- Creditors are frozen by the Section 1A Company Voluntary Arrangement
- CVA - Responsibility of directors in a Section 1A CVA
- Section 1A Insolvency Act 1986 - Disclosure Requirements
- Creditors not included in the CVA proposal
- What does a Nominee of a Company Voluntary Arrangement have to do?
- CVA Creditors Meeting - Section 1A Insolvency Act 1986
- Voting Rights in a CVA under Section 1A Insolvency Act 1986
- Supervisors Duties in a Section 1A CVA
- A draft Company Voluntary Arrangement Proposal for you to look at
- Costs of preparing and operating under a Company Voluntary Arrangement
- Concluding the Company Voluntary Arrangement - The end is nigh!
- Banks and other secured creditors in a Company Voluntary Arrangement
- Landlords no longer protected from a Company Voluntary Arrangement
- Petitioning Creditors
- Company Voluntary Arrangements and Preferential Creditors - Definition
- Benefits to unsecured Creditors in the newer type of CVA
New Type Company Voluntary Arrangements - Enormous Responsibility
With power comes responsibility. Directors do not obtain the freeze on creditors actions arising from a SECTION 1A Insolvency Act 1986 Company Voluntary Arrangement proposal without having to exercise increased levels of responsibility in the period leading up to the day of the creditors meeting.. The objective of this insolvency law is to ensure that creditors are not abused in the moratorium or freezing period.
Directors may be fined, or for some of the following offences, imprisoned for defaults such as:
- not recording on every invoice, letterhead, order etc. the fact that a moratorium is in force..
- obtaining credit of more than £250 without informing the person from whom credit is taken that a moratorium is in force.
- disposing of company assets in circumstances which do not constitute the ordinary course of business of the company.
- paying certain pre moratorium creditors.
- without appropriate consent disposing of assets subject to hire purchase or other security.
It is not only the directors who have greater responsibility in the moratorium period - the nominee also has to have a greater involvement in "monitoring of the company's activities".
If you intend proposing a Section 1A type of Company Voluntary Arrangement proposal so as to release creditor pressure then please contact us for a FREE INITIAL MEETING. We can explain how to avoid all the insolvency pitfalls.