Part 5: Other provisions about safety standards, etc. Remediation of Certain defects Section 125 – Meeting remediation costs of insolvent landlords Effect
This section makes provision in connection with the insolvency process as it applies to landlords under leases of relevant buildings.
	Subsection (1) sets out the circumstances under which section 125 applies. Section 125 applies in relation to the winding up of a company which is also a landlord under a lease of a relevant building (to which see section 117) or any part of it, for example the freeholder or headlessee of the building. There are a number of different ways in which a company can be "wound up" including compulsory liquidation and company voluntary arrangements.
	Subsections (1)(a) and (1)(b) set out that section 125 applies if, in the winding up of the company that is a landlord under a lease of a relevant building, there are relevant defects (to which see section 120) relating to the building, and the company is under an obligation to remedy those defects or is liable to pay costs in relation to remedying the defects.
	Subsection (2) sets out that section 154 applies when the insolvency practitioner in relation to the winding up of the company makes an application to the court. "Insolvency practitioner" is defined in subsection (4) as having the same meaning as in section 388 of the Insolvency Act 1986. "The court" means the court with the jurisdiction to wind up the company.
	On the application of the insolvency practitioner, the court can make an order against a body corporate or partnership (which has the meaning given in section 121) associated with the company being wound up.
	The order made by the court can either require the associated company to make contributions to the assets of the company being wound up, or to make payments for the purpose of meeting the costs associated with remedying relevant defects. In both cases, the court must consider that it is just and equitable to make the order.