Role, powers, functions and duties of nominee of company voluntary arrangements
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:

  • Role, powers, functions and duties of nominee of company voluntary arrangements
  • Who is the nominee and what is their role in the CVA?
  • The nominee
  • The nominee and a proposal by the directors
  • The proposal
  • The nominee’s report
  • The nominee and administration or liquidation
  • The nominee and consideration of the proposal
  • Enforcement of nominee’s duties

Role, powers, functions and duties of nominee of company voluntary arrangements

Who is the nominee and what is their role in the CVA?

The nominee is a key individual in a company voluntary arrangement (CVA). For further information on CVAs generally, see: Company voluntary arrangements—overview.

The nominee has a role up to the time at which the proposal for the CVA is either approved or rejected.

The nominee must be a licensed Insolvency practitioner (IP). This requirement ensures that a CVA will be subject to independent scrutiny. Previously, there was a provision under IA 1986, s 389A to allow other individuals to be authorised to act solely as nominees or supervisors in voluntary arrangements. However, these provisions were never used and IA 1986, s 389A was removed by the Deregulation Act 2015 (DA 2015) and replaced by the introduction of a regime for the partial authorisation of insolvency practitioners (see Practice Note: The Deregulation Act 2015 [Archived]).

The nominee and supervisor of a CVA occupy nearly identical roles to the nominee and supervisor of an individual voluntary arrangement (IVA). Therefore case law on IVAs in this area is relevant to CVAs (see Practice Note: Role, powers, functions and duties of the nominee and supervisor of an individual voluntary arrangement (IVA)). An insolvency practitioner should act professionally and with objectivity in each role associated with the arrangement. Failure to do

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