UK Offence Report

The Limited Liability Partnerships (Amendment etc.) Regulations 2021

UK Statutory Instrument 2021 No. 60 — creates 5 criminal offences.

5offences created
0recorded in force
0revoked
Made
15 January 2021
In force from
16 February 2021
Extent
Not stated
Subject
Corporate, financial services, company law, employment, charity, electoral and tax
Made under
Limited Liability Partnerships Act 2000, SI 2020/643, Schedule 8 to the Corporate Insolvency and Governance Act 2020

Explanatory note

(This note is not part of the Regulations) — published with the instrument by the department that made it. © Crown copyright, reused under the Open Government Licence v3.0.

The Corporate Insolvency and Governance Act 2020 (c. 12) (“the 2020 Act”) makes provision for new measures designed to help UK companies avoid insolvency. These Regulations make provision relating to the application of those measures to limited liability partnerships (“LLPs”). They replace the Limited Liability Partnerships (Amendment etc.) Regulations 2020 which are revoked by this instrument. The Limited Liability Partnerships Regulations 2001 (S.I. 2001/1090) (“the 2001 Regulations”) apply the provisions of the Insolvency Act 1986 (c. 45) (“the 1986 Act”) to LLPs registered in Great Britain. The Limited Liability Partnership Regulations (Northern Ireland) 2004 (S.I. 2004/307) (“the 2004 Regulations”) do likewise for LLPs registered in Northern Ireland, applying the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I.19)) (“the 1989 Order”). The provisions applied to LLPs by those enactments include new Part A1 of the 1986 Act and new Part 1A of the 1989 Order, which both were inserted by the 2020 Act and provide for a general moratorium which allows companies in financial distress a breathing space in which to explore rescue and restructuring options free from creditor action. Regulation 3 introduces Schedule 1, which makes amendments to the modifications to the 1986 Act as it applies to LLPs contained in Schedule 3 to the 2001 Regulations. Schedule 1 inserts the appropriate modifications to Part A1 of the 1986 Act as it applies to LLPs and makes consequential amendments to other modifications contained in Schedule 3. Regulation 4 introduces Schedule 2, which does the same for the 2004 Regulations and the 1989 Order. The Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009 (S.I. 2009/1804) (“the 2009 Regulations”) apply certain provisions of the Companies Act 2006 (c. 46) (“the 2006 Act”) to LLPs. Regulation 5 introduces Schedule 3, which makes amendments to the 2009 Regulations to apply new Part 26A of the 2006 Act to LLPs with appropriate modifications and makes consequential amendments following amendments made to the 2006 Act by the 2020 Act. Part 26A of the 2006 Act was inserted by the 2020 Act to allow struggling companies, or their creditors or members, to propose a new restructuring plan proposal between the company and its creditors and/or members. Regulations 6 and 7 apply the temporary provision contained in Schedules 4 and 8 to the 2020 Act to LLPs. This provision makes temporary modifications to moratoriums in light of the Covid-19 pandemic. No specific impact assessment has been prepared for this instrument as the effects of the relevant insolvency measures being applied to LLPs are covered by the impact assessment published alongside the Corporate and Insolvency Act 2020. An Explanatory Memorandum is published alongside this instrument on www.legislation.gov.uk.

Offences created by this instrument

What Parliament said about it

Hansard was searched for this instrument by name and returned nothing. That is the ordinary outcome: an instrument laid under the negative procedure is usually never debated, and becomes law without a word said about it in either House.

How Parliament handled it

This instrument became law without a debate or a vote. Under the negative procedure it took effect unless a motion to stop it succeeded, and none was tabled.

Procedure
Made negative — law unless a motion to stop it succeeded
Could either House amend it?
No. A statutory instrument is put to each House as a whole thing, to be approved or not. Neither House can change a word of it.

Procedural history

From Parliament's Statutory Instruments service. Parliamentary material is reused under the Open Parliament Licence v3.0.

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