The Small Business, Enterprise and Employment Act 2015: Restructuring and Insolvency


Following Parliamentary approval in March 2015, this Implementation Timetable sets out the key dates and changes which have been published to date on the insolvency provisions of the Small Business, Enterprise and Employment Act. This timetable was updated in October 2015.

We will, of course, provide confirmation and updates as and when further guidance is published.

The Small Business, Enterprise and Employment Act

When will the insolvency-related provisions come into force?

Following Parliamentary approval in March 2015, there has been a level of uncertainty around the implementation timeline for certain company law and insolvency provisions. In particular, many of the changes to the Insolvency Act 1986 will come into force without transitional provisions and so will apply automatically to existing insolvency proceedings.

We have developed a timeline setting out key dates and changes which have been published to date, as well as dates for the future. We will, of course, provide confirmation and updates as and when further guidance is published.

Implementation Timeline



What will change?



Effective 26 May



Creditors can extend administration period for longer


Consensual extension of an administration is increased to one year, from six months
Amends para. 76(2) of Schedule B1 to the Insolvency Act 1986

Administrators can distribute prescribed part without court's approval


Carve-out created from the usual restriction placed on administrators making distributions to unsecured creditors
Amends para. 65(3) of Schedule B1 to the Insolvency Act 1986

Administrators cannot put company into CVL using para. 83 procedure if just to distribute the prescribed part


Limits the use of a CVL solely for prescribed part distributions and will have an impact on existing administration proposals/strategy
Amends para. 83 of Schedule B1 to the Insolvency Act 1986

Liquidators and trustees in bankruptcy will not  need the court's sanction to exercise certain powers

S120 and S121

Includes the power to pay classes of creditors in full, compromise claims and bring legal proceedings for preferences/wrongful trading  
Amends ss165, 167 and 314 of the Insolvency Act 1986 and related schedules 

Challenge period for approval of an IVA


Any challenge must be brought within 28 days of the meeting called to consider the IVA proposal
Amends s262(3)(a) of the Insolvency Act 1986

Abolition of fast track IVAs


Procedure will no longer be available unless a debtor submitted a fast track IVA proposal and statement of affairs to the Official Receiver before 26 May
Omits ss263A to 263G of the Insolvency Act 1986 

Regular voluntary liquidation progress reports required


A progress report must be issued in a voluntary liquidation even if the liquidator changes within the first year
Amends ss92A and 104A and Schedule 10 to the Insolvency Act 1986

Definition of shadow director set out for the purposes of the Insolvency Act 1986 and Company Directors Disqualification Act 1986 


No real change in substance
Amends s251 of the Insolvency Act 1986 and s22(5) of the Company Directors Disqualification Act 1986

Application of general duties of directors to shadow directors where and to the extent that they are capable of so applying


Amends s170(5) of the Companies Act 2006

Enabling provision effective 26 May but subject to further regulation



Creditors of individuals and corporates will not need to submit a proof of debt to be paid out if their claim is "small"

S131 and S132

What constitutes a small debt and further details will be set out in the Insolvency Rules 2016 (£1,000 limit mooted)
Amends the enabling provision in Schedules 8 and 9 to the Insolvency Act 1986

Regulation of sales to connected parties in administration 


Allows the introduction of new regulations to deal with sales in administration to connected persons, which are concluded without the prior consent of the creditors
Will only be used if the industry does not comply with the findings of the Graham report and the imminent new SIP 16

Effective October 2015



Reduction of time it takes to strike off and dissolve a company from the public register


Reduction for voluntary strike-off, from three to four months to approximately two months; and for compulsory strike-off, from five to six months to around 3.5 months 
Amends Part 31 of the Companies Act 2006

Changes to directors' disqualification regime

Part 9
SS104-106 and SS108-111

New grounds for bringing disqualification proceedings against directors who have been convicted of offences overseas in connection with the promotion, formation or management of a company overseas, or who are not directors but who exert requisite influence over a director
Revised list of matters for court to take into account when considering whether a person is unfit to be a director of a company, including overseas conduct
Secretary of State will be able to apply for a compensation order against a disqualified director where the misconduct has caused identifiable loss to creditors 
Extension of the period in which the Secretary of State may apply for a disqualification order against a director of an insolvent company from two to three years
Amends the Company Directors Disqualification Act 1986

Wrongful/fraudulent trading: Extension to administration


Administrators have the power to issue proceedings for wrongful or fraudulent trading
Inserts new s246ZA, s246ZB and s246ZC into the Insolvency Act 1986

Allowing corporate insolvency office holders to assign personal actions for benefit of estate


Liquidators and administrators can assign their right to a claim for wrongful trading, fraudulent trading, preferences or transactions at undervalue
Inserts new s246ZD into the Insolvency Act 1986

Confirmation that floating chargeholder does not get the benefit of any office holder action or assignment


The proceeds from any preference, transaction at an undervalue, wrongful or fraudulent trading claim (or assignment) brought by an administrator or liquidator will not form part of the assets available to meet the claims of the holders of any floating charge security (unless displaced by a CVA or Companies Act 2006 reconstruction)
Inserts new s176ZB into the Insolvency Act 1986

Changes to insolvency practitioner regulatory regime

SS137 to 146
Schedule 11

The regulatory framework for insolvency practitioners changes.  Recognised professional bodies (RPBs) will authorise insolvency practitioners, not the Secretary of State, who will take on the role of regulator with power to impose directions and financial or other sanctions on RPBs or take direct actions against individuals.  Insolvency practitioners will have until 30 September 2016 to make the change   
New series of objectives for RPBs
Secretary of State will be able to increase the number of RPBs or introduce a single regulator for the profession, if he thinks fit in due course
Inserts new s391B, s391C, s391D and s391E into the Insolvency Act 1986

