Rule 1.21 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs)

CVA meetings - Can the Shareholders & Creditors meetings be at the same time? - Adjournment Rules

 

 

Under Insolvency Rule 1.21 it is permitted to hold shareholders' and creditors' meetings at the same time. Should the meetings be held at the same time when votes are cast they are counted as if separate meetings are taking place. In other words only shareholders can vote at the "shareholders" meeting & only creditors can vote at the "creditors'" meeting.

 

It is also Rule 1.21 that sets out the detailed rules as to any adjournment of creditors' and shareholders' meetings

 

The actual wording of Rule 1.21 is reproduced below in bold..

 

 

Insolvency Rules 1986 - Chapter 5 - Rule 1.21 - CVA Meetings - Joint meetings and Adjournments

 

(1) If the chairman thinks fit the creditors' meeting and the company meeting may be held together.

(2) The chairman may and if it is so resolved at the meeting in question, adjourn that meeting for not more that 14 days. 

(3) If there are subsequently further adjournments, the final adjournment shall not be to a day later than 14 days after the date on which the meeting in question was originally held.

(4) In the case of a proposal by directors, if the meetings are adjourned under paragraph (2), notice of the fact shall be given by the nominee [as soon as reasonably practicable] to the court.

[(4A) Once only in the course of a meeting the chairman may, without an adjournment, declare it suspended for any period up to 1 hour.]

(5) If following any final adjournment of the meetings the proposal (with or without modifications) is not agreed by creditors, it is deemed rejected.

 

 

Insolvency Rule 1.21 provides the Chairman (of the shareholders' and creditors' meetings) with the necessary statutory guidance as to how adjournments can be arranged and the timescale that is set for reconvened meetings.