Section 6A of The Insolvency Act 1986 - Company Voluntary Arrangements (CVAs)

False representations and fraud at CVA meetings of shareholders and creditors






It should go without saying that Company Voluntary Arrangement proposal documentation should not be false in any material particular. Section 6A of The Insolvency Act 1986 makes it a criminal offence (punishable by imprisonment and a fine) should any CVA proposal be false or makes fraudulent omissions


The actual wording of Section 6A of The Insolvency Act 1986 is shown below in bold.


6A False Representations, etcetera


(1) If, for the purpose of obtaining the approval of the members or creditors of a company to a proposal for a voluntary arrangement, a person who is an officer of the company—

(a) makes any false representation, or

(b) fraudulently does, or omits to do, anything,

he commits an offence.

(2) Subsection (1) applies even if the proposal is not approved.

(3) For purposes of this section “officer” includes a shadow director.

(4) A person guilty of an offence under this section is liable to imprisonment or a fine, or both.



The moral of Section 6A of The Insolvency Act 1986 is that if you are a director or company secretary of a company puttting forward a company voluntary arrangement (cva) proposal to the creditors of your company then ensure that the document is,

- fair 

- complete

- true

- is not economic wth the truth