Rule 1.29 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs)

Insolvency Rules as to the Completion or Termination (ending) of a Company Voluntary Arrangement

 

When a Company Voluntary Arrangement (CVA) is brought to an end the Supervisor of the arrangement must give notice of the ending of the CVA and a full report to various parties - including creditors, members and Companies House. It is insolvency Rule 1.29 that sets out the legal requirements as to sending out the notice of completion / termination and the circulation of the Supervisor's report

 

The "end" of a CVA might either be by "completion" or "termination".

 

The actual wording of Insolvency Rule 1.29 is shown below in bold.

 

Insolvency Rules 1986 - Rule 1.29 - Completion or Termination of the Arrangement

 

(1) Not more than 28 days after the final completion or termination of the voluntary arrangement, the supervisor shall send to creditors and members of the company who are bound by it a notice that the voluntary arrangement has been fully implemented or (as the case may be) has terminated.

(2) With the notice there shall be sent to each creditor and member a copy of a report by the supervisor summarising all receipts and payments made by him in pursuance of the arrangement, and explaining in relation to implementation of the arrangement any departure from the proposals as they originally took effect, or (in the case of termination of the arrangement) explaining the reasons why the arrangement has terminated.

(3) The supervisor shall, within the 28 days mentioned above, send to the registrar of companies and to the court a copy of the notice to creditors and members under paragraph (1), together with a copy of the report under paragraph (2), and the supervisor shall not vacate office until after such copies have been sent.

[(4) In the report under paragraph (2), the supervisor shall include a statement as to the amount paid, if any, to unsecured creditors by virtue of the application of section 176A (prescribed part). 

 

Under Insolvency Rule 1.29 the Supervisor of a CVA must promptly (28 days) give notice of the final completion or termination of a Company Voluntary Arrangement. Within that same time scale a full report must be sent by the CVA Supervisor to creditors, members, the Court & to Companies House.