A Corporate Voluntary Administration (CVA) moratorium generally provides the company with additional time to defer repayment and carry on its business to facilitate the recovery of debts held, rather than resort to immediate liquidation. CVA is useful for businesses where time is needed to negotiate with their creditors or to find a safe and reliable solution to save the business from liquidation. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay With the introduction of the CVA under the Companies Act 2016, the company can now enter into a binding compromise or agreement with its creditors without the need for the compromise or agreement to be approved by the court. The key difference is that the implementation of the proposed debt restructuring will be assessed and monitored by an insolvency practitioner with minimal intervention by the courts. The moratorium on creditors' action will automatically start from the moment of submission of the proposal to the court by the applicant, who may be a director of the company, liquidator or judicial administrator. The meeting of the company and its creditors must be called by the insolvency practitioner, who has agreed to act as nominee. This proposed voluntary arrangement requires the approval of 75% in value of the company's creditors present and the vote at such meeting may be in person or by a designated representative, such as an attorney, and by a simple majority of the company's members. Once the proposal is approved, the proposed voluntary composition will take effect and will bind all the company's creditors. Unlike the current arrangement process, the law requires a qualified insolvency practitioner, known as a nominee, to conduct an initial assessment of the feasibility of the proposed CVA. Once the candidate has considered the proposed CVA, they will make a statement to the directors indicating whether in their opinion: a) the proposed CVA has reasonable prospects of being approved and implemented; b) The company is likely to have sufficient funds available during the proposed moratorium to enable the company to proceed with its business; e) Meetings of the company and creditors should be convened to consider the proposed CVA. When the applicant provides a positive representation regarding the proposed CVA, the list submits to the court a document setting out the terms of the proposed CVA and other requested documents. Unlike judicial management, the law establishes the admissibility of the CVA moratorium which will remain in force for a period between 28 days and 60 days from the moment of filing the required documents, i.e. (the proposed voluntary agreement, company declaration business, declaration of the holder) during which the company cannot be liquidated, a judicial administrator cannot be assigned, shares cannot be transferred, etc. Compared to judicial management, in CVA, the pledgee can appoint an insolvency practitioner to deal with his secured assets during the moratorium. During the moratorium in force, the nominee will convene the meeting of the company and the meeting of its creditors as he deems appropriate. Therefore, the implementation of the new business rescue mechanism offers greater flexibility in managing debts, while avoiding the likelihood of liquidation. Like the scheme of arrangement, the CVA allows the administrator to propose it to his company and creditors. However, the implementation of the agreement will be the responsibility of the candidate, who will act as trustee or otherwise for the purpose of.