PART 10

PARTNERSHIPS

(August 2008)

16.150 Winding-up order against partnership only

Where a winding-up order is made against a partnership under article 7 of the Insolvent Partnerships Order 1994 (IPO) where there are no connected petitions presented against any of its members, the normal meetings provisions of Part IV of the Insolvency Act 1986 and the guidance in this chapter as regards meetings in liquidations apply e.g. discretion to call first meetings [Note 1].

16.151 Winding-up of partnership and one or more members

Where a winding-up order is made against a partnership under article 8 of the IPO and concurrent bankruptcy orders are made against one or more of the members, the official receiver is appointed trustee of the bankruptcy estate(s) (not receiver and manager) upon the making of the bankruptcy order(s). The official receiver also becomes "the responsible insolvency practitioner" of the partnership (i.e. the liquidator), unless the court has made an appointment under section 140 of the Insolvency Act 1986 as applied by the IPO (see paragraphs 53.34 and 53.35) [Note 2].

Where he/she is the responsible insolvency practitioner, the official receiver must decide whether to hold a meeting under section 136A, as inserted by the IPO (see paragraph 53.38) [Note 3]. Such a meeting is to be held on a combined basis with the creditors of the partnership and of the insolvent member(s) being treated as a single set of creditors for the purposes of the meeting [Note 4]. Any insolvency practitioner appointed at that meeting will be the responsible insolvency practitioner for the partnership and the members against whom insolvency orders have been made [Note 5].

The guidance in this chapter as regards meetings in liquidations applies [Note 6].

16.152 No winding-up order against partnership but all partners bankrupt

On the making of the bankruptcy orders against all of the members of a partnership, under article 11 of the IPO, where there is no winding-up order against the partnership and there are no corporate members, the official receiver is appointed trustee of the estates including the partnership estate [Note 7]. However, once appointed, he/she is still under his customary duty to decide whether to hold a creditors’ meeting under section 293 of the Insolvency Act, as modified by the IPO. Any such meeting is to be held on a combined basis with the creditors of the members and the partnership being treated as a single set of creditors for the purposes of the meeting (see paragraph 53.49) [Note 8].

The guidance in this chapter as regards meetings in bankruptcies applies [Note 9].

16.153 Creditors’ committee

If the creditors wish to nominate a committee to act, the same committee will act in relation to each of the joint and separate estates. If one set of creditors believes that it is not properly represented on the committee, those creditors, or any one of them, may apply to the court for additional members of the committee to be appointed [Note 10] [Note 11].