Commentary on Sections Failure Section 24: Voluntary arrangements
101.This section gives the Independent Regulator powers to intervene in the operation of an NHS foundation trust in cases of financial difficulty.
102.Under this section, the Independent Regulator has powers to require an NHS foundation trust’s directors to make a proposal for a voluntary arrangement with its creditors. In addition, the Independent Regulator also has the power to require an NHS foundation trust’s directors to obtain a moratorium on its business prior to the approval of a voluntary arrangement.
103.Provisions to require the directors of a company to reach a voluntary arrangement with the company’s creditors, and also to obtain a moratorium over its business, are set out in detail in Part 1 of the Insolvency Act 1986. Subsection (2) gives the Secretary of State the powers to apply Part 1 of the Insolvency Act 1986, including related provisions of that Act, with modifications to NHS foundation trusts.