Rule 1.17A of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs)

Chairman's required Procedure for Admission or Rejection of Creditors Claims for Voting Purposes at a CVA meeting


It is for the chairman of a CVA meeting of creditors to decide whether to allow an individual creditor to vote at all or in a set sum. The Chairman is given power by Insolvency Rule 1.17A to reject or admit individual creditors claims at Company Voluntary Arrangement (CVA) creditors' meetings. The Court, upon application by a creditor, can later agree to or vary the decision by the chairman of the meeting - provided the application to court is made within the specified time period set by Rule 1.17A.


The actual wording of Insolvency Rule 1.17A is shown below in bold.


Insolvency Rules 1986 - Chapter 5 - Rule 1.17A - Procedure for admission of creditor's claims for voting purposes


(1) Subject as follows at any creditors' meeting the chairman shall ascertain the entitlement of persons wishing to vote and shall admit or reject their claims accordingly.

(2) The chairman may admit or reject a claim in whole or part.

(3) The chairman's decision on any matter under this rule or under paragraph (3) of Rule 1.17 is subject to appeal to the court by any creditor or member of the company.

(4) If the chairman is in doubt whether a claim should be admitted or rejected , he shall mark it as objected to and allow votes to be cast in respect of it, subject to such votes being subsequently declared invalid if the objection to the claim is sustained.

(5) If on an appeal the chairman's decision is reversed or varied, or votes are declared invalid, the court may order another meeting to be summoned, or make such order as it thinks just. The courts power to make order under this paragraph is exercisable only if it considers that the circumstances giving rise to the appeal to unfair predjudice or material irregularity. 

(6) An application to the court by way of appeal against the chairman's decision shall not be made after the period of 28 days beginning  with the first day on which the report required by section 4 (6) has been made to the court. 

(7) The chairman is not personally liable for any costs incurred by any person in respect of an appeal under this Rule. 


Rule 1.17A provides the power to the insolvency practitioner acting as Nominee and chairman of the CVA Creditors meeting to properly manage that meeting. The Rule provides the chairman with the power to admit or reject a creditor's claim in whole or in part for voting purposes. The Chairman's decision is however subject to an appeal to the court.