Small Business, Enterprise and Employment Act 2015: COMMENCEMENT 26 MAY 2015
Section 129 of the Act provides statutory authority for the Secretary of State to introduce statutory instruments to regulate the sale of company businesses out of Administration to “connected persons”. A connected person can include both connected individuals and connected companies.
This implication of section 60A (inserted into Schedule B1 of the Insolvency Act 1986) is that any such future changes are likely to involve Administrators obtaining creditors approval to a sale of the company’s business and assets to common management, and this appears to be an attempt to both create understanding of the process with creditors and also include them in any such decision-making, which has for the past few years been subject to severe criticism in the press.
As of writing, although this provision commences on 26 May 2015 the actual implementation of any proposed change is yet to happen and so for now has no effect. However, it is quite possible that the necessary statutory instrument could be introduced by the Secretary of State very shortly after this date and accordingly Insolvency Practitioners should be prepared and sensitive to any such proposed changes.
If you would like to discuss any aspects of these changes (or any other changes introduced by the Act as mentioned in the previous posts), please do not hesitate to contact me or my colleagues at Francis Wilks & Jones.
This is part of a series of posts on the Small Business, Enterprise & Employment Bill that has now come into force on 26 March 2015 following the grant of Royal Assent and is now the Small Business, Enterprise and Employment Act 2015 (“the Act”).
This series of posts is intended to update the readers of the key changes, which should radically transform the transparency of the marketplace as regards the operation, control, ownership and risk associated to limited companies in the UK.
We have not addressed all of the issues described in our previous posts, to avoid duplication, but would welcome any queries from the reader in this respect.
The commencement of these changes is different dependant on which part of the Act is being reviewed (Section 164 of the Act defines commencement) and we have highlighted below the relevant commencement dates. Where we below stated “to be announced” this means it has not yet come into force and will commence upon the making of a Commencement Order.
The changes as set out below will be extremely important to all directors, companies and individuals with business in the future and it cannot be emphasised too strongly how important it is that you are prepared for these proposed changes. At Francis Wilks & Jones we can advise on all matters subject to these posts.