Rule 1.45 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs) with a Moratorium

Replacement of the Nominee to a CVA by the Court

 

 

The directors of a company subject to the moratorium period in a Company Voluntary Arrangement (CVA) proposal  and/or the insolvency practitioner acting as the Nominee may apply to Court under Insolvency Rule 1.45 for the Nominee to be replaced by another insolvency practitioner.

 

The actual wording of Insolvency Rule 1.45 is reproduced below in bold.

 

The Insolvency Rules 1986 - Rule 1.45 - Replacement of the nominee by the court

 

(1) Where the directors intend to make an application to the court under paragraph 28 of Schedule A1 to the Act for the nominee to be replaced, they shall give to the nominee at least [5 business] days notice of their application.

(2) Where the nominee intends to make an application to the court under that paragraph to be replaced, he shall give to the directors at least [5 business] days' notice of his application.

(3) No appointment of a replacement nominee shall be made by the court unless there is filed in court a statement by the replacement nominee indicating that the replacement nominee—

(a) consents to act; and

(b) is qualified to act as an insolvency practitioner in relation to the company or is an authorised person in relation to the company. 

 

Insolvency Rule 1.45 lays down the legally required procedure for replacing a Nominee in relation to a proposed Company Voluntary Arrangement (CVA) where a moratorium is in existence.