Voluntary arrangement definition

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Checklist for compromises of FCA-regulated entities: information requirements

Checklist for compromises of FCA-regulated entities: information requirements Where a scheme of arrangement, restructuring plan, company voluntary arrangement or individual arrangement is proposed over a regulated firm (defined below), the Financial Conduct Authority (FCA) will need to be involved from an early stage. The FCA is the conduct regulator for financial services firms and financial markets in the UK. It has a duty under section 1B of the Financial Services and Markets Act 2000 (FSMA 2000) to pursue certain objectives, one of which is the consumer protection objective. The FCA lists its statutory objectives as to secure an appropriate degree of protection for consumers and to protect and enhance the integrity of UK financial markets, with a view to reducing the number of proposed compromises (through a scheme of arrangement, restructuring plan, company voluntary arrangement or individual arrangement) that they do not consider to be appropriate (see FG22/4, para 1.2). On 5 July 2022, the FCA published guidance on compromises of regulated firms (see FCA Guidance FG22/4 July 2022 and...

Checklist for approval of CVAs involving the Pension Protection Fund

Checklist for approval of CVAs involving the Pension Protection Fund This Checklist sets out guidance to consider when drafting and seeking approval of a company voluntary arrangement (CVA) where the Pension Protection Fund (PPF) are involved. It is based on a guidance note 5 issued by the PPF in 2018 (see PPF Guidance Note 5: CVAs). When a company which is an employer (or all employers, in the case of a last man standing scheme) lodges a CVA proposal in court, a PPF assessment period will commence. The PPF will acquire the pension trustees’ voting right under section 137 of the Pensions Act 2004 (see Practice Note: The Pension Protection Fund—eligibility and entry). Essentially, the PPF will normally vote in favour or against a proposal rather than abstain from voting. The PPF is always concerned to ensure that it doesn’t set any precedent that would permit any pension schemes to be weakened where there is a possibility of PPF entry in the foreseeable future (the PPF note that...

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Voluntary arrangement in respect of a Limited Liability Partnership

This Practice Note explains how a Limited Liability Partnership (LLP) can enter into a voluntary arrangement (VA). This Practice Note does not apply to Limited Partnerships, for which, see Practice Note: Limited partnerships and insolvency—key principles.Applicable legislationThe Limited Liability Partnerships Act 2000 (LLPA 2000) introduced LLPs and must be read in conjunction with the Limited Liability Partnerships Regulations 2001 (LLPR 2001), SI 2001/1090. The LLPR 2001 apply the Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 to LLPs.The LLPR 2001 explain how the IA 1986 and IR 2016 apply to LLPs and clarify the following matters:•references to a company include references to an LLP•references to a director/officer include references to a member of an LLP•references to the articles of association of the company include references to the limited liability partnership agreement of an LLP•‘contributory’ means every present and every past member of the LLP who is liable to contribute to the assets of an LLP in the event of its being...

Voluntary arrangement of general partnerships

In addition to the better-known company voluntary arrangements (CVAs) and individual voluntary arrangements (IVAs), the insolvency legislation permits insolvent general partnerships to enter into compromise arrangements with their creditors. These are known as partnership voluntary arrangements (PVAs). When contemplating such a compromise, however, partners must bear in mind that they are personally liable in full for the debts of the partnership. It is, therefore, advisable in most, if not all instances, for the partners to enter into IVAs to fully protect their interests.Applicable legislationPart II of the Insolvent Partnership Order 1994 (SI 1994/2421) (IPO 1994) as amended by the Insolvent Partnership (Amendment) (No 2) Order 2002 (SI 2002/2708) applies the provisions of Part I of the Insolvency Act 1986 (IA 1986) on CVAs to insolvent partnerships by means of a PVA) (IA 1986, s 420).The IPO 1994, SI 1994/2421 also applies the provisions of what was IA 1986, Sch A1 to insolvent partnerships with amendments, enabling use of the moratorium procedure. IA 1986, Sch A1 (along with IA 1986, s...

