Rule 1.22A of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs) - Appeal by Shareholders
Notice of a Court Order made under Section 4A (6) - Being a Court Order following an appeal by Shareholders
If the shareholders' meeting reaches a different conclusion to the CVA creditors' meeting as to whether or not a Company Voluntary Arrangement proposal is approved what might happen? In these circumstances the shareholders can apply to Court (under Section 4A (6) of The Insolvency Act 1986) for the court to review the matter. The Court can then make such order as it thinks fit.
Insolvency Rule 1.22A provides the law as to,
- the time limit for any appeal by the shareholders to the court to be made, and
- the range of decisions that the court might order.
The actual wording of Insolvency Rule 1.22A is reproduced below in bold.
Insolvency Rules 1986 - Chapter 5 - Rule 1.22A - Notice of Order made under Section 4A (6)
(1) This Rule applies where the court makes an order under section 4A (6)
(2) The member of the company who applied for the order shall serve sealed copies of it on ---
(a) the supervisor of the voluntary arrangement; and
(b) the directors of the company.
(3) Service on the directors may be affected by service of a single copy on the company as its registered office.
(4) Service on the directors or (as the case may be) the supervisor shall [as soon as reasonably practicable] after receiving a copy of the court's order, give notice of it to all persons who were sent notice of the creditors' or company meetings or who, not having been sent such notice, are affected by the order.
(5) The person on whose application the order of the court was made shall, within [5 business] days of the order, deliver [a copy] to the registrar of companies.]
Insolvency Rule 1.22A provides the rule as to how different decisions as to the approval or otherwise of a CVA by shareholders' and creditors' meetings might be adjudicated by the court.