Rule 1.22 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs)
Resolutions to follow approval of a CVA as to - The individual duties of Joint Supervisors - And Replacement Supervisors
Insolvency Rule 1.22 is designed to ensure that any joint supervisors of an approved Company Voluntary Arrangement (CVA) are properly accountable. The Rule prescribes that a resolution must be passed by the creditors to allocate individual CVA duties between the joint supervisors.
The actual wording of Insolvency Rule 1.22 is reproduced below in bold.
Insolvency Rules 1986 - Chapter 5 - Rule 1.22 - Resolutions to follow approval
(1) If the voluntary arrangement is approved (with or without modifications) by the creditors' meeting, a resolution [must] be taken by the creditors, where two or more supervisors are appointed, on the question whether acts to be done in connection with the arrangement may be done by any one of them, or must be done by both or all.
(3) If at either meeting a resolution is moved for the appointment of some person other than the nominee to be supervisor of the arrangement, there must be produced to the chairman, at or before the meeting—
(a) that person's written consent to act (unless he is present and then and there signifies his consent), and
(b) his written confirmation that he is qualified to act as an insolvency practitioner in relation to the company [or is an authorised person in relation to the company]
There is now no sub-section (2) as that sub-section was revoked in 2002.
Under Insolvency Rule 1.22 Joint Supervisors must be allocated individual responsibility (by a creditors resolution) for the various duties that arise under a Company Voluntary Arrangement (CVA); accountability of individuals is thus ensured. Rule 1.22 also prescribes that any person who is proposed to act as Supervisor of the CVA (other than the person proposed in the CVA to act as Supervisor) must,
- Consent in writing, and
- Be a qualified insolvency practitioner.