Small Business, Enterprise and Employment Act 2015

The most important provisions are Part 9 and schedule 7 on directors disqualification and Part 10 and schedules 9 to 11 on Insolvency.

The provisions come into force on 26 May 2015, save for Part 9 and Part 10 (apart from sections 120, 121, 127 to 132 and 134 to 136) which will come into force on a day to be appointed.

The most important amendments are:

  • Removing the need for liquidators to obtain the sanction of the liquidation committee or the company’s creditors and trustees in bankruptcy to obtain the sanction of the creditors’ committee or the court prior to exercising their powers under schedules 4 and 5 to the Insolvency Act 1986 respectively (sections 120 and 121).
  • Allowing administrations to extend their term of office by one year by consent instead of the current 6 months (section 127).
  • Abolishing Fast Track IVAs (section 135).
  • Amending the provisions for progress reports in MVLs and CVLs and removing the provision that they are only required for liquidations of longer than one year (section 136).
  • Amending the provision for the power of sale to connected persons including directors, officers, shadow directors and non-employee associates of such a person or the company (section 129).

Deregulation Act 2015

The most important provisions are in section 19 and schedule 6, which come into force on 26 May 2015. However, paragraphs 1 to 4 and 6 to 23 of schedule 6 are not yet in force.

The most important amendments are:

  • Clarifying the circumstances when administrators can be appointed under schedule B1, section 22 when a winding up petition has been presented (schedule 6, paragraph 5).
  • Amending the definition of “wages or salary” across the Insolvency Act 1986 in relation to their treatment by social security legislation (schedule 6, paragraphs 24 to 28).
  • Reviewing the notification and termination of proxies under the Companies Act 2006 where a poll is taken less than 48 hours after it is demanded (schedule 6, paragraphs 29 to 30).

Some of the most significant changes introduced by these two Acts have not yet been brought into force. These include amendments to the directors’ disqualification legislation, repeal of deeds of arrangement and giving administrators the power to bring proceedings for wrongful and fraudulent trading.