Rule 1.48 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs) where a moratorium was obtained
Summoning of CVA creditors' and members' Meetings; The legal Procedure at those Meetings
To consider a Company Voluntary Arrangement proposal (where a moratorium has been obtained) there must be separate meetings of the members (shareholders) and creditors of the company concerned. Insolvency Rule 1.48 sets out the legal requirements as to the advance notice period of the meetings that must be given and the information that must be sent out when the meeting are summoned. As the meetings being summoned (called) are to consider whether or not to approve a Company Voluntary Arrangement (CVA) proposal Insolvency Rule 1.48 also prescribes that a lot of information must be sent out in order that the creditors and members have the necessary information to form a view on whether to approve the proposed CVA .
The actual wording of Insolvency Rule 1.48 is reproduced below in bold.
The Insolvency Rules 1986 - Rule 1.48 - Summoning of meetings; procedure at meetings etcetera
(1) Where the nominee summons meetings of creditors and the company pursuant to paragraph 29(1) of Schedule A1 to the Act, each of those meetings shall be summoned for a date that is not more than 28 days from the date on which the moratorium came into force.
(2) Notices calling the creditors' meetings shall be sent by the nominee to all creditors specified in the statement of affairs and any other creditors of the company of whose address he is aware at least 14 days before the day fixed for the meeting.
(3) Notices calling the company meeting shall be sent by the nominee to all persons who are, to the best of the nominee's belief, members of the company at least 14 days before the day fixed for the meeting.
(4) Each notice sent under this Rule must—
(i) the court in which the documents relating to the obtaining of the moratorium were filed and
(ii) the court reference; and
(b) state the effect of paragraphs (2) to (4) of Rule 1.52 (requisite majorities (creditors)).
(4A) With each notice there must be sent—
(a) a copy of the directors’ proposal;
(b) a copy of the statement of affairs or, if the nominee thinks fit, a summary of it (the summary to include a list of creditors and the amount of their debts); and
(c) the nominee’s comments on the proposal.
The nominee to a Company Voluntary Arrangement (CVA) has to call meetings of members and creditors to consider the CVA proposal. When calling (summoning) those CVA meetings the nominee has to send out comprehensive information (as prescribed by Insolvency Rule 1.48) and must meet set deadlines.