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Grazing lease—Scotland—Style

Grazing lease—Scotland—Style Parties 1 [insert full name of party], residing at [insert address] (together with their successors as landlord under this Lease), are hereinafter together referred to as the Landlord; and 2 [insert full name of party], residing at [insert address] [and [insert full name of party], residing at [insert address]] (hereinafter [together] referred to as the Tenant). IT IS CONTRACTED and AGREED between the Parties as follows: 1 Definitions Act • means any act of the United Kingdom (UK) or Scottish Parliament and any delegated law made under it and any European Community legislation or decree having effect of law in the UK; Authority • means any statutory, public, local or other authority or any court of law or any government department or any of their duly authorised officers; Date of Entry • means [insert date of entry]; Ish • means [insert date of ish—no more than 364 days after date of entry]; Landlord's Neighbouring Property • means the neighbouring property retained by...

Process agent agreement

Process agent agreement This Agreement is made on [date] Parties 1 [insert name of Principal] [of OR a company incorporated in [insert jurisdiction] under number [insert registered number] whose registered office is at] [insert address] (Principal); and 2 [insert name of Process Agent] [of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at] [insert address] (Process Agent) (each of the Principal and the Process Agent being a party and together the Principal and the Process Agent are the parties). BACKGROUND The Principal wishes to appoint the Process Agent to provide the Services (as defined in clause 1) and the Process Agent has agreed to do so on the terms of this Agreement. The parties agree: 1 Definitions and interpretation 1.1 In this Agreement, unless otherwise provided: Business Day • means a day other than a Saturday, Sunday or public holiday[, on which clearing banks are open for non-automated commercial business in the [City of London]]; Commencement Date...

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If the Articles require consent of the shareholders to a) take steps to liquidate or dissolve a company and b) sell the company’s business or a significant proportion of it, is an Administrator bound by the Articles re the sale of the business and can an Administrator still be appointed without the requisite consent. If not, (re the sale) would a damages claim of questionable value be possible?

If the Articles require consent of the shareholders to a) take steps to liquidate or dissolve a company and b) sell the company’s business or a significant proportion of it, is an Administrator bound by the Articles re the sale of the business and can an Administrator still be appointed without the requisite consent. If not, (re the sale) would a damages claim of questionable value be possible? If the Articles require consent of the shareholders to take steps to liquidate or dissolve a company, can an Administrator still be appointed without the requisite consent? We refer you to Practice Notes: Court appointments—who can apply and in what circumstances? and Out-of-court administrator appointments—who can appoint and in what circumstances?. Inter alia, the company or the directors can appoint an administrator either by way of an out-of-court appointment or by way of a court application. An out-of-court appointment can be made by the directors and the company, except in the following circumstances: • when a winding-up petition has...

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Insolvency Service announces five-year director ban for former darts champion over £450,000 tax default

The Insolvency Service has announced a five-year director disqualification for former Professional Darts Corporation (PDC) world champion Rob Cross. The ban follows investigations revealing his company, Rob Cross Darts Limited, failed to pay £465,403 in taxes, comprising £403,896 in corporation tax, £49,071 in VAT, and £12,436 in PAYE and National Insurance contributions. The Insolvency Service's investigations found that Cross withdrew £306,403 between March 2020 and November 2023 that should have been paid to creditors. Cross has entered an individual voluntary arrangement to address the outstanding debts. The Secretary of State for Business and Trade accepted a disqualification undertaking preventing Cross from being involved in the promotion, formation or management of a company, without the permission of the court, until June 2030.

Insolvency Service publishes revised IVA protocol with enhanced consumer protections

The Insolvency Service has published a revised Individual Voluntary Arrangement (IVA) protocol—offering increased clarity and certainty for both consumers and creditors. The revised protocol comes into effect from 1 July 2025, introducing new consumer safeguards following research conducted in 2024, that found poor practices in 60% of sampled cases.