Insolvency Act 1986, section 160

Delegation of powers to liquidator (England and Wales)

Part IV Winding Up of Companies Registered under the Companies Acts

(1)F340Provision may be made by rules for enabling or requiring all or any of the powers and duties conferred and imposed on the court in England and Wales ... in respect of the following matters—

[F341 (a)the seeking of decisions on any matter from creditors and contributories,F341]

(b)the settling of lists of contributories and the rectifying of the register of members where required, and the collection and application of the assets,

(c)the payment, delivery, conveyance, surrender or transfer of money, property, books or papers to the liquidator,

(d)the making of calls,

(e)the fixing of a time within which debts and claims must be proved,

to be exercised or performed by the liquidator as an officer of the court, and subject to the court’s control.

(2)But the liquidator shall not, without the special leave of the court, rectify the register of members, and shall not make any call without either that special leave or the sanction of the liquidation committee.

Cases considering section 160 5

The Joint Administrators of LB Holdings Intermediate 2 Ltd v Lehman Brothers Holdings Inc

[2015] EWCA Civ 485 · 14 May 2015

Section 160(1) permits rules delegating the court’s power to make calls to the liquidator. It supports the conclusion that calls are made by the liquidator as an officer of the court (see paras [124]-[127]). Section 160(2) restricts a liquidator’s ability to make calls without the required court leave or liquidation committee sanction. It reinforces the procedural character of the call power (see para [124]).

Scott-Hake & Anor v Frost & Anor

[2020] EWHC 3677 (Ch) · 30 January 2020Interprets

Interprets section 160(1) as empowering subordinate legislation concerning delegation to liquidators, rather than itself delegating the court’s powers. Confirms that the rule-making power extends to the making of calls, with the operative delegation supplied by the 2016 Rules.

The Joint Administrators of LB Holdings Intermediate 2 Limited v The Joint Administrators of Lehman Brothers International (Europe) and others

[2017] UKSC 38 · 17 May 2017

The provision permits the contributory functions of the court to be delegated to the liquidator, subject to judicial control. It confirms that calls are made by the liquidator on behalf of the court. (see para [132])

What each judgment says about section 160 is in the case-law panel in the full Act.

Amendments and notes

4 notes from legislation.gov.uk

Amendments

  1. F340Words in s. 160(1) omitted (1.10.2009) by virtue of The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009, (S.I. 2009/1941) arts. 2(1), 8, {Sch. 1 para. 75(18)} (with art. 10, Sch. 1 para. 84)
  2. F341S. 160(1)(a) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 39; S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)

Modifications

  1. C443S. 160 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 103, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 2 (as amended (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(3))
  2. C444S. 160 applied (with modifications) (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), Pt. 3 reg. 1, Sch. 2 paras. 3, 5 Table (with reg. 24)