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A Controlled Goods Agreement (CGA) is also known as a walking possession agreement’. It is used by a High Court Enforcement Officer (HCEO) or other certified bailiff when entering the premises of a debtor, following an order of the court, and securing the debtor’s goods to the value of the debt.
The HCEO or other enforcement officer will make a list, called an ‘inventory’, of anything that belongs to the debtor which they can take to sell to pay off the debt. This is called ‘taking control’ of the debtor’s belongings.
If the debtor wants to pay the debt in full, but cannot do so, a ‘controlled goods agreement’ is made with the enforcement officer, which stops them removing the belongings they have ‘taken control of’. The CGA will include an agreement to pay (by way of a plan) – usually by making regular payments.
If the payments are not made, the enforcement officer will remove the listed inventory of assets to sell and pay the debt.
[See ‘High Court Enforcement Officer’, ‘HCEO’, Execution’ and ‘CRAR’.]
The Corporate Insolvency and Governance Act 2020 (CIGA) came into force on 26 June 2020.
CIGA was introduced during the 2020 ‘lockdowns’ as a result of the Covid 19 pandemic and contained a range of temporary measures to support companies affected by trading restrictions linked to the pandemic response, as well as permanent measures to help companies recover as the economy emerged, and for the longer term. The three permanent measures are a Moratorium, a Restructuring Plan and a restriction on Ipso Facto measures.
The temporary measures introduced by CIGA 2020, such as the suspension of serving statutory demands and restriction on issuing winding-up petitions, have been removed following a return to normal activity after the worst of Covid ended.
[See ‘Moratorium’, ‘Restructuring Plan’ and ‘Ipso Facto Measure’.]
