Role, powers, functions and duties of the supervisor of a company voluntary arrangement
Produced in partnership with Lexa Hilliard QC of Wilberforce Chambers
Role, powers, functions and duties of the supervisor of a company voluntary arrangement

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 the supervisor of a company voluntary arrangement
  • Who is the supervisor and what is the supervisor’s role in a company voluntary arrangement (CVA)?
  • The supervisor and statutory duties
  • The supervisor and VAT payments
  • The supervisor and the terms of the CVA
  • Enforcing the duties of the supervisor
  • The Supervisor and vacation of office

Who is the supervisor and what is the supervisor’s role in a company voluntary arrangement (CVA)?

The supervisor is a key individual in a CVA. For further information on CVAs generally, see Practice Note: Company Voluntary Arrangements.

If a proposal for a CVA is approved, the supervisor is responsible for ensuring that the CVA is implemented in accordance with its terms.

The supervisor must be a licensed insolvency practitioner (section 1(2) of the Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 2.3(1)(i)). 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 and replaced by the introduction of a regime for the partial authorisation of insolvency practitioners (see Practice Note: The Deregulation Act 2015 [Archived]).

The IR 2016, SI 2016/1024 apply to CVAs (for further reading, see Practice Note: The Insolvency (England and Wales) Rules 2016—Part 2: Changes to company voluntary arrangements (CVAs) [Archived]).

A supervisor of a CVA occupies an identical role to a 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

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