The Compendium

Before the proposal is accepted by creditors, the Nominee must keep a watchful eye on developments. The Nominee must withdraw his consent to act if:

• the directors fail to provide him with any information he requests;
• he forms the opinion that the proposed arrangement no longer has a reasonable prospect of being approved and implemented; or
• that the company will not have sufficient funds to enable it to carry on in business.

The Nominee will, if and when the proposal is accepted by 75% of more of the creditors in value, almost certainly go on to become the Supervisor of the Arrangement.

[See ‘Insolvency Practitioner’, ‘Company Voluntary Arrangement’, ‘CVA’, ‘Individual Voluntary Arrangement’, ‘IVA’, ‘Supervisor’ and ‘Insolvency Rules’.]

Non-Executive Director A non-executive director is one who sits at some board meetings of a company and offers advice and expertise as a result of their personal experience.

They are usually not part of the decision making process and so will usually not be pursued by insolvency professionals as ‘directors’ or ‘shadow directors’.

[See ‘Director’ and ‘Shadow Director’.]

Non-Main Proceedings Non-main proceedings are those that can be taken by an Insolvency Practitioner in England & Wales where:

1. There are assets in another (foreign) jurisdiction which can be pursued – and, usually, an action has been taken by a person in that jurisdiction to either pursue a claim or even wind-up an unregistered local ‘company’. Or,
2. Where there is not a COMI in England & Wales, but there is an ‘establishment’.

[See ‘Insolvency Practitioner’, ‘Centre of Main Interests’, ‘COMI’ and ‘Establishment’.]