.	Fraudulent trading.
178.	Wrongful trading.
179.	Proceedings under Articles 177 and 178.
180.	Restriction on re-use of company names.
181.	Personal liability for debts following contravention of Article 180.
Investigation and prosecution of malpractice
182.	Prosecution of delinquent officers and members of company.
183.	Obligations arising under Article 182.
PART VI
WINDING UP OF UNREGISTERED COMPANIES
184.	Meaning of "unregistered company".
185.	Winding up of unregistered companies.
186.	Inability to pay debts: unpaid creditor for £750 or more.
187.	Inability to pay debts: debt remaining unsatisfied after action brought.
188.	Inability to pay debts: other cases.
189.	Company incorporated outside Northern Ireland may be wound up though dissolved.
190.	Contributories in winding up of unregistered company.
191.	Power of High Court to stay or restrain proceedings.
192.	Actions stayed on winding-up order.
193.	Provisions of this Part to be cumulative.
PART VII
MISCELLANEOUS PROVISIONS APPLYING TO COMPANIES WHICH ARE INSOLVENT OR IN LIQUIDATION
Office-holders
194.	Holders of office to be qualified insolvency practitioners.
195.	Appointment to office of two or more persons.
196.	Validity of office-holder's acts.
Management by administrators, liquidators, etc.
197.	Supplies of water, electricity, etc.
198.	Getting in the company's property.
199.	Duty to co-operate with office-holder.
200.	Inquiry into company's dealings, etc.
201.	High Court's enforcement powers under Article 200.
Adjustment of prior transactions (administration and liquidation)
202.	Transactions at an undervalue.
203.	Preferences.
204.	"Relevant time" under Articles 202, 203.
