Insolvency Act 1986, section 411

Company insolvency rules

Part XV Subordinate Legislation

(1)Rules may be made—

(a)in relation to England and Wales, by the Lord Chancellor with the concurrence of the Secretary of State [F1109and, in the case of rules that affect court procedure, with the concurrence of the Lord Chief JusticeF1109] , or

(b)in relation to Scotland, by the Secretary of State,

for the purpose of giving effect to [F1110Parts A1F1110] to VII of this Act [F1111or the [F1112 EU RegulationF1112,F1111]] .

[F1113 (1A)Rules may also be made for the purpose of giving effect to Part 2 of the Banking Act 2009 (bank insolvency orders); and rules for that purpose shall be made—

(a)in relation to England and Wales, by the Lord Chancellor with the concurrence of—

(i)the Treasury, and

(ii)in the case of rules that affect court procedure, the Lord Chief Justice, or

(b)in relation to Scotland, by the Treasury.F1113]

[F1114 (1B)Rules may also be made for the purpose of giving effect to Part 3 of the Banking Act 2009 (bank administration); and rules for that purpose shall be made—

(a)in relation to England and Wales, by the Lord Chancellor with the concurrence of—

(i)the Treasury, and

(ii)in the case of rules that affect court procedure, the Lord Chief Justice, or

(b)in relation to Scotland, by the Treasury.F1114]

(2)Without prejudice to the generality of subsection (1), [F1115(1A)F1115][F1116 or (1B)F1116] or to any provision of those Parts by virtue of which rules under this section may be made with respect to any matter, rules under this section may contain—

(a)M35any such provision as is specified in Schedule 8 to this Act or corresponds to provision contained immediately before the coming into force of section 106 of the Insolvency Act 1985 in rules made, or having effect as if made, under section 663(1) or (2) of the [F1117the Companies Act 1985F1117] (old winding-up rules), and

(b)such incidental, supplemental and transitional provisions as may appear to the Lord Chancellor or, as the case may be, the Secretary of State [F1118or the TreasuryF1118] necessary or expedient.

[F1119 (2A)For the purposes of subsection (2), a reference in Schedule 8 to this Act to doing anything under or for the purposes of a provision of this Act includes a reference to doing anything under or for the purposes of the [F1120 EU RegulationF1120] (in so far as the provision of this Act relates to a matter to which the [F1120 EU RegulationF1120] applies).

(2B)Rules under this section for the purpose of giving effect to the [F1121 EU RegulationF1121] may not create [F1122 a new relevant offenceF1122] .F1119]

[F1123 (2C)For the purposes of subsection (2), a reference in Schedule 8 to this Act to doing anything under or for the purposes of a provision of this Act includes a reference to doing anything under or for the purposes of Part 2 of the Banking Act 2009.F1123]

[F1124 (2D)For the purposes of subsection (2), a reference in Schedule 8 to this Act to doing anything under or for the purposes of a provision of this Act includes a reference to doing anything under or for the purposes of Part 3 of the Banking Act 2009.F1124]

(3) In Schedule 8 to this Act “liquidator” includes a provisional liquidator[F1125 or bank liquidator F1125][F1126 or administrator F1126] ; and references above in this section to [F1127 Parts A1 F1127] to VII of this Act [F1128 or Part 2 [F1129 or 3 F1129] of the Banking Act 2009 F1128] are to be read as including [F1130 the Companies Acts F1130] so far as relating to, and to matters connected with or arising out of, the insolvency or winding up of companies.

[F1131 (3A)In this section references to Part 2 or 3 of the Banking Act 2009 include references to those Parts as applied to building societies (see section 90C of the Building Societies Act 1986).F1131]

(4)Rules under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(5)Regulations made by the Secretary of State [F1132or the TreasuryF1132] under a power conferred by rules under this section shall be made by statutory instrument and, after being made, shall be laid before each House of Parliament.

(6)Nothing in this section prejudices any power to make rules of court.

[F1133 (7)The Lord Chief Justice may nominate a judicial office holder (as defined in section 109(4) of the Constitutional Reform Act 2005) to exercise his functions under this section.F1133]

Definitions used in section 411 3

relevant offence

In this Part “relevant offence” means a criminal offence punishable with imprisonment for more than two years or punishable on summary conviction with imprisonment for more than three months or with a fine of more than level 5 on the standard scale (if not calculated on a daily basis) or with a fine of more than £100 a day.

