Part 2: Further Education Bodies: Insolvency etc. Chapter 2: Application of Normal Insolvency to Statutory Corporations Section 6: Application of normal insolvency procedures
Section 6 provides for insolvent further education and sixth form college corporations to be treated in a similar way to insolvent companies under the Insolvency Act 1986. The section applies four specific insolvency procedures, which apply to companies, to further education and sixth form college corporations: voluntary arrangements, ordinary administration, creditors’ voluntary winding up, and winding up by the court.
	This section also provides a power for the Secretary of State to modify or omit provisions in the relevant insolvency legislation which is applied by this section, so that the insolvency legislation makes sense in the context of a further education and a sixth form college corporation, which has a different constitution to a company. The sort of modifications or omissions which may be made include those which are necessary to deal with the interaction between the insolvency procedures applied by the section and the special administration regime which is established by Chapter 4 of this Part. So, for instance, the power can be used to translate references to "company" to "further education body" and references to "directors" to "members" (governors). The power can also be used to omit provisions, such as those relating to floating charges, which cannot be granted by a further education or sixth form college corporation.
	The section also provides for the law relating to receivers and managers of property to be applied to those corporations and for that law to be able to be modified as it is applied to those corporations, because they are different from companies.