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This means they must meet on a regular basis, act as a company preparing and scrutinising financial reports, as well as submit accounts and returns to HMRC and Companies House to ensure that they do not leave themselves open to claims of negligence.
[See ‘Limited’, ‘PLC’ and HMRC’.]
The Company Directors Disqualification Act 1986 (CDDA) is a statute which sets out the procedures for company directors to be disqualified in certain cases of misconduct.
Disqualification can be for between two and 15 years and, during this time, a person is prohibited from being involved in the promotion, formation or management of a company.
[See ‘Director’, ‘Directors Conduct Assessment’.]
A Company Voluntary Arrangement (CVA) is an insolvency procedure that allows a company to settle debts by paying only a proportion of the amount owing to creditors, and to come to some other arrangement with its creditors over the payment of its debts.
A CVA is known as a ‘debtor-in-possession’ process, whereby the company’s directors – its management team – remain in their post and run the business after the Arrangement is in place. An Insolvency Practitioner, known as a ‘Supervisor’ oversees their activities, ensuring that the agreement set out in the contractual Arrangement is maintained.
A CVA comes into force at the time when the company’s creditors approve a proposal drafted by the directors (with the assistance of an Insolvency Practitioner, known as a ‘Nominee’) made in respect of the company. However, it is common for the CVA documentation to specify a different date from which its provisions apply.
The approval of a CVA proposal (or any modification of it) by the company’s creditors requires a vote in favour by at least 75% (by value) of the creditors who
