Rule 1.33 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs)

The EC Regulation on Insolvency - Conversion from an EC CVA to winding up - Power of Court

 

When a Court makes an Order following consideration of an Application for the conversion of a EC Company Voluntary Arrangement into a subsequent insolvency process the Court has the powers granted to it by virtue of Insolvency Rule 1.33. Rule 1.33 provides the Court to have the wide ranging power to make any order "as it thinks just".

 

The actual wording of Insolvency Rule 1.33 is shown below in bold.

 

Chapter 7 - EC Regulation - Conversion of Voluntary Arrangement into Winding Up

Insolvency Rules 1986 - Rule 1.33 - Power of Court (On hearing the application for conversion of a CVA into a subsequent insolvency process)

 

(1) On hearing the application for conversion into [winding-up proceedings] the court may make such order as it thinks [just].

(2) If the court makes an order for conversion into [winding-up proceedings] the order may contain all such consequential provisions as the court deems necessary or desirable.

(3) Without prejudice to the generality of paragraph (1), an order under that paragraph may provide that the company be wound up as if a resolution for voluntary winding up under section 84 were passed on the day on which the order is made.

(4) Where the court makes an order for conversion into winding-up proceedings under paragraph (1), any expenses properly incurred as expenses of the administration of the voluntary arrangement in question shall be a first charge on the company's assets. 

 

Insolvency Rule 1.33 provides the Court with total power to make any order it thinks proper when considering any application for the conversion of an EC CVA to a winding up.