The following Restructuring & Insolvency guidance note Produced in partnership with David Menzies of ICAS provides comprehensive and up to date legal information covering:
This Practice Note has been archived and is not maintained.
Changes to decision-making will significantly impact the process to commence CVLs
Creditor nomination can only be proposed by deemed consent or virtual meeting
Using deemed consent procedure may increase uncertainty of timing of creditor liquidator nomination
The effect of the decision-making changes will be perhaps most evident in relation to CVLs where meetings under section 98 of the Insolvency Act 1986 (IA 1986) have been held to allow creditors to appoint a liquidator to a company.
Rules in relation to CVLs are contained in the Insolvency (England and Wales) Rules 2016, SI 2016/1024, part 6 (IR 2016).
When IR 2016, SI 2016/1024 come into effect on 6 April 2017 the initial steps for a CVL will change significantly. The process will become as follows:
The process to obtain the members resolution to wind-up will remain unchanged. Holders of qualifying floating charges are still required to be given at least five business days’ notice of the intention for the company to pass a resolution to wind-up voluntarily and the resolution cannot be passed until the expiry of that notice or unless earlier consent is obtained from the qualifying floating charge holder.The company can pass the resolution either by correspondence or at a physical meeting as normal under
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