Rule 1.14 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs)

Who must be the Chairman at CVA Meetings of creditors & shareholders?

 

 

At Company Voluntary Arrangement (CVA) meetings of shareholders there must be a Chairman. The question is, "who are the only persons who can act as Chairman at such meetings?". Insolvency Rule 1.13 specifies that the Chairman should be the insolvency practitioner who is acting as Nominee in the CVA proposal. Should the nominee be unavailable to chair the meeting(s) Rule 1.14 provides alternatives as who might act as Chairperson.

 

 

The actual wording of Insolvency Rule 1.13 is shown below in bold.

 

Chapter 5 - Insolvency Rules 1986 - Rule 1.14 - The Chairman at CVA meetings of shareholders & creditors

 

(1) Subject as follows, at both the creditors' meeting and the company meeting, and at any combined meeting, the [nominee must] be chairman.

(2) If for any reason he is unable to attend, he may nominate another person to act as chairman in his place; but a person so nominated must be...—

(a) a person qualified to act as an insolvency practitioner in relation to the company, or

(b) an authorised person in relation to the company; or

(c) an employee of the [nominee] or his firm who is experienced in insolvency matters

 

 

At Company Voluntary Arrangement (CVA) meetings the Nominee must act as Chairman of the meetings. If the nominee should be  unavailable  the Nominee must nominate another person (in accord with Insolvency Rule 1.14) to act as the chairman.