Rule 1.24 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs)

Content of and the Reporting of the result of CVA Meetings of Shareholders & Creditors

 

 

The chairman of the Company Voluntary Arrangement (CVA) shareholders' and creditors' meetings must prepare a report. The content of that report is prescribed  by Insolvency Rule 1.24. The same rule also sets out the law as to who must be circulated with that report & rules relating to the filing of the report into Court.

 

The actual wording of Insolvency Rule 1.24 is reproduced below in bold.

 

Insolvency Rules 1986 - Chapter 5 - Rule 1.24 - Report of CVA meetings

 

(1) A report of the meetings shall be prepared by the person who was chairman of them.

(2) The report shall—

[(a) state whether the proposal for a voluntary arrangement was approved by the creditors of the company  alone or by both the creditors and members of the company and in either case whether such approval was with any modifications;] 

(b) set out the resolutions which were taken at each meeting, and the decision on each one;

(c) list the creditors and members of the company (with their respective values) who were present or represented at the meetings, and how they voted on each resolution;...

[(ca) state whether, in the opinion of the supervisor, (i) the EC Regulation applies to the voluntary arrangement and (ii) if so, whether the proceedings are main proceedings,secondary proceedings or territorial proceedings; and]

(d) include such further information (if any) as the chairman thinks it appropriate to make known to the court.

(3) A copy of the chairman's report shall, within 4 [business] days of the meetings being held, be filed in court; and the court shall cause that copy to be endorsed with the date of filing.

(4) In respect of each of the meetings, the persons to whom notice of its result is to be sent by the chairman under section 4(6) are all those who were sent notice of the meeting under this Part of the Rules.

The notice shall be sent immediately after a copy of the chairman's report is filed in court under paragraph (3).

(5)[If the decision approving the voluntary arrangement has effect under section 4A] 9whether or not in the form proposed), the supervisor shall [as soon as reasonably practicable] send a copy of the chairman's report to the registrar or companies.

 

 

Once CVA shareholders' and creditors' meetings have been concluded the chairman of the meetings must prepare a report that has prescribed content. As well as addressing the question of the required content of the report Insolvency Rule 1.24 specifies to whom the report must be sent.