Anticipated 2016



Companies will be required to keep a public "PSC register" 
April 2016*: Companies will be required to keep a register of people with significant control 
June 2016*: Information must be filed at Companies House (N.B. no requirement to do so before this date)

S81, S82 and Schedule 3

UK-incorporated companies (other than publicly traded companies with disclosure obligations) will have to keep a register of PSCs and file information about them at Companies House.  They are broadly individuals who, directly or indirectly, hold over 25 per cent of the shares or voting rights in a company, can appoint or remove a majority of the directors or can otherwise exercise significant influence or control over a company
Amends the Companies Act 2006 

June 2016*: Annual return replaced by "confirmation statement"


Instead of filing an annual return, companies will have to check and confirm that they have delivered, or are delivering with their confirmation statement, the information they were required to deliver to Companies House during the preceding 12 months. Private companies will (from June 2016) be able to opt out of keeping all or any of their registers of members, directors, directors’ residential addresses, secretaries and PSCs.  Instead, companies will have to ensure that equivalent information is available at Companies House, where it will be on the public register and available for inspection
Inserts a new Part 24 into the Companies Act 2006 in place of existing Part 24

Ban on corporate directorships*


Previously scheduled for October 2015.  The Government has now confirmed that this has been put back to October 2016.  The Government has consulted on potential exceptions to the ban.  It is currently considering the responses to its consultations with a view to introducing any exceptions at the same time as the ban.  Under s156C of the Companies Act 2006 there will be a transition period of one year.  Any remaining corporate directors will automatically cease to be directors unless they fall within an exception

Certain large and listed corporates to publicise payment practices and policies


On 25 March the Government issued a statement saying these provisions will come into force in April 2016 and secondary legislation to define "large companies" will be issued at the same time

Provisions with no implementation date published 



Physical creditors meetings no longer default option**


Abolishes creditors' and contributories' meetings as the default means of decision-making in insolvency procedures.  The office holder will usually be able to decide the alternative decision-making procedure.  He/she must call a meeting if a prescribed proportion of creditors (or contributories) demand it.  He/she must also call a meeting if the Act, the Rules, other legislation or the court require one and can call a meeting if the Act, the Rules, other legislation or the court allow one.  He is also bound by any provisions or court order requiring/prohibiting a particular decision-making procedure
The Secretary of State may, by regulations, abolish other forms of meeting in due course.  As drafted, the abolition will apply, in principle, to the approval of administrators' proposals
Inserts new s246ZE and s379ZA into the Insolvency Act 1986

New deemed consent procedure**


An office holder will circulate details of his proposed decision, which is deemed consented to by the creditors or contributories if a certain proportion of them do not object
See also the Insolvency Rules 2016.  Minimum number of consents may be changed by regulation
Inserts new s246ZF and s379ZB into the Insolvency Act 1986

Supervisor may be first trustee in bankruptcy


The Official Receiver will automatically become the trustee in bankruptcy on the making of a bankruptcy order unless the court orders it can be the supervisor of a preceding IVA 
Creates a new 291A

Getting rid of certain notices**  


Creditors (of both individuals and corporates) will be able to opt out of certain notices issued by insolvency office holders 
Inserts new s379C and s383A into the Insolvency Act 1986
The draft Insolvency Rules 2016 go into more detail

Remaining changes to directors' disqualification regime***

Part 9

A liquidator, administrative receiver or administrator will have to submit a report on the conduct of a director in all cases, even if the relevant office holder does not consider the director unfit to hold office
Amends the Company Directors Disqualification Act 1986

* Proposed date according to the timetable issued in September 2015 on Companies House website

** Anticipated to come into force with corresponding Insolvency Rules 2016 in October 2016

*** Expected to be up and running in June 2016, when the Insolvency Service activates its electronic reporting systems

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dentons | Attorney Advertising

Written by:


Dentons on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide

JD Supra Privacy Policy

Updated: May 25, 2018:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the "My Account" dashboard (available if you are logged into your JD Supra account).

Collection of Information

Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:

  • Email
  • First Name
  • Last Name
  • Company Name
  • Company Industry
  • Title
  • Country

Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.

Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.

Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our "Cookies Guide" page.

How do we use this information?

We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:

  • Operate our Website and Services and publish content;
  • Distribute content to you in accordance with your preferences as well as to provide other notifications to you (for example, updates about our policies and terms);
  • Measure readership and usage of the Website and Services;
  • Communicate with you regarding your questions and requests;
  • Authenticate users and to provide for the safety and security of our Website and Services;
  • Conduct research and similar activities to improve our Website and Services; and
  • Comply with our legal and regulatory responsibilities and to enforce our rights.

How is your information shared?

  • Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.
  • If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
  • Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.
  • Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
  • Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.
  • Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.
  • To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.

How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
    • Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
    • Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at:

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

  1. Improve the user experience on our Website and Services;
  2. Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;
  3. Track anonymous site usage; and
  4. Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

  • "Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).
  • "Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.
  • "Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

  • HubSpot - For more information about HubSpot cookies, please visit
  • New Relic - For more information on New Relic cookies, please visit
  • Google Analytics - For more information on Google Analytics cookies, visit To opt-out of being tracked by Google Analytics across all websites visit This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at:

- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.