Rule 1.47 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs) in the moratorium period

Challenges to a Nominee's actions - Applications to Court under paragraphs 26 or 27 of Schedule A1 to the Act

 

If any party wishes to challenge a Nominee's actions by making an application to court for the court to consider the challenge then the Nominee must, in accord with Insolvency Rule 1.47 be given five business day's notice of that fact. That five day period is to allow the Nominee sufficient time to put together his report to the Court on the matters subject to challenge - in order that the Court can consider both sides of the issue.

 

The actual wording of Insolvency Rule 1.47 is reproduced below in bold

 

The Insolvency Rules 1986 - Rule 1.47 - Applications to court under Paragraphs 26 or 27 of Schedule A1 to the (Insolvency) Act 1986

 

Where any person intends to make an application to the court pursuant to paragraph 26 or 27 of Schedule A1 to the Act, he shall give to the nominee at least [5 business] days' notice of his application. 

 

It is reasonable (and that is what Insolvency Rule 1.47 provides) that a nominee to a proposed CVA has the time opportunity to report his side of the story to the court if the nominee's actions are challenged in court by creditors, directors or members of the company concerned or anybody else who has been affected by the moratorium.