Company Voluntary Arrangements (CVAs) are one of the Insolvency Act's business rescue procedures. A bit like Chapter 11 in the US, they are intended to provide a flexible way of restructuring a troubled business which will lead to a better outcome for creditors than other insolvency procedures, while allowing management to retrain control and shareholders to retain ownership. This article looks at the pros and cons of this approach.

What is a Company Voluntary Arrangement?

Small business owners are putting their companies and livelihoods at risk by failing to follow basic business principles. They are failing to keep tabs on the company finances, follow an unstructured approach to decision making and run the risk of costly legal battles because they pay lipservice to HR.