Defined in s.422A · see it in the full Act
administrator

1 (1) For the purposes of this Act “administrator” of a company means a person appointed under this Schedule to manage the company’s affairs, business and property.

Defined in Sch.B1 para.1(1) · see it in the full Act
the company

2 Section 233B does not apply in relation to a contract for the supply of goods or services to a company (“the company”) where any of paragraphs 3 to 11 applies.

Defined in Sch.4ZZA para.2 · see it in the full Act

Cases considering section 411 17

Lewis v Commissioner of Inland Revenue & Ors

[2000] EWCA Civ 274 · 2 November 2000

Confirms the statutory basis for making rules giving effect to the insolvency provisions. The court used the rule-making structure to reject an interpretation of section 115 that would duplicate the rules. (see paras [13]; [32]) Confirms that rules may specify fees, costs, charges and other expenses treated as winding-up expenses. This supported reading section 115 as a priority provision rather than a complete payment entitlement. (see paras [13]; [29]-[32])

Brian English v Secretary of State for Business and Trade

[2026] EWHC 1711 (Admin) · 9 July 2026Limits

Confirms the Lord Chancellor’s power to prescribe disapplying circumstances in insolvency rules. Designing or amending the rule was for the Lord Chancellor, not judicial rule-making. (see paras [10]; [22(1)]; [25(1)])

Masri (Respondent) v Consolidated Contractors International Company SAL and others and another (Appellant) and another

[2009] UKHL 43 · 30 July 2009

The general power to make insolvency rules was sufficient to support a rule permitting service abroad of a public-examination order. It illustrated the potential breadth of procedural rule-making. (see para [14])

1 more judgment, and what each says about section 411, are in the case-law panel in the full Act.

Amendments and notes

41 notes from legislation.gov.uk

Amendments

  1. F1109Words in s. 411(1)(a) inserted (3.4.2006) by Constitutional Reform Act 2005 (c. 4), ss. 15(1), 148, Sch. 4 para. 188(2); S.I. 2006/1014, art. 2(a), Sch. 1
  2. F1110Words in s. 411(1) substituted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 3 para. 22(2) (with ss. 2(2), 5(2))
  3. F1111Words in s. 411(1) inserted (3.5.2002) by S.I. 2002/1037, reg. 3(1)
  4. F1112Words in s. 411(1) substituted (26.6.2017) by The Insolvency Amendment (EU 2015/848) Regulations 2017 (S.I. 2017/702), reg. 1, Sch. para. 24 (with regs. 3, 4)
  5. F1113S. 411(1A) inserted (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 125(2), 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.
  6. F1114S. 411(1B) inserted (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 160(2), 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.
  7. F1115Words in s. 411(2) inserted (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 125(3)(a), 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.
  8. F1116Words in s. 411(2) inserted (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 160(3), 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.
  9. F1117Words in s. 411(2)(a) substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009, (S.I. 2009/1941) arts. 2(1), 8, {Sch. 1 para. 79} (with art. 10, Sch. 1 para. 84)
  10. F1118Words in s. 411(2) inserted (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 125(3)(b), 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.
  11. F1119S. 411(2A)(2B) inserted (3.5.2002) by S.I. 2002/1037, reg. 3(2)
  12. F1120Words in s. 411(2A) substituted (26.6.2017) by The Insolvency Amendment (EU 2015/848) Regulations 2017 (S.I. 2017/702), reg. 1, Sch. para. 24 (with regs. 3, 4)
  13. F1121Words in s. 411(2B) substituted (26.6.2017) by The Insolvency Amendment (EU 2015/848) Regulations 2017 (S.I. 2017/702), reg. 1, Sch. para. 24 (with regs. 3, 4)
  14. F1122Words in s. 411(2B) substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 37 (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)
  15. F1123S. 411(2C) inserted (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 125(4), 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.
  16. F1124S. 411(2D) inserted (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 160(4), 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.
  17. F1125Words in s. 411(3) inserted (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 125(5)(a), 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.
  18. F1126Words in s. 411(3) inserted (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 160(5)(a), 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.
  19. F1127Words in s. 411(3) substituted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 3 para. 22(3) (with ss. 2(2), 5(2))
  20. F1128S. 411(3) text amended (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 125(5)(b), 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.
  21. F1129Words in s. 411(3) inserted (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 160(5)(b), 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.
  22. F1130Words in s. 411(3) substituted (1.10.2007) by The Companies Act 2006 (Commencement No. 3, Consequential Amendments, Transitional Provisions and Savings) Order 2007 (S.I. 2007/2194), art. 10(1), Sch. 4 para. 44 (with art. 12)
  23. F1131S. 411(3A) inserted (29.3.2009) by The Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805), art. 13
  24. F1132Words in s. 411(5) inserted (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 125(6), 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.
  25. F1133S. 411(7) inserted (3.4.2006) by Constitutional Reform Act 2005 (c. 4), ss. 15(1), 148, Sch. 4 para. 188(3); S.I. 2006/1014, art. 2(a), Sch. 1

