Rule 1.13 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs)

Rules for Summoning (Calling)) Of Meetings of Creditors & Shareholders in a CVA - Venue, timing & convenience

 

 

Rule 1.13 of The Insolvency Rules 1986 is concerned with the convenience of shareholders and creditors as regards the consideration of a Company Voluntary Arrangement (CVA) proposal as regards the meeting arrangements & specifies that,

 

- The venue & location for the meetings of shareholders and creditors be convenient for them

- The time of day at which the meetings of shareholders & creditors are held be convenient for them

- The enclosure of a proxy form (so that shareholders and creditors can more easily arrange for a proxy person to attend at the meeting(s) in his or her place be attached to the paperwork calling the meetings.

 

 

Chapter 5 - Insolvency Rules 1986 - Rule 1.13 - Summoning of Meetings ((Where the CVA proposal has been made by either of: the directors, the administrator or; the liquidator)

[(1) Subject as follows, in fixing the venue for the creditors' meeting and the company meeting, [the nominee must] have regard primarily to the convenience of the creditors.

(2) Meetings shall in each case be summoned for commencement between 10.00 and 16.00 hours on a business day.

(3) The meetings shall be held on the same day or on different days. If held on the same day, the meetings shall be held in the same place, but in either case the creditors' meeting shall be fixed for a time in advance of the company meeting. 

4) Where the  meetings are not held on the same day, they shall be held within [5 business] days of each other. 

5) With every notice summoning either meeting there shall be sent out forms of proxy]

 

 

Rule 1.13 of The Insolvency Rules 1986 is designed to prevent an abuse such as calling meetings of shareholders & creditors in a CVA to take place, say, in John O'Groats at 4:30 pm on Christmas Eve. By Rule 1.13 specifying a requirement that the venue and the time set for the start of the Company Voluntary Arrangement  meetings must  be convenient for the shareholders and creditors such an abuse is avoided.