UK Offence Report

Contents of proposal

paragraph 5.37(1)(b)(iii) of SCHEDULE 1 of The Insolvency (Amendment) Rules 2003

The provision has been revoked and no saving provision preserving liability for earlier conduct was found.

What the provision says

iii a statement that the debtor is aware that he commits an offence under section 262A if, for the purpose of obtaining the approval of his creditors to his proposal, he makes any false representation, or fraudulently does, or omits to do, anything.

Text as made, from legislation.gov.uk. © Crown copyright, reused under the Open Government Licence v3.0. This is the text as originally made; later amendments are not shown here.

Who it binds, and what has to be proved

Binds
a person
Conduct
making a false or misleading statement
Fault element
Requires proof of a state of mind
Burden of proof
No statutory defence — prosecution proves everything

The prosecution must prove both that the conduct happened and that it was done with the state of mind the provision names (for the purpose of obtaining, fraudulently).

The provision states no defence, so the prosecution bears the burden on every element of the offence.

Classifier’s reasoning: mens rea word in the offence-creating words: fraudulently, for the purpose of obtaining.

What would breach paragraph 5.37(1)(b)(iii) of SCHEDULE 1?

These are illustrations, not law. They are generated from the provision’s own words to show the shape of the offence. Whether any particular conduct is caught depends on the full text, on any amendment since, and on the facts.

  1. Entering a figure on a form or return that is known to be wrong under the Insolvency (Amendment) Rules 2003.
  2. Leaving out something the form asks for, where the omission is what makes the answer misleading.
  3. Producing a document to an official that has been altered since it was issued.

Penalty

Mode of trial
Not determined
Maximum fine
Not determined
Maximum prison (summary)
Not determined

no penalty is stated here: this instrument amends another one, and the penalty for the offence is in the instrument being amended.

No penalty was determined from this instrument. It may be in the enabling Act, or in a general penalties provision this pass did not connect to the offence. Absence of a figure here is not evidence that the offence carries no penalty.

Sentencing

Offences of this kind are usually sentenced under the guidelines below. This is a mapping by subject, not a finding about this provision, and the links go to a search of the Sentencing Council’s own site.

Prosecution figures

No published per-offence figure was found for this provision, and it could not be matched to a Ministry of Justice offence code. Offences created by statutory instrument very largely do not have one. Absence of a figure is not evidence that the offence is unused.

Status and lifecycle

Current status
Revoked
Revoked by
The Insolvency (Amendment) Rules 2013 (revoked)
Revoked on
1 October 2013
Made
8 August 2003
In force from
Not determined
Extent
Not stated

How this was established: the instrument was revoked by a later instrument found in this corpus.

What the instrument is for

(This note is not part of the Rules) — the explanatory note published with the instrument, © Crown copyright.

