January 2008
Part 5 - Restrictions imposed on individuals subject to a BRO/IBRO or BRU by other legislation
Following the changes implemented by EA2002, the introduction of Bankruptcy Restrictions Orders (BROs), Interim Bankruptcy Restrictions Orders (IBROs) and Bankruptcy Restrictions Undertakings (BRUs) has affected the position of the restrictions applicable, in that some restrictions may still apply to undischarged bankrupts (see Part 2 for details of restrictions applicable in bankruptcy), whilst others may only apply to those individuals against whom a BRO/IBRO/BRU is in force.
For more information regarding the restrictions on bankrupts and those subject to a BRO/BRU, please see Enterprise Act 2002 (Disqualification from Office: General) Order 2004 and Enterprise Act 2002 (Disqualification from Office: General) Order 2006.
It should be noted that any list of restrictions cannot be guaranteed to be exhaustive, and the legislation affecting restrictions against individuals who are the subject of a BRO/IBRO/BRU may be subject to revision at any time. Discretionary disqualifications/restrictions imposed by other legislation (such as whether a person is deemed sufficiently “fit and proper” to be appointed) may be applied against an individual who is the subject of a BRO/IBRO or BRU, but it is not for the official receiver to determine whether such restrictions should apply.
25.82 Schedule of restrictions
(Amended October 2011)
The Annex details the main statutory consequences flowing from a BRO and was previously issued by Enforcement Section on 23 May 2007 under Enforcement Notice E13-07. The following paragraphs have been grouped under the same general headings as the Annex, and provide information on restrictions either not included in the schedule, or amendments which have occurred since the schedule was issued. The Annex must be read in conjunction with the information in this chapter.
Education
25.82A School Governance (Constitution) (England) Regulations 2003 (as amended by the Education (Disqualification Provisions: Bankruptcy and Mental Health) (England) Regulations SI 2006/2198
(September 2009)
A person is disqualified from holding or continuing to hold office as a governor of a school if he/she is the subject of a BRO(or BRU) or an IBRO. [Note 0].
Health and Medical
25.83 Appointments Commission Regulations 2006 (Public Health) (revoking and replacing the National Health Service Appointments Commission Regulations 2001)
The Appointments Commission Regulations 2006 disqualify an individual subject to a BRO/IBRO or BRU from being appointed as the chairman or as a non-executive member or commissioner, to the Appointments Commission (in connection with health and social care).[Note 1]
The National Health Service Appointments Commission Regulations 2001 (see Annex) were revoked and replaced by the Appointments Commission Regulations 2006, which came in to force 1 October 2006.
Housing
25.84 Housing Act 1996 - removal of director/trustee of a registered social landlord
An individual who is the subject of a BRO/IBRO/BRU is disqualified from being a director/trustee of a registered social landlord because he/she is automatically disqualified under section 72 of the Charities Act 1993 from being a charity trustee. Therefore the relevant authority (either a local housing authority or a social services authority) may remove a director/trustee of a registered social landlord which is a registered charity, where that director/trustee has been made the subject of a BRO/IBRO or BRU (see Annex). [Note 2]
Legal Matters
25.85 Mental Capacity Act 2005 – Lasting power of attorney
The making of a BRO/BRU against an individual making the power (donor) causes his/her lasting power of attorney to be revoked, relating to the property and affairs of the person concerned. Where the recipient (donee) of such a power becomes subject to a BRO/BRU, the appointment is terminated and (generally) the power revoked, other than in relation to the patient’s personal welfare. [Note 3]
Where either the donee or donor is the subject of an IBRO the lasting power of attorney is suspended so far as it relates to the donor’s property and affairs, so long as the order has effect. [Note 4]
[Back to Part 4] Restrictions imposed on individuals subject to BROs/IBROs and BRUs by insolvency legislation (including CDDA86)
[On to Annex] Effects of a bankruptcy restrictions order