Company Voluntary Arrangement
This is an arrangement where the company makes a proposal to its creditors to offset its debts. This option involves the restructuring of debts over terms agreeable to both the company and its creditors. The proposal becomes binding if it is approved by creditors and adopted in Court.
Where an application for a Company Voluntary Arrangement is presented to the Official Receiver the following actions shall be undertaken:
- State Counsel will go through the application.
- If the application is properly drawn, approve the application and indicating the amount to be paid by the petitioner
- Direct the petitioner to make payment of statutory fees at the BRS accounts office.
- State Counsel generate a Certificate of Compliance
- Open a file.
- Where the Court appoints the Official Receiver as the supervisor or interim supervisor.
- State Counsel shall convene a creditors’ meeting.
- Investigate the affairs of the company.
- Conduct the meeting to arrive at terms agreeable to both the creditor’s and the debtor
- Conduct a vote for the approval or rejection of the proposal
- The State Counsel shall report to the court on the outcome of the meetings.
- Where the proposal is approved present it to Court for adoption.
- Where the Official Receiver is Confirmed as the supervisor, oversee the implementation of the proposal.