Committee for the Economy
Committee Stage - The Insolvency (Amendment) Bill
As part of the Assembly’s legislative processes, the Insolvency (Amendment) Bill has been referred to the Assembly’s Committee for the Economy so that the Committee can consider and take evidence on the Bill and report its opinion to the Assembly.
In order to inform the Committee Stage of the Bill and to help with the development of any necessary amendments, the Committee is seeking views from stakeholders on the objectives, proposals and potential consequences of the Bill.
The Committee would therefore welcome your views/comments on the clauses and schedules of the Bill including any related proposals for amendments.
You can read the Insolvency (Amendment) Bill and the explanatory and financial memorandum in full at the following link: Committee for the Economy - Primary legislation A short description of the Bill is provided below.
The Committee would welcome a related written response in the format of a Microsoft Word document addressing any of the clauses and schedules of the Bill before noon on Tuesday 30 September 2025 submittedto Committee.Economy@niassembly.gov.uk.
It is understood that the Insolvency (Amendment) Bill has been brought forward in order to bring insolvency arrangements in Northern Ireland largely into line with England and Wales.
The Bill is understood to include a limited number of Northern Ireland-specific measures which relate solely to the provision of information to the Enforcement of Judgements Office.
The Department has indicated that the other provisions of the Bill are designed to improve the administration of insolvencies and make the process more efficient. The provisions of the Insolvency (Amendment) Bill are summarized as follows:
- Provisions to make it possible for directors of companies in administration to be held personally liable for fraudulent or wrongful trading.
- Provisions to enable administrators and liquidators to assign rights of action, for example, for fraudulent or wrongful trading, to third parties.
- Provisions to ensure that the proceeds of certain categories of claim, such as actions for fraudulent or wrongful trading, go to ordinary unsecured creditors, not floating charge holders.
- Provisions to remove the need for liquidators and trustees in bankruptcy to obtain sanction from creditors or the Department before taking certain actions.
- Provisions ensure that engagement with creditors, and, in the case of companies, contributories, normally takes place in ways which do not involve a physical meeting.
- Provisions to give creditors in corporate and individual insolvency proceedings the right to opt out of receiving routine communications from the office-holder.
- Provisions to establish when the liquidator is to have their release if a winding-up order is rescinded.
- Provisions to increase the period by which an administrator’s appointment can be extended with consent from 6 months to one year.
- Provisions to enable payments to be made to unsecured creditors out of the “prescribed part” in administration without court permission.
- Delegated legislation-making powers which would allow a dividend to be paid without the creditor having to submit a claim where the debt is below a prescribed amount.
- Provisions to provide for the Official Receiver to become trustee, directly on the making of a bankruptcy order without any period as receiver and manager.
- Provisions to abolish fast-track voluntary arrangements, administered by the Official Receiver, for bankrupts.
- Provisions to strengthen existing legislative provision aimed at ensuring that businesses which are allowed to trade during insolvency proceedings have continued access to essential goods and services.
- Provisions to ensure that the Enforcement of Judgments Office is notified of the presentation and passing of resolutions for the voluntary winding up of a company.
- Provisions to ensure that the appointment of an administrator cannot be obstructed by the presentation of a winding up petition.
- The repeal of provisions allowing the High Court to order debts due to companies which are being compulsorily wound up to be paid into a bank appointed by the Court instead of to the liquidator.
- Provisions to enable the Department and the Official Receiver to obtain information and records relating to the conduct of directors of insolvent companies directly from the person who has the information or records instead of having to go through the insolvency office-holder.
- Provisions to enable insolvency practitioners, as well as the Official Receiver, to be appointed to act as interim receiver, in the period between presentation of a bankruptcy petition and the making of a bankruptcy order.
- Provisions to provide that a statement of affairs will no longer have to be submitted in creditor petition bankruptcies unless the Official Receiver asks for one.
- Provisions to provide that, in company administrations, the ordinary unsecured creditors, are not to be involved in deciding whether the administrator is to be granted release unless that there are funds available, other than from the prescribed part of the proceeds of any assets subject to floating charges, to enable a distribution to be made to the ordinary unsecured creditors.
- Provision to do away with the requirement to send notice of intention to appoint an administrator to prescribed persons in cases where the circumstances of the case are such that the appointment cannot be challenged.
- Provisions to update the Insolvent Partnerships Order (Northern Ireland) 1995.
As indicated, the Committee would welcome a related written response in the format of a Microsoft Word document addressing any of the above before noon on Tuesday 30 September 2025 submittedto Committee.Economy@niassembly.gov.uk.
Please see the following link to the Guide to submitting evidence to Assembly Committees in written or other formats.
For you information, please also see the following link to the Economy Committee webpage including information on its current membership: Committee for the Economy.
Should you have any queries in respect of the Committee Stage of the Bill , please do not hesitate to contact Committee staff at the following email address: Committee.Economy@niassembly.gov.uk.
