Limited Companies
Company Voluntary Arrangement
A formal route that may help an eligible company repay creditors while continuing to trade.
CVA Advice
What is a Company Voluntary Arrangement?
A Company Voluntary Arrangement (CVA) is a formal insolvency procedure that may allow a company to repay its creditors over an agreed period while continuing to trade. It is subject to creditor approval and the company’s ability to meet the proposed payments.
A CVA is proposed and supervised by an appropriately licensed insolvency practitioner, who provides the formal advice and assessment needed to determine whether it is suitable.
The CVA Process
A CVA follows a structured process, with formal advice and assessment provided by an appropriately licensed insolvency practitioner.
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1. Initial Assessment
The company’s financial position, cash flow and prospects are reviewed to assess whether a CVA may be appropriate.
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2. Proposal Preparation
A proposal is prepared setting out how the company intends to repay creditors over an agreed period.
A CVA requires careful planning, realistic forecasts and creditor support.
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3. Creditor Approval
Creditors vote on the proposal. If the required majority approves it, the arrangement becomes binding.
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4. Ongoing Supervision
The licensed insolvency practitioner supervises the arrangement while the company makes the agreed payments.
Key Considerations
What a CVA Means
For the Company
The company may continue trading, provided it can meet the terms of the arrangement and ongoing obligations.
For Directors
Directors remain responsible for managing the business and must work openly with the licensed insolvency practitioner.
For Creditors
Creditors consider the proposal and vote on whether the arrangement offers an acceptable outcome.
How We Can Help
Director Support Group provides practical, confidential support to help you understand your options and take confident next steps.
Formal insolvency advice and any CVA assessment are provided by an appropriately licensed insolvency practitioner.