Company Voluntary Arrangements (CVAs) - Index to Schedule A1 of The Insolvency Act 1986
Index to the 45 Paragraphs of Schedule A1 concerning CVAs with a moratorium
Schedule A1 to The Insolvency Act 1986 [concerning Company Voluntary Arrangements (CVAs) with a moratorium] became incorporated into that Act following a law change in 2000. It was necessary to then introduce Schedule A1 into The Insolvency Act as the government decided to introduce a second type of Company Voluntary Arrangement (CVA).
The perceived problem prior to 2000
The first type of Company Voluntary Arrangement that was introduced in 1986 suffered from a weakness in certain circumstances. Clearly any company that wishes to propose a CVA is in some financial difficulty which the CVA is designed to overcome. If the financial pressures are not extreme then a company may not need protection from creditors enforcement actions before the CVA creditors meetings is held. In other cases the pressures might be so extreme as to make the need of protection from creditors (called a moratorium or freeze) in the short period up to the date of the creditors meeting necessary or desirable.
Schedule A1 to The Insolvency Act 1986 was introduced to provide a new body of law tools so as to create a second type of company voluntary arrangement called a "CVA with a moratorium".
What does this mean for your company?
If you are considering putting forward a Company Voluntary Arrangement proposal on behalf of your company you need to consider the pros and cons of the two types of CVAs. You can find that information elsewhere on this website by clicking here. We can provide any information or advice you require free of charge personalised to the particular circumstances of your company.
The purpose of providing an index to Schedule A1 of The Insolvency Act 1986 on this page is to enable you to read up on any particular aspects of CVA with a moratorium law once you have an overview understanding.
The index to the 45 Paragraphs (as they are called) of Schedule A1 to The Insolvency ACt 1986 is shown below in bold. Please click on any of the following Paragraph numbers in which you are interested to take you to a separate webpage dealing with just that particular CVA with a moratorium law.
SCHEDULE A1 - MORATORIUM WHERE DIRECTORS PROPOSE COMPANY VOLUNTARY ARRANGEMENT
PART 1 - INTRODUCTORY (These introductory Paragraphs 1 - 5 mainly concern the definition of those companies that are and those companoes that are not eligible to aply for a CVA with a moratorium)
1 Interpretation (of the terminology used in Schedule A1)
2 Eligible companies (ie those companies that can apply for a CVA with a moratorium)
4 Exclusions from eligibility (general)
4A Exclusion from eligibility (of capital market arrangements)
4B Exclusion from eligibility (of Public private partnerships)
4C Exclusion from eligibility (should £10M or more be owed "under an agreement")
4G Further definition of the £10M "Debt" (in Paragaph 4C as regards Capital Market Arrangements)
4H Interpretation of the words "project company" (in Paragraph 4B)
4I Interpretation of the words "public private partnership project" (in Paragraph 4B)
4J Interpretation of the words "step-in rights" (as used in Paragraph 4B)
4K Interpretation of the word "Person" (for the purposes of Paragraphs 4A to 4J)
5 Future modifications to these Paragraphs (ie the power of the Secretary of State to modify the Paragraphs above as regards what type of company is eligible and what range of qualifying conditions must apply if a particular company wishes to apply for a CVA with a moratorium)
Part 2 - OBTAINING A MORATORIUM
PART 3 - EFFECTS OF THE MORATORIUM
22 More law on disposal of charged property (with penalties for bad behaviour)
PART 4 - NOMINEES
24 Monitoring of company's activities (by the nominee in the CVA moratorium period)
PART 5 - CONSIDERATION AND IMPLEMENTATION OF THE CVA (with a moratorium)
Summoning of meetings
36 Effectiveness of decisions (made at the two meetings)
PART 6 - MISCELLANEOUS
This index to Company Voluntary Arrangement (with a moratorium) insolvency law as set out in Schedule A1 to TheInsolvency Act 1986
is written in the technical language o the Act. For free advice in plain Engish on CVAs or on any other insolvency topic please contact us.