Q&As

How will company voluntary arrangement meetings be conducted if physical meetings are no longer possible or practical as a result of coronavirus (COVID-19)?

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Produced in partnership with Aman Sehgal of Keystone Law
Published on LexisPSL on 31/03/2020

The following Restructuring & Insolvency Q&A produced in partnership with Aman Sehgal of Keystone Law provides comprehensive and up to date legal information covering:

  • How will company voluntary arrangement meetings be conducted if physical meetings are no longer possible or practical as a result of coronavirus (COVID-19)?

How will company voluntary arrangement meetings be conducted if physical meetings are no longer possible or practical as a result of coronavirus (COVID-19)?

Guidance has not yet been published for insolvency practitioners in relation to physical company voluntary arrangement (CVA) meetings.  However, it is highly unlikely a CVA meeting will be required to be held in person by the insolvency practitioner due to the government’s guidance on social distancing due to the coronavirus (COVID-19) outbreak. Therefore, meetings are likely to be held virtually in accordance with the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 15.5. However, if creditors do request a physical meeting, the meeting may be significantly delayed until such time the government relaxes the social distancing rules.

Coronavirus is having a significant impact on many businesses and is unfortunately leading to many being at risk of insolvency. There is likely to be a rise in CVAs due to coronavirus. It is therefore essential for CVA meetings to be held so that directors can come to an arrangement with the creditors. However, physical meetings may not be possible due to the government issuing strict guidance requiring all individuals to social distance and stay at home where possible. These rules on social distancing mean that physical meetings are no longer possible at this time.

Where an insolvency practitioner seeks the creditors’ approval on

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