Rule 1.1 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs) - Index

Index to the Insolvency Rules 1986 as they apply to Company Voluntary Arrangements




To become more expert in interpreting the Insolvency Rules 1986 as they apply to CVAs it is important to first examine this Insolvency Rules 1986 index to establish which Rules apply - The Rules are different if the Company Voluntary Arrangement was proposed by the directors as opposed to a CVA proposed by a liquidator or administrator. The actual wording of Rule 1.1 of The Insolvency Rules 1986 is shown below in bold.


Part 1 - Chapter 1 - Preliminary - Rule 1.1  Scope of this Part; interpretation


(1) The Rules in this Part apply where, pursuant to Part I of the Act, it is intended to make, and there is made, a proposal to a company and its creditors for a voluntary arrangement, that is to say, a composition in satisfaction of its debts or a scheme of arrangement of its affairs.


(2) In this Part—

(a) Chapter 2 applies, where the proposal for a voluntary arrangement is made by the directors of the company, and neither is the company in liquidation, nor is an administration order (under Part II of the Act) in force in relation to it;


(b) Chapter 3 applies where the company is in liquidation or an administration order is in force, and the proposal is made by the liquidator or (as the case may be) the administrator, he in either case being the nominee for the purposes of the proposal;


(c) Chapter 4 applies in the same case as Chapter 3, but where the nominee is an insolvency practitioner other than the liquidator or the administrator; and


(d) Chapters 5 and 6 apply in all the three cases mentioned in sub-paragraphs (a) to (c) above.


(3)  In Chapters 3, 4 and 5, the liquidator or the administrator is referred to as “the responsible insolvency practitioner”.


So the starting point before considering any insolvency rule is whether or not you have selected the correct Rule by identifying who proposed the CVA in the first instance. The Chapters  referred to above are,

- Chapter 2 - Proposal made by Directors (Rules 1.2 to 1.9)

- Chapter 3 - Proposal made by administrator or liquidator [himself the nominee] (Rules 1.10 to 1.11)

- Chapter 4 - Proposal made by administrator or liquidator (but with another insolvency practitioner as the nominee)

- Chapter 5 - Proceedings on a proposal made by directors, liquidator or administrator


There are however 11 "Chapters" in the Insolvency Rules 1986 applying to Company Voluntary Arrangements and these Chapters incorporate Rules 1.1 to Rule 1.56 - With 56 CVA Rules you can appreciate why the index is so important.


As Chapters 6 - 11 apply to CVAs but are not referred to in Rule 1.1 it is useful to summarise below what further CVA Insolvency Rules those Chapters cover,

- Chapter 6 - General - concerns "False representations" (Rule 1.30)

- Chapter 7 - EC Regulation (Rules 1.31 to 1.33)

- Chapter 8 - Moratorium issues (Rules 1.35 to 1.54)

- Chapter 9 - Time recording information (Rule1.55)

- Chapter 11 - Omission of information from statement of affairs (Rule 1.56)


This index to the Company Voluntary Arrangement Insolvency Rules i therefore a starting point for identifying the applicable set of Rules. The individual 56 CVA Insolvency Rules are available via the index shown on the left hand side of this page.