The Financial Markets and Insolvency Regulations 1991
The regulations make various amendments and modifications to the provisions of Part VII of the Companies Act 1989 (“the Act”) which concerns the effects of insolvency law, and the enforcement of certain rights and remedies, on the operation of certain financial markets. One effect of Part VII of the Act is to modify the way in which insolvency law applies in relation to certain contracts defined as “market contracts”. Regulation 3 of the regulations amends the definition of “market contracts” for the purposes of Part VII. Regulations 4 and 5 make provision concerning the exercise of voting rights at meetings of creditors and the ranking, in insolvency, of expenses incurred by insolvency officeholders in providing assistance under the Part. Regulation 6 restricts the circumstances in which an overseas investment exchange or clearing house recognised under the Financial Services Act 1986 (c. 60) is obliged to make a report under section 162 of the Act.