Rule 1.8 of The Insolvency Rules 1986 - Company Voluntary Arrangements (CVAs)
Replacement of Nominee - Notice & Court requirements
Insolvency Rule 1.8 explains how a replacement nominee is appointed and the notice that has to be given. It reconfirms that the replacement nominee must be a licensed insolvency practitioner.
The actual wording of Rule 1.8 of The Insolvency Rules 1986 is recorded below in bold.
Insolvency Rules 1986 - Rule 1.8 - Replacement of nominee
(1) Where any person intends to apply to the court under section 2(4) for the nominee to be replaced, (except in any case where the nominee has died) he shall give to the nominee at least [5 business] days' notice of his application.
(2) Where the Nominee intends to apply to the Court under section 2(4) of the Act to be replaced, he shall give at least [5 business] days' notice of his application to the person intending to make the proposal.
(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 -
(a) Indicating his consent to act, and
(b) that he is qualified to Act as an Insolvency Practitioner in relation to the company or is an authorised person in relation to the company.
The Insolvency Rules 1986 try to envision all possibilities. Rule 1.8 envisages a circumstance where it may be necessary to replace, for whatever reason, the nominee who was originally appointed. Rule 1.8 explains how the replacement process works and what must be done.