These Rules make a number of changes to the Insolvency Rules 1986 (S.I. 1986/1925) (“the 1986 Rules”). The changes to the 1986 Rules, the majority of which are set out in Schedule 1 of these Rules, are generally consequential on amendments made to the Insolvency Act 1986 (c. 45) by the Enterprise Act 2002 (c. 40). The main amendment is the substitution of Part 2 of the 1986 Rules by the provisions set out in Part 2 of Schedule 1. This Part of the Schedule sets out the detailed rules for the administration procedure that was introduced as Schedule B1 to the Insolvency Act 1986 by section 248 of the Enterprise Act 2002 in substitution for Part II of the Insolvency Act 1986. The substituted Part 2 of the 1986 Rules draws substantially on the existing rules but makes new provisions in consequence of the revised and extended administration procedures introduced by the Enterprise Act 2002. In particular, under Schedule B1: Entry into administration will include two new without court order entry routes into administration for companies and their directors and for holders of qualifying floating charges, in addition to the existing procedure for entry by court order. Administration will be subject to new time limits to ensure that the process is conducted quickly and efficiently. Administrators will have to send copies of their proposals to creditors within 8 weeks, and hold a creditors' meeting within 10. There will also be a time limit of 12 months as the initial maximum duration of the whole administration procedure and the administrator must fulfil his duties as soon as reasonably practicable. The administrator will be able to extend any of the time limits with the permission of the court, or with the consent of creditors. The administrator will be required to rescue the company, as a going concern, wherever this is reasonably practicable. In those cases where it is not possible, the objective will be to provide a better result for the creditors of the company as a whole than would be achieved in an immediate winding up and only where this is not possible will he or she realise property to make a distribution to secured or preferential creditors. The administrator will have powers to make payments to preferential and secured creditors in all circumstances, and to unsecured creditors with the permission of the court. The administrator will, on the filing of an appropriate notice, be able to move the company from administration into creditors' voluntary liquidation so that payments can be made to unsecured creditors without the leave of the court or, alternatively, to move from administration to dissolution in those cases where there are no further assets to be distributed. Parts 1, 3, 4, 9 and 10 of Schedule 1 make a number of amendments to the provisions in the 1986 Rules that relate to company voluntary arrangements, receiverships and liquidations, and rules of general application. These changes are consequential on the introduction of a share of assets for unsecured creditors known as the “prescribed part” by the Enterprise Act 2002. These amendments concern the provision of information for creditors, the powers for receivers to deal with the “prescribed part” and applications to disapply the “prescribed part”. There are a number of minor amendments that are consequential on the introduction of the new administration procedure and the abolition of Crown preference by the Enterprise Act 2002. Part 5 of Schedule 1 makes a number of amendments to the provisions of the 1986 Rules, which relate to individual voluntary arrangements. In particular, a number of amendments are made as a consequence of substituting a new section 261 and the introduction of sections 263A to 263G into the Insolvency Act 1986. These principally relate to the introduction of a new `fast-track' individual voluntary arrangement, which will be available only to undischarged bankrupts and in which only the Official Receiver will act as nominee or supervisor. It also contains more detailed rules of applications for annulment in cases where an individual voluntary arrangement has been approved and implemented. Part 6 of Schedule 1 makes a number of amendments to the provisions of the 1986 Rules, which relate to bankruptcy. In particular— Rules and references to summary administration are omitted; Rules in relation to income payments agreements are included; Rules relating to discharge from bankruptcy are amended; Rules to deal with a bankrupt’s interest in a dwelling-house are revised; and Rules are introduced to implement the provisions on bankruptcy restrictions orders (including interim bankruptcy restrictions orders) and bankruptcy restrictions undertakings. Part 7 of Schedule 1 introduces Part 6A into the 1986 Rules which relate to the individual insolvency registers which record individual voluntary arrangements, bankruptcy orders and bankruptcy restrictions orders matters. They replace existing rules for individual insolvency registers. Part 8 of Schedule 1 makes a number of amendments to the 1986 Rules which relate to court procedure and practice. Schedule 2 makes a number of amendments to Schedule 4 to the principal Rules. New forms are introduced and other forms are revised in consequence of the matters set out in Schedule 1. Minor amendments are made to a few forms unrelated to the changes made by the Enterprise Act 2002. The costs to business of the commencement of the provisions of the Enterprise Act 2002 are set out in the Regulatory Impact Assessment prepared for that Act. Copies of the assessment are available from the Policy Unit, The Insolvency Service, 21 Bloomsbury Street, London, WC1B 3QW.

Read the full note and every offence in this instrument

Other offences in the same instrument

How this was identified as an offence

Everything above rests on the judgement that this provision creates a criminal offence, rather than mentioning one. That judgement is made by rule, from the words of the provision, and this is the rule that made it — with a confidence of 0.92.

Basis
the provision says a person “commits an offence”; c10_offence_under_parent_act
Confidence
0.92 of 1.00

A provision that states a penalty for an offence created elsewhere can read very like one that creates an offence, and the rules can mistake the one for the other. If the text quoted above sets a penalty for something made an offence by another provision, treat the classification on this page with that in mind, and read the instrument.

Check the source