Rule 1.27 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs)

Production of Supervisor's CVA accounts and records to the Secretary of State for audit

 

The activities of a Supervisor of a CVA is monitored by both his insolvency licencing body and the Secretary of State can also require the Supervisor to hand over his records for audit. It is Insolvency Rule 1.27 that provides the Secretary of State with the necessary legal power to require the Supervisor of any Company Voluntary Arrangement to deliver up his records for that inspection and audit.

 

The actual wording of Insolvency Rule 1.27 is shown below in bold.

 

Insolvency Rules 1986 - Rule 1.27 - Production of accounts and records to Secretary of State

 

(1) The Secretary of State may at any time during the course of the voluntary arrangement or after its completion [ or termination] require the supervisor to produce for inspection—  

(a) his records and accounts in respect of the arrangement, and

(b) copies of abstracts and reports prepared in compliance with Rule 1.26A.

(2) The Secretary of State may require production either at the premises of the supervisor or elsewhere; and it is the duty of the supervisor to comply with any requirement imposed on him under this Rule.

(3) The Secretary of State may cause any accounts and records produced to him under this Rule to be audited; and the supervisor shall give to the Secretary of State such further information and assistance as he needs for the purposes of his audit. 

 

Because a Supervisor of a Company Voluntary Arrangement (CVA) handles other people's money that Supervisor is closely monitored by his insolvency licensing body. Insolvency Rule 1.27 adds an extra layer of possible monitoring by the Secretary of State who can require the CVA Supervisor to deliver up all of his records for audit.