Commentary

27 All CVAs: the legal basis and effect of the arrangement

BANKRUPTCY AND INSOLVENCY (CORPORATE INSOLVENCY) vol 3(3)
| Commentary

27 All CVAs: the legal basis and effect of the arrangement

| Commentary

27 All CVAs: the legal basis and effect of the arrangement

Earlier legislation relating to compositions and arrangements with creditors directly imposed the arrangement on the creditors who were, therefore, bound by statute, and not by agreement. After some initial doubt, it is now settled that Part I of the Insolvency Act 1986 does not operate in that way. Under the legislation as originally enacted, the approved voluntary arrangement bound every person who, in accordance with the rules, had notice of, and was entitled to vote at, the creditors’ meeting1, whether or not he was present or represented at the

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