False representations to obtain approval for a company voluntary arrangement
Produced in partnership with Micheal Murphy and Amelia Clegg of 23 Essex Street Chambers
False representations to obtain approval for a company voluntary arrangement

The following Corporate Crime practice note produced in partnership with Micheal Murphy and Amelia Clegg of 23 Essex Street Chambers provides comprehensive and up to date legal information covering:

  • False representations to obtain approval for a company voluntary arrangement
  • Elements of the offence
  • Officer of the company
  • False representation, fraudulent act, or omissions
  • Proposal for a company voluntary arrangement
  • Approval of the 'members of a company' and 'creditors'
  • Meaning of 'members of a company' and 'creditors'
  • Sentencing for fraud for the purposes of obtaining approval for a CVA

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for corporate crime?

The Insolvency Act 1986 (IA 1986) creates a specific offence relating to fraud for the purposes of obtaining approval for a company voluntary arrangement (CVA).

The offence can be tried in the magistrates' court or the Crown Court.

Elements of the offence

The offence is committed if:

  1. an officer of the company

  2. makes any false representations or

  3. fraudulently does or

  4. omits to do anything

  5. for the purposes of obtaining the approval of the members or creditors of a company

  6. to a proposal for a voluntary arrangement

This applies even if the proposal is not approved.

Officer of the company

For the purposes of IA 1986, Pt I, the term 'company' is defined as:

  1. a company registered under the Companies Act 2006 (CA 2006)

  2. a company incorporated in a EEA State (that is a Contracting Party to the Agr

Popular documents