Rule 1.18 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs)
How are the Voting Rights of Members (Shareholders) at CVA Members' meetings determined?
The rights of an individual shareholder (member) of a company to vote at a Company Voluntary Arrangement (CVA) shareholders' meeting is prescribed by the company's rulebook - the Articles of Association.
The actual wording of Insolvency Rule 1.18 is shown below in bold.
Insolvency Rules 1986 - Chapter 5 - Rule 1.18 - Voting Rights (members)
(1) Subject as follows, members of the company at their meeting vote according to the rights attaching to their shares respectively in accordance with the articles.
(3) References in this Rule to a person's shares include any other interest which he may have as a member of the company.
There is no longer a sub-section 2 to this Section - as that sub-section was revoked by The Insolvency (Amendment) Rules 2002.
The rights of shareholders to vote at Company Voluntary Arrangement (CVA) shareholders' meetings might be considered to be uncertain when there are various classes of shares. Insolvency Rule 1.18 overcomes this difficulty by prescribing that the rights of shareholders to vote are to be determined by the company's rulebook - its Articles of Association.