205.	Orders under Articles 202, 203.
206.	Extortionate credit transactions.
207.	Avoidance of certain floating charges.
208.	Unenforceability of liens on books, etc.
PARTS VIII TO X
INSOLVENCY OF INDIVIDUALS; BANKRUPTCY
PART VIII
INDIVIDUAL VOLUNTARY ARRANGEMENTS
CHAPTER I
DEEDS OF ARRANGEMENT
209.	Deeds of arrangement to which this Chapter applies.
Registration of deeds of arrangement
210.	Registrar and deputy registrar.
211.	Mode of registration.
212.	Form of register.
213.	Rectification of register.
Avoidance of deeds of arrangement
214.	Avoidance of unregistered deeds of arrangement.
215.	Avoidance of deeds of arrangement unless assented to by a majority of the creditors.
216.	Deeds otherwise void or voidable.
Provisions as to trustees
217.	Notice to creditors of avoidance of deed.
218.	Trustee acting when deed of arrangement void.
219.	Protection of trustees under void deeds.
220.	Payment of expenses incurred by trustees.
221.	Security by trustee.
222.	Transmission of accounts.
223.	Preferential payment to creditor.
Miscellaneous
224.	Applications to the High Court.
225.	Inspection of register, etc., certified copies and evidence.
CHAPTER II
VOLUNTARY ARRANGEMENTS
Moratorium for insolvent debtor
226.	Interim order of High Court.
227.	Application for interim order.
228.	Effect of application.
229.	Cases in which interim order can be made.
230.	Nominee's report on debtor's proposal.
231.	Summoning of creditors' meeting.
Consideration and implementation of debtor's proposal
232.	Decisions of creditors' meeting.
233.	Report of decisions to High Court.
234.	Effect of approval.
235.	Effect where debtor an undischarged bankrupt.
236.	Challenge of meeting's decision.
237.	Implementation and supervision of approved voluntary arrangement.
PART IX
BANKRUPTCY
CHAPTER I
BANKRUPTCY PETITIONS; BANKRUPTCY ORDERS
Preliminary
238.	Who may present a bankruptcy petition.
239.	Conditions to be satisfied in respect of debtor.
240.	Other preliminary conditions.
Creditor's petition
241.	Grounds of creditor's petition.
242.	Definition of "inability to pay", etc.; the statutory demand.
243.	Creditor with security.
244.	Expedited petition.
245.	Proceedings on creditor's petition.
Debtor's petition
246.	Grounds of debtor's petition.
247.	Appointment of insolvency practitioner by the High Court.
248.	Action on report of insolvency practitioner.
249.	Summary administration.
Other cases for special consideration
250.	Default in connection with voluntary arrangement.
251.	Petition in respect of a solicitor.
Commencement and duration of bankruptcy; discharge
252.	Commencement and continuance.
253.	Duration.
254.	Discharge by order of the High Court.
255.	Effect of discharge.
256.	Power of High Court to annul bankruptcy order.
CHAPTER II
PROTECTION OF BANKRUPT'S ESTATE AND INVESTIGATION OF HIS AFFAIRS
257.	Restrictions on dispositions of property.
258.	Restriction on proceedings and remedies.
259.	Power to appoint interim receiver.
260.	Receivership pending appointment of trustee.
261.	Statement of affairs.
262.	Investigatory duties of official receiver.
263.	Public examination of bankrupt.
264.	Duties of bankrupt in relation to official receiver.
CHAPTER III
TRUSTEES IN BANKRUPTCY
Tenure of office as trustee
265.	Power to make appointments.
266.	Summoning of meeting to appoint first trustee.
267.	Power of creditors to requisition meeting.
268.	Failure of meeting to appoint trustee.
269.	Appointment of trustee by Department.
270.	Special cases.
271.	Removal of trustee; vacation of office.
272.	Release of trustee.
273.	Vacancy in office of trustee.
Control of trustee
274.	Creditors' committee.
275.	Exercise by Department of fucntions of creditors' committee.
276.	General control of trustee by the High Court.
277.	Liability of trustee.
CHAPTER IV
ADMINISTRATION BY TRUSTEE
Preliminary
278.	General functions of trustee.
Acquisition, control and realisation of bankrupt's estate
279.	Vesting of bankrupt's estate in trustee.
280.	After-acquired property.
281.	Vesting in trustee of certain items of excess value.
282.	Time-limit for notice under Article 280 or 281.
283.	Income payments orders.
284.	Acquisition by trustee of control.
285.	Obligation to surrender control to trustee.
286.	Charge on bankrupt's home.
287.	Powers of trustee.
Disclaimer of onerous property
288.	Disclaimer (general power).
289.	Notice requiring trustee's decision.
290.	Disclaimer of leaseholds.
291.	Disclaimer of dwelling house.
292.	Disclaimer of land subject to rentcharge.
293.	High Court order vesting disclaimed property.
294.	Order under Article 293 in respect of leaseholds.
Distribution of bankrupt's estate
295.	Proof of debts.
296.	Mutual credit and set-off.
297.	Distribution by means of dividend.
298.	Claims by unsatisfied creditors.
299.	Distribution of property in specie.
300.	Priority of debts.
301.	Preferential charge on goods distrained.
302.	Debts to spouse.
303.	Final distribution.
304.	Final meeting.
305.	Saving for bankrupt's home.
Supplemental
306.	Duties of bankrupt in relation to trustee.
307.	Stay of distribution in case of second bankruptcy.
308.	Adjustment between earlier and later bankruptcy estates.
CHAPTER V
EFFECT OF BANKRUPTCY ON CERTAIN RIGHTS, TRANSACTIONS, ETC.
Rights of occupation
309.	Rights of occupation, etc., of bankrupt's spouse.
310.	Rights of occupation of bankrupt.
311.	Payments in respect of premises occupied by bankrupt.
Adjustment of prior transactions, etc.
312.	Transactions at an undervalue.
313.	Preferences.
314.	"Relevant time" under Articles 312, 313.
