Company Voluntary Arrangements (CVAs) - Law - CVA with a moratorium

Sch A1 - Insol Act - Para 34 - Nominee's duty to report to Court & Registrar of the extension of the CVA moratorium

 

 

Clearly the Registrar of Companies (and the Court) must be kept up to date with the fact that a CVA moratorium period has been extended. The duty to report the CVA moratorium extension is placed on the Nominee by Paragraph 34 of Schedule A1.

 

 

The actual wording of Paragraph 34 of Schedule A1 to The Insolvency Act 1986 is reproduced below in bold.

 

 

Paragraph 34 - Schedule A1 - Insolvency Act 1986 - When a CVA moratorium period has been extended the Nominee has a duty to report that fact to the Court and to the Registrar of Companies

 

(1) If a decision to extend, or further extend, the moratorium takes effect under paragraph 36, the nominee shall, in accordance with the rules, notify the registrar of companies and the court.

(2) If the moratorium is extended, or further extended, by virtue of an order under paragraph 36(5), the nominee shall, in accordance with the rules, send [a copy] of the order to the registrar of companies.

(3) If the nominee without reasonable excuse fails to comply with this paragraph, he is liable to a fine.

 

 

This Paragraph 34 of Schedule A1 to The Insolvency Act 1986 places the responsibility of reporting to the Court (and to the Registrar of Companies) of the extension of a moratorium period in a proposed CVA on the insolvency practitioner Nominee - not on the directors of the company.