Rule 1.31 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs)
The EC Regulation on Insolvency - Application for conversion of a CVA into a Winding Up
In some circumstances a company that is not a UK registered company may enter into a UK Company Voluntary Arrangement (CVA) under the provisions of the EC Regulation on insolvency.
In such a case where a EC company is in a UK CVA (and therefore subject to the UK law set out in the Insolvency Act 1986 & The Insolvency Rules 1986) there must be a way of converting the Company Voluntary Arrangement to a winding up or other insolvency process. It is Insolvency Rule 1.31 that sets out the required legal procedure for applying for such a conversion of a CVA into a different insolvency process.
The actual wording of Insolvency Rule 1.31 is shown below in bold.
Chapter 7 - EC Regulation - Conversion of Voluntary Arrangement into Winding Up
Insolvency Rules 1986 - Rule 1.31 - Application for conversion into winding up
(1) Where a member State liquidator proposes to apply to the court for conversion of a voluntary arrangement into winding-up proceedings, a witness statement complying with Rule 1.32 must be prepared and filed in support of the application.
(1A) In this Rule, and in Rules 1.32 and 1.33, “conversion into winding-up proceedings” means an order under Article 37 of the EC Regulation (conversion of earlier proceedings) that the voluntary arrangement is converted into—
(a) administration proceedings whose purposes are limited to the winding up of the company through administration and are to exclude the purpose contained in paragraph 3(1)(a) of Schedule B1 to the Act;
(b) a creditors’ voluntary winding up; or
(c) a winding up by the court.
(2) An application under this Rule shall be by originating application.
(3) The application and the witness statement required under this Rule shall be served upon—
(a) the company; and
(b) the supervisor.
Insolvency Rule 1.31 provides the law on applying for the conversion of an EC Company Voluntary Arrangement (CVA) into a liquidation or administration.