Section 159: Proceedings of recognised bodies take precedence over insolvency procedures., Companies Act 1989

None of the following shall be regarded as to any extent invalid at law on the ground of inconsistency with the law relating to the distribution of the assets of a person on bankruptcy, winding up or sequestration, or in the administration of a company or other body or in the administration of an insolvent estate—

a market contract,

the default rules of a recognised body,

the rules of a recognised body other than a recognised central counterparty as to the settlement of market contracts not dealt with under its default rules,

the rules of a recognised central counterparty on which the recognised central counterparty relies to give effect to the transfer of a clearing member client contract, or the settlement of a clearing member client contract or clearing member house contract, in accordance with its default rules,

a transfer of a clearing member client contract, or the settlement of a clearing member client contract or a clearing member house contract, in accordance with the default rules of a recognised central counterparty,

where a clearing member client contract transferred in accordance with the default rules of a recognised central counterparty was entered into by the clearing member or client as principal, a transfer of a client trade or group of client trades corresponding to that clearing member client contract,

a transfer of a qualifying collateral arrangement in conjunction with the transfer of clearing member client contract as mentioned in paragraph (e) or of a client trade as mentioned in paragraph (f), or

a qualifying property transfer.

The powers of a relevant office-holder in his capacity as such, and the powers of the court under the Insolvency Act 1986, the Bankruptcy (Scotland) Act 2016, Part 10 of the Building Societies Act 1986, Parts 2 and 3 of the Banking Act 2009 or under regulations made under section 233 of that Act, shall not be exercised in such a way as to prevent or interfere with—

the settlement in accordance with the rules of a recognised body other than a recognised central counterparty of a market contract not dealt with under its default rules, ...

any action taken under the default rules of a recognised body other than a recognised central counterparty,

the transfer of a clearing member client contract, or the settlement of a clearing member client contract or a clearing member house contract, in accordance with the default rules of a recognised central counterparty,

where a clearing member client contract transferred in accordance with the default rules of a recognised central counterparty was entered into by the clearing member or client as principal, the transfer of a client trade or group of client trades corresponding to that clearing member contract,

the transfer of a qualifying collateral arrangement in conjunction with a transfer of a clearing member client contract as mentioned in paragraph (c), or a transfer of a client trade as mentioned in paragraph (d),

any action taken to give effect to any of the matters mentioned in paragraphs (c) to (e), or

any action taken to give effect to a qualifying property transfer.

This does not prevent a relevant office-holder from afterwards seeking to recover any amount under section 163(4) or 164(4) or prevent the court from afterwards making any such order or decree as is mentioned in section 165(1) or (2) (but subject to subsections (3) and (4) of that section).

Nothing in the following provisions of this Part shall be construed as affecting the generality of the above provisions.

However, prior to the completion of default proceedings—

where it appears to the convener that a sum will be certified under section 162(1) to be payable, subsection (4) shall not prevent any proof or claim including or consisting of an estimate of that sum which has been lodged or, in Scotland, submitted, from being admitted or, in Scotland, accepted, for the purpose only of determining the entitlement of a creditor to vote in a decision procedure; and

a creditor whose claim or proof has been lodged and admitted or, in Scotland, submitted and accepted, for the purpose of determining the entitlement of a creditor to vote in a decision procedure and which has not been subsequently wholly withdrawn, disallowed or rejected, is eligible as a creditor to be a member of a liquidation committee or, in bankruptcy proceedings in England and Wales, or in the administration of a company or other body a creditors' committee.

For the purposes of subsections (4) and (4A) the default proceedings shall be taken to be completed in relation to a person when a report is made under section 162 stating the sum (if any) certified to be due to or from him.

Section 159: Proceedings of recognised bodies take precedence over insolvency procedures.

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