Citation, commencement, extent and interpretation

1. —(1) These Regulations may be cited as the Pension Protection Fund (Moratorium and Arrangements and Reconstructions for Companies in Financial Difficulty) Regulations 2020, and come into force on 7th July 2020.

(2) This regulation and regulation 3 extend to England and Wales, Scotland and Northern Ireland.

(3) Regulation 2 extends to England and Wales and Scotland.

(4) In these Regulations—

“ the 1986 Act ” means the Insolvency Act 1986;

“ the 2006 Act ” means the Companies Act 2006;

“ CIO ” means a Charitable Incorporated Organisation;

“ LLP ” means a limited liability partnership registered under the Limited Liabilities Partnerships Act 2000 ;

“relevant CCBS” has the meaning given in article 1(2) of the Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) Order 2014;

“relevant society” has the meaning given by the modification to section 901A(4) of the Companies Act 2006 in paragraph 3 of Schedule 2A to the Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) Order 2014;

“ the Board ” means the Board of the Pension Protection Fund .

Board of the Pension Protection Fund rights in respect of a moratorium

2. —(1) Paragraph (2) applies where—

(a) a moratorium (within the meaning of Part A1 of the 1986 Act ) which on or after the date on which these Regulations come into force—

(i) is in force in relation to a company, LLP , CIO or relevant CCBS that is an employer in respect of an eligible scheme; or

(ii) is or has been in force in relation to a company, LLP , CIO or relevant CCBS that has been an employer in respect of an eligible scheme at any time during the moratorium; and

(b) the trustees or managers of the scheme are a creditor of the company, LLP , CIO or relevant CCBS .

(2) The rights which are exercisable by the trustees or managers of the scheme as a creditor of the company, LLP , CIO or relevant CCBS under or by virtue of—

(a) section A12 (creditor consent for the purposes of section A11) of the 1986 Act ; or

(b) a court order under section A44(4)(c) (challenge to directors' actions) of the 1986 Act ,

are instead to be exercised by the Board to the exclusion of the trustees or managers of the scheme.

(3) Before exercising a right under paragraph (2) the Board must consult the trustees or managers of the scheme.

Board of the Pension Protection Fund rights when arrangement or reconstruction for company in financial difficulty is proposed

3. —(1) This regulation applies where—

(a) a company , LLP or relevant society in respect of which a compromise or arrangement (within the meaning of section 901A of the 2006 Act (application of this part) ) is proposed is an employer in respect of an eligible scheme; and

(b) the trustees or managers of the scheme are a creditor of the company , LLP or relevant society to whom the compromise or arrangement is proposed.

(2) The Board may exercise those rights exercisable under Part 26A of the 2006 Act (arrangements and reconstructions: companies in financial difficulty) by the trustees or managers of the scheme as a creditor of the company , LLP or relevant society as if the Board is a creditor of the company.

(3) The Board may exercise the rights mentioned in paragraph (2) in addition to the exercise of those rights by the trustees or managers of the scheme.

(4) But the rights which are exercisable by the trustees or managers of the scheme as a creditor of the company , LLP or relevant society to vote in a meeting summoned under section 901C(1) of the 2006 Act (court order for holding of meeting) are instead to be exercised by the Board to the exclusion of the trustees or managers of the scheme.

(5) Before exercising the right under paragraph (4) the Board must consult the trustees or managers of the scheme.