7.3 Role of IP in CVA Flashcards
Is the remuneration of the advisor payable in a CVA?
No.
How long does the nominee have to deliver their consent to act to the proposer?
As soon as reasonably practical.
When does the 28 period in which the nominee must submit their report to court commence? (if not already administrator or liq)
On the date the nominee receives the proposal.
What must be included in the report to court on the proposals?
a) whether, in his opinion, the proposed voluntary arrangement has a reasonable prospect of being approved and implemented,
b) whether, in his opinion, the proposal should be considered by a meeting of the company and by the company’s creditors, and
c) if in his opinion it should, the date on which, and time and place at which, he proposes a meeting of the company should be held.
a) WHY the nominee considers the proposal does or does not have a reasonable prospect of being approved and implemented; and
b) WHY the members and the creditors should or should not be invited to consider the proposal.
What else must nominee have procedures in place to do?
a) The nominee able to report on whether or not in nominee’s judgement:
i. Company’s financial position is materially different from that contained in proposal, explaining extent to which the information has been verified
ii. CVA manifestly unfair
iii. CVA has a reasonable prospect of being approved and implemented
What is the test for a CVA?
Whether it meets the “Fit, Fair and Feasible” test per Greystoke v Hamilton-Smith 1995
What further information may a nominee require?
If it appears to the nominee that the nominee’s report to the court cannot properly be prepared on the basis of information in the proposal and statement of affairs, the nominee may require the proposer to provide—
a) more information about the circumstances in which, and the reasons why, a CVA is being proposed;
b) particulars of any previous proposals which have been made in relation to the company under Part 1 of the Act; and
c) any further information relating to the company’s affairs which the nominee thinks necessary for the purposes of the report.
Info re directors & officers:
Whether in last 2 years has:
Has been a director of any other co that entered insolvency proceedings
Bkt
DRO
Other arrangement with creditors
What must the nominee submit to the court with their report?
Report in duplicate (2)
Copy of proposal
Copy of SA, or summary of
One copy of report endorsed with date of filing and returned to nominee.
NB Report is merely filed, not considered by court.
How long does a liquidator or administrator have to instigate a QDP of creditors to consider a CVA?
No specified time period.
What are a supervisor’s statutory powers?
May apply to court for directions
May apply to court for winding up order or administration order
Joint supervisors require resolution of creditors on split of powers
Plus:
Some of the management powers afforded to liquidators and administrators
What management powers are afforded to supervisors of CVAs?
Require continued supply of utilities
Further protection of essential supplies Protection of supplies of goods and services
Who receives a CVA progress report?
a) the registrar of companies;
b) the company;
c) the creditors bound by the CVA;
d) the members [unless the court permits advertisement]; and
e) if the company is not in liquidation, the company’s auditors
How long after a 12 month period must the supervisor’s progress report be delivered?
2 months (accompanied by a receipts and payments account)
How long after termination or implementation of CVA must notice be delivered to members and creditors bound by the arrangement? (including final report & R&P)
28 days
plus file at court and with CH
When does the supervisor of a CVA vacate office?
The supervisor must not vacate office until after the copies of the notice and report have been delivered to the registrar of companies and filed with the court.
