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insolvency > Chapter 13 - CVAs > Flashcards

Chapter 13 - CVAs Flashcards

1
Q

The nominees judgement for the report in a CVA should include 3 things:

A
  • 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
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2
Q

Does a supervision of a CVA had powers under:
S238
S239
S244

A

No

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3
Q

Is a moratorium available in a CVA?

A

No, only available to small Companies

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4
Q

Who can a proposal for a CVA be made by?

A
  • a liquidator or administrator where company is in liquidation or administration
  • the directors s1(1)
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5
Q

Which SIP relates to CVAs?

A

SIP 3.2

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6
Q

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?

A

28 days

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7
Q

How many directors must verify the statement of affairs in the proposal for a CVA?

A

At least 1 director

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8
Q

CVA - what date must Statement of affairs be made up within?

A

Within 14 days of the notice of the proposal given to nominee

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9
Q

CVA - in what time frame must the Creditors Decision be held after the nominee has filed their report on the proposal?

A

Within 28 days

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10
Q

How much notice needs to be given to creditors for a decision on a proposal for CVA?

A

14 days

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11
Q

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?

A

5 business days to ask for physical meeting

7 days notice for physical meeting

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12
Q

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?

A

Within 5 business days

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13
Q

CVA - nominee calls meeting of creditors and meeting of shareholders, what needs to be sent?

A
  • Notice of meeting
  • Proposal of CVA
  • SoA
  • Nominees report
  • Proof/proxy (voting papers)
  • Fee guidance, or link to this
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14
Q

CVA - what percentage of creditors need to agree? on
1st vote
2nd vote

A

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

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15
Q

CVA - what if members vote against CVA?

A

If the creditors voted for CVA, then Company still enters CVA

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16
Q

CVA - if members want to appeal decision of creditors, what timeframe must this be done in?

A

Member can apply to court within 28 days

17
Q

CVA - how long can a meeting be suspended for?

A

Up to an hour

18
Q

CVA - if creditors decision meeting is adjourned, when must it be completed by?

A

Within 14 days from the original meeting

19
Q

CVA - chairman’s report must be filed in court within what timeframe?

A

within 4 business days

20
Q

CVA - chairman’s report must be filed at Registrar of Companies within what time frame after being filed at court?

A

As soon as reasonably practicable

21
Q

CVA - notice of creditors decision must be sent to creditors/members within what time frame?

A

As soon as reasonably practicable

22
Q

If an administration is converting to a CVA, what does not need to be included?

A

A report to he court and comments on proposal are not required if the liquidator or administrator is to act as nominee.

Nor do they need to give consent again, as it is the administrator that is drafting proposal

23
Q

CVA - how long do creditors have to appeal a CVA?

A

28 days

24
Q

CVA - on what grounds could a creditor appeal a CVA?

A
  • Material irregularity
  • Unfair prejudice
25
Q

When must progress reports be completed in a CVA?

A

First report must cover the period of 12 months commencing on date when CVA was approved and every subsequent 12 months.

Must be sent to CH within 2 months to CH, creditors and AUDITORS

26
Q

Who must the final report in a CVA be sent to? and within what time frame?

A

Within 28 days of completion, must send notice that CVA has been fully implemented or terminated together with his report summarising his receipts and payments within 28 days.

Sent to creditors, members, registrar of Companies and COURT

27
Q

Does the supervisor of a CVA have the power to present a winding up petition?

A

Yes

28
Q

Which of the following persons may not make a proposal for CVA?
Directors
Contributories
Liquidator where Co. in liquidation
Administrator where Co. in administration

A

Contributories

insolvency (16 decks)

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