March 2001
19.2 Insolvency proceedings
Insolvency court proceedings are to a large extent governed by a self standing code of practice set out in the Insolvency Rules 1986, particularly Part 7.
19.3 Definition of "court"
The word "court", when used in relation to a company, means the court having jurisdiction to wind up the company. The High Court has jurisdiction to wind up any company registered in England and Wales [note 1]. Where the amount of a company’s share capital paid up or credited as paid up does not exceed £120,000 (subject to increase or reduction to that sum by order made by the Secretary of State pursuant to section 416) then the county court of the district in which the company’s registered office is situated has concurrent jurisdiction with the High Court to wind up the company (subject to the power of the Lord Chancellor by order to exclude a county court from having winding-up jurisdiction) [note 2]. For the purpose of determining which county court has jurisdiction to wind up a company, that company's registered office is the place which has longest been its registered office during the 6 months immediately preceding the presentation of the winding-up petition [note 3]. Every county court in England and Wales having winding-up jurisdiction has, for the purposes of that jurisdiction, all the powers of the High Court [note 4].
Bankruptcy
The word "court", when used in relation to bankruptcy, means any court with jurisdiction under the Insolvency Act 1986, Second Group of Parts - Insolvency of Individuals; Bankruptcy [note 5]. The High Court and the county courts have jurisdiction for this purpose [note 6]. A county court for this purpose has all the powers of the High Court. Jurisdiction is exercised by the High Court in relation to insolvency proceedings which are allocated to the London insolvency district and by each county court in relation to proceedings which are allocated to the insolvency district of that court [note 7] (see paragraph 19.3). Bankruptcy proceedings may be transferred from one court to another [note 8], (see Chapter 7 - Transfer of Proceedings). Every bankruptcy is under the general control of the court and, subject to the provisions in the Second Group of Parts, the court has full power to decide all questions of priorities and all other questions, whether of law or fact, arising in any bankruptcy [note 9].
19.4 Insolvency Districts
The Lord Chancellor may by statutory instrument designate the area included in the London insolvency district. (The London insolvency district is discussed in Chapter 45- Proceedings up to order at paragraph 45.73.). With regard to county courts, the Lord Chancellor may at any time by statutory instrument order that there be a change to the county courts which exercise winding-up and bankruptcy jurisdiction [note 10].
19.5 Chancery division
The Companies Court and Bankruptcy Court are part of the Chancery Division. The Chancery Division is one of three parts of the High Court of Justice. The other two are the Queen's Bench Division and the Family Division. The effective head of the Chancery division is the Chancellor of the High Courts (formerly the Vice-Chancellor).
There are currently seventeen High Court Judges attached to the Chancery Division. In addition, in the Royal Courts of Justice in London, there are six Masters (one of whom is the Chief Master) and six bankruptcy Registrars (one of whom is the Chief Registrar). In the county court, the work performed by Registrars in Bankruptcy in London is performed by District Judges.
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