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Section 391O: Direct sanctions orders

Insolvency Act 1986 · 1986 c. 45View on legislation.gov.uk

Part XIII: Insolvency Practitioners and their Qualification

For the purposes of this Part a "direct sanctions order" is an order made by the court against a person who is acting as an insolvency practitioner which—

declares that the person is no longer authorised (whether fully or partially) to act as an insolvency practitioner;
declares that the person is no longer fully authorised to act as an insolvency practitioner but remains partially authorised to act as such either in relation to companies or individuals, as specified in the order;
declares that the person's authorisation to act as an insolvency practitioner is suspended for the period specified in the order or until such time as the requirements so specified are complied with;
requires the person to comply with such other requirements as may be specified in the order while acting as an insolvency practitioner;
requires the person to make such contribution as may be specified in the order to one or more creditors of a company, individual or insolvent partnership in relation to which the person is acting or has acted as an insolvency practitioner.

Where the court makes a direct sanctions order, the relevant recognised professional body must take all necessary steps to give effect to the order.

A direct sanctions order must not be made against a person whose authorisation to act as an insolvency practitioner was granted by the Department of Enterprise, Trade and Investment in Northern Ireland (see section 390A(2)(b)).

A direct sanctions order must not specify a contribution as mentioned in subsection (1)(e) which is more than the remuneration that the person has received or will receive in respect of acting as an insolvency practitioner in the case.

In this section and section 391P—

  • "the court" means the High Court or, in Scotland, the Court of Session;

  • "relevant recognised professional body", in relation to a person who is acting as an insolvency practitioner, means the recognised professional body by virtue of which the person is authorised so to act.

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.