An Introduction to Administration and Company Voluntary