Rule 1.7 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs)
Nominee's report on the CVA proposal - To the Court & to the Company
Rule 1.7 of The Insolvency Rules 1986 sets out how the nominee must report his opinion on the CVA proposal and how his report is to be filed in court and copied to the company. The nominee either expresses the opinion that the CVA has a reasonable prospect of being implemented or otherwise.
The actual wording of Insolvency Rule 1.7 is shown below in bold.
Insolvency Rules 1986 - Rule 1.7 - Nominee's report on the proposal
(1) With his report to the court under section 2 the nominee shall deliver—
(a) a copy of the directors' proposal (with amendments, if any, authorised under Rule 1.3(3)); and
(b) a copy or summary of the company's statement of affairs.
(2) If the nominee makes known his opinion that [the directors' proposal has a reasonable prospect of being approved and implemented and] that meetings of the company and its creditors should be summoned under section 3, his report shall have annexed to it his comments on the proposal.
If his opinion is otherwise, he shall give his reasons for that opinion.
(3) The court shall cause the nominee's report to be endorsed with the date on which it is filed in court. Any director, member or creditor of the company is entitled, at all reasonable times on any business day, to inspect the file.
(4) The nominee shall send a copy of his report, and of his comments (if any), to the company
A nominee's report expressing his professional opinion on a CVA proposal is a serious document and has been subject to much case law. Insolvency Rule 1.7 sets out how the nominee must act in relation to his opinion and the handling, filing in court, and copying of the report to the company.