Are there Different Rules for the Two Types of CVA?
Yes - there are different rules. The grant of a moratorium provides substantial privileges to the Directors of a company facing severe financial difficulties.
The new type of Company Voluntary Arrangement (CVA), which grants a moratorium period is subject to more procedural requirements than the older type CVA.
Examples of some of the different requirements for each type of CVA are set out later on this site under headings (for each type of CVA)
- Nominees duties
- Directors duties
- Disclosure issues
If your company needs the greater protection of a CVA providing a moratorium you as a Director will have greater personal responsibilities and there are material disclosure requirements to be met.
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