Chapter 13 - CVAs Flashcards
The nominees judgement for the report in a CVA should include 3 things:
- the company’s financial position is materially different from that contained in the proposals, explain the extent to which the information has been verified
- the CVA is manifestly unfair
- the CVA has a reasonable prospect of being approved and implemented
Does a supervisor of a CVA have powers under:
S238
S239
S244
No
Is a moratorium available in a CVA?
No, only available to small Companies
Who can a proposal for a CVA be made by?
- a liquidator or administrator where company is in liquidation or administration
- the directors s1(1)
Which SIP relates to CVAs?
SIP 3.2
CVA - within what time frame after a nominee endorses a notice of the proposal with the consent to act must the nominee file in court their comments on the proposal?
28 days
How many directors must verify the statement of affairs in the proposal for a CVA?
At least 1 director
CVA - what date must Statement of affairs be made up within?
Within 14 days of the notice of the proposal given to nominee
A nominee who consents to act must deliver a notice of that consent to the proposer within what time frame?
As soon as reasonable practicable after the proposal has been submitted to the nominee
CVA - in what time frame must the Creditors Decision be held after the nominee has filed their report on the proposal?
Within 28 days
How much notice needs to be given to creditors for a decision on a proposal for CVA?
14 days
CVA - if the creditors decision meeting and the shareholders decision meeting are not on the same day, within what time frame must the SH meeting be held after the creditors meeting?
Within 5 business days
CVA - after creditors receive notice of decision procedure, how long do they have to object and ask for a physical meeting? and how much notice should be given for physical meeting?
5 business days to ask for physical meeting
7 days notice for physical meeting
CVA - nominee calls meeting of creditors and meeting of shareholders, what needs to be sent?
- Notice of meeting
- Proposal of CVA
- SoA
- Nominees report
- Proof/proxy (voting papers)
- Fee guidance, or link to this
CVA - what percentage of creditors need to agree? on
1st vote
2nd vote
1st vote - 75% or more need to vote in favour
2nd vote - excludes connected parties, less than 50% reject
Cannot use general proxy in first round of voting and in 2nd round it is only used in the total, not within the vote
CVA - what if members vote against CVA?
If the creditors voted for CVA, then Company still enters CVA
CVA - if members want to appeal decision of creditors, what timeframe must this be done in?
Member can apply to court within 28 days
CVA - how long can a meeting be suspended for?
Up to an hour
CVA - if creditors decision meeting is adjourned, when must it be completed by?
Within 14 days from the original meeting
CVA - chairman’s report must be filed in court within what timeframe?
within 4 business days
CVA - chairman’s report must be filed at Registrar of Companies within what time frame after being filed at court?
As soon as reasonably practicable