315.	Orders under Articles 312, 313.
316.	Extortionate credit transactions.
317.	Avoidance of general assignment of book debts.
318.	Contracts to which bankrupt is a party.
319.	Apprenticeships, etc.
320.	Unenforceability of liens on books, etc.
CHAPTER VI
BANKRUPTCY OFFENCES
Preliminary
321.	Scheme of this Chapter.
322.	Definitions for the purposes of this Chapter.
323.	Defence of innocent intention.
Wrongdoing by the bankrupt before and after bankruptcy
324.	Non-disclosure.
325.	Concealment of property.
326.	Concealment of books and papers; falsification.
327.	False statements.
328.	Fraudulent disposal of property.
329.	Absconding.
330.	Fraudulent dealing with property obtained on credit.
331.	Obtaining credit; engaging in business.
332.	Failure to keep proper accounts of business.
333.	Gambling.
CHAPTER VII
POWERS OF HIGH COURT IN BANKRUPTCY
334.	General control of High Court.
335.	Power of arrest.
336.	Seizure of bankrupt's property.
337.	Inquiry into bankrupt's dealings and property.
338.	High Court's enforcement powers under Article 337.
339.	Provision corresponding to Article 337, where interim receiver appointed.
340.	Order for production of documents by Inland Revenue.
341.	Power to appoint special manager.
342.	Re-direction of bankrupt's letters, etc.
PART X
INDIVIDUAL INSOLVENCY: GENERAL PROVISIONS
343.	Supplies of water, electricity, etc.
344.	Time-limits.
345.	Formal defects.
PARTS XI TO XIV
MISCELLANEOUS MATTERS BEARING ON BOTH COMPANY AND INDIVIDUAL INSOLVENCY
PART XI
PREFERENTIAL DEBTS IN COMPANY AND INDIVIDUAL INSOLVENCY
346.	Categories of preferential debts.
347.	"The relevant date".
PART XII
INSOLVENCY PRACTITIONERS AND THEIR QUALIFICATION
Restrictions on unqualified persons acting as liquidator, trustee in bankruptcy, etc.
348.	Acting as insolvency practitioner without qualification.
The requisite qualification, and the means of obtaining it
349.	Persons not qualified to act as insolvency practitioners.
350.	Recognised professional bodies.
351.	Authorisation by competent authority.
352.	Grant, refusal and withdrawal of authorisation.
353.	Notices.
354.	Right to make representations.
PART XIII
PUBLIC ADMINISTRATION
Official receivers
355.	Appointment, etc., of official receivers.
356.	Functions and status of official receivers.
357.	Deputy official receivers.
Insolvency Account
358.	Insolvency Account.
Insolvency rules
359.	Insolvency rules.
360.	Committee to review rules under Article 359.
Fees
361.	Fees orders.
Specification, increase and reduction of money sums relevant in the operation of this Order
362.	Monetary limits.
Insolvency practice
363.	Regulations for purposes of Part XII.
Other order-making powers
364.	Insolvent partnerships.
365.	Insolvent estates of deceased persons.
366.	Recognised banks, etc.
PART XIV
MISCELLANEOUS
Provisions against debt avoidance
367.	Transactions defrauding creditors.
368.	Those who may apply for an order under Article 367.
369.	Provision which may be made by order under Article 367.
Disqualifications, reviews and reports
370.	Northern Ireland Assembly disqualification.
371.	Review, etc., by High Court of its orders.
372.	Annual report.
Legal proceedings
373.	Prosecution and punishment of offences.
374.	Summary proceedings.
375.	Admissibility in evidence of statements of affairs, etc.
Supplemental
376.	Judicial notice of court documents.
377.	Exemption from stamp duty.
378.	Crown application.
379.	Transitional provisions and savings.
380.	Amendments of Industrial Relations (Northern Ireland) Order 1976.
381.	Other amendments.
382.	Repeals.

SCHEDULES:
	Schedule 1—	Powers of administrator or administrative receiver.
	Schedule 2—	Powers of liquidator in a winding up.
Part I—
Powers exercisable with sanction.
Part II—
Powers exercisable without sanction in voluntary winding up, with sanction in winding up by the High Court.
Part III—
Powers exercisable without sanction in any winding up.
	Schedule 3—	Powers of trustee in bankruptcy.
Part I—
Powers exercisable with sanction.
Part II—
Powers exercisable without sanction.
Part III—
Ancillary powers.
	Schedule 4—	The categories of preferential debts.
	Schedule 5—	Provisions capable of inclusion in company insolvency rules.
	Schedule 6—	Provisions capable of inclusion in individual insolvency rules.
	Schedule 7—	Punishment of offences under this Order.
	Schedule 8—	Transitional provisions and savings.
Part I—
Company insolvency and winding up.
Part II—
Individual insolvency.
Part III—
Other transitional provisions and savings.
	Schedule 9—	Amendments.
Part I—
Amendments of Companies (Northern Ireland) Order 1986.
Part II—
Other amendments.
Part III—
Interim amendments relating to preferential debts.
	Schedule 10—	Repeals.

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