Rule 1.56 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs)

Legal procedure to Omit Information from Statement of Affairs which might otherwise be prejudicial or lead to violence

 

Insolvency Rule 1.56 has the effect of amending that Insolvency Rule 1.5, which specifies the required content of the Statement of Affairs attached to a Company Voluntary Arrangement proposal. Rule 1.56 permits a departure from the normal disclosure requirements in the statement of affairs should the Court, following an application, order that certain information should not be disclosed.

 

The actual wording of Insolvency Rule 1.56 is reproduced below in bold.

 

The Insolvency Rules 1986 - Rule 1.56 - Omission of information from a statement of affairs (in a CVA)

 

The court, on the application of the nominee, the directors or any person appearing to it to have an interest, may direct that specified information may be omitted from any statement of affairs required to be sent to the creditors where the disclosure of such information would be likely to prejudice the conduct of the voluntary arrangement or might reasonably be expected to lead to violence against any person.

 

Insolvency Rule 1.56 is designed to,

 

- Create a procedure to keep secret certain addresses or other information in a CVA statement of affairs which might otherwise be used by individuals who may wish to be violent, and

 

- Allow for a court ordered process which can permit less than full disclosure in a CVA statement of affairs should the information be prejudicial to the conduct of the CVA.