Modifications

  1. C1178S. 411 extended by Company Directors Disqualification Act 1986 (c. 46, SIF 27), ss. 21(2), 25
  2. C1179S. 411 applied (1.12.1994) by S.I. 1994/2421, arts. 4(3)(e), 6(3)(e)
  3. C1180S. 411 applied (with modifications) (1.10.2011) by Postal Services Act 2011 (c. 5), ss. 73(3), 93(2)(3); S.I. 2011/2329, art. 3 (with arts. 4, 5)
  4. C1181S. 411 extended (with modifications) (27.3.2012 for specified purposes) by Health and Social Care Act 2012 (c. 7), ss. 130(9), 306(1)(d), (4)
  5. C1182S. 411 modified (3.2.2017) by Housing and Planning Act 2016 (c. 22), ss. 102(5), 216(3) (with ss. 116, 117); S.I. 2017/75, reg. 3(c)
  6. C1183Third Group of Parts (Pts. 12-19) applied to limited liability partnerships (with modifications) (E.W.S.) (6.4.2001) by S.I. 2001/1090, reg. 5, Schs. 3, 4 (as amended (4.3.2004) by S.I. 2004/355, art. 10; (1.10.2005) by S.I. 2005/1989, reg. 3, Sch. 2 (with reg. 4); and (8.12.2017) by S.I. 2017/1119, reg. 1(1), Sch. 1 Pts. 2, 3)
  7. C1184S. 411 modified (31.1.2019) by Technical and Further Education Act 2017 (c. 19), ss. 32(1), 47(2); S.I. 2018/1161, reg. 3(a)
  8. C1185S. 411 extended (temp.) (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 4 paras. 3, 4 (with ss. 2(2), 5(2), Sch. 4 para. 1)
  9. C1186S. 411 applied (with modifications) (8.7.2021) by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), regs. 2, 37 (with reg. 5) (as amended (4.1.2024) by S.I. 2023/1399, regs. 1(2), 4, 11)
  10. C1187S. 411 applied (with modifications) (E.W.) (23.2.2024) by The Water Industry (Special Administration) Regulations 2024 (S.I. 2024/205), regs. 2(1), 5(1), 49 (with reg. 64)
  11. C1188S. 411(1)(b)(2) functions made exercisable concurrently (9.2.2018) by The Scotland Act 1998 (Insolvency Functions) Order 2018 (S.I. 2018/174), arts. 1(1), 2 (with art. 6(1))
  12. C1189S. 411(1)(b)(2) functions made exercisable concurrently (9.2.2018) by The Scotland Act 1998 (Insolvency Functions) Order 2018 (S.I. 2018/174), arts. 1(1), 5 (with art. 6(2))
  13. C1190S. 411(1B) extended (1.3.2014 for specified purposes, 13.7.2018 for E.W. in so far as not already in force) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 121(3), 148(5); S.I. 2014/377, art. 2(1)(b), Sch. Pt. 2; S.I. 2018/848, art. 2(b)
  14. C1191S. 411(4) excluded (9.2.2018) by The Scotland Act 1998 (Insolvency Functions) Order 2018 (S.I. 2018/174), arts. 1(1), 4(1)
  15. C1192S. 411(5) excluded (9.2.2018) by The Scotland Act 1998 (Insolvency Functions) Order 2018 (S.I. 2018/174), arts. 1(1), 4(3)

Marginal citations

  1. M351985 c. 65.