Challenging the approval of a CVA—unfair prejudice, material irregularity: the position under The Insolvency (England and Wales) Rules 2016
Produced in partnership with Lexa Hilliard QC of Wilberforce Chambers

The following Restructuring & Insolvency practice note produced in partnership with Lexa Hilliard QC of Wilberforce Chambers provides comprehensive and up to date legal information covering:

  • Challenging the approval of a CVA—unfair prejudice, material irregularity: the position under The Insolvency (England and Wales) Rules 2016
  • Grounds to challenge the company voluntary arrangement
  • Entitlement to challenge the CVA
  • Time limit for challenge to the CVA
  • Settlement
  • Jurisdictional challenge
  • Unfair prejudice
  • Material irregularity
  • Irregularity ‘at’ the company meeting or qualifying decision procedure
  • Irregularity ‘in relation to’ the company meeting or qualifying decision procedure
  • More...

Challenging the approval of a CVA—unfair prejudice, material irregularity: the position under The Insolvency (England and Wales) Rules 2016

Grounds to challenge the company voluntary arrangement

An application can be made to challenge the approval of a company voluntary arrangement (CVA) on one or more of these grounds:

  1. that the proposal, or aspects of it, did not constitute a composition or arrangement within the meaning of IA 1986, s 1(1)

  2. that the arrangement unfairly prejudices the interests of a creditor, member or contributory of the company

  3. that there has been some material irregularity at or in relation to the meeting of the company or in relation to the relevant qualifying decision procedure (see SIP 6)

Although the route to challenging a CVA (or IVA) is via the statutory provisions in IA 1986 Part I and

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