The Process For A Business Entering Into A Company Voluntary Arrangement or CVA
Definition of a CVA
A company voluntary arrangement is when a company proposes an agreement with its creditors. This arrangement must be approved by the court, in which the company has formally agreed terms with its creditors for the settlement of its debts.
Considering The Proposal
Where the nominee is not the administrator or liquidator they must deliver notice of consent to the proposer as soon as possible after receiving the proposal. Within 28 days of receipt the nominee must submit a report to the court.
Once the CVA is approved
If the members and creditors approve the arrangement, the nominee or his replacement becomes the supervisor of the arrangement.
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This information was taken from the Government's website which provides businesses advice regarding Liquidation and Insolvency.
To find out more, please visit Liquidation and Insolvency
Proposing a CVA
A company voluntary arrangement may be proposed by the:
Administrator where the company is in administration
Liquidator where the company is being wound up
Directors, in other circumstances
Approving A Proposal For A CVA
The nominee must invite members of the company to consider a proposal by summoning a meeting and inviting creditors to consider the proposal by a decision procedure.
What Is Required
The supervisor must send a copy of the convener’s or chair’s report to the registrar.
The supervisor must send reports on the progress and prospects for the full implementation of the voluntary arrangement, to all interested parties including the registrar, every 12 months starting with the date the CVA was approved.
Creditors Voluntary Liquidation
If you feel that your business is no longer viable and cannot continue to trade, we work with industry leading specialists to provide a simple, hassle free process to legally dissolve your business. To find out more, please take a look at our Creditors Voluntary Liquidation or CVL Service.