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A "nominee" is the person named
in the proposal who is intended to ultimately supervise the
implementation of the proposal.
The "nominee" has to be a licenced
insolvency practitioner (in an old type CVA)
The "nominee" becomes the "supervisor"
when the creditors approve the CVA proposal.
The nominee's duties in an old type CVA
are not as great as his duties in a new CVA.
In an old type CVA those duties include:
- reporting to the court as to
whether or not the nominee believes a creditors meeting
ought to be called. In other words the nominee has to report
whether or not, in his opnion, the proposed CVA has a good
chance of sucess and also may be acceptable to the creditors.
- after reporting to the court
the nominee has to:
- send out the notifications
of the meetings to the shareholders and creditors.
- attend at the meeting
and act as chairman of the meeting.
- report the result of the
meeting to the court, creditors etc.
Generally speaking, the nominee, in an
old type CVA does not have the responsibility of monitoring
the progress of the company in the period up to the day of
the creditor's meeting. The Nominees' role is, therefore,
"hands off" and the directors continue in full power
up to the day of the creditors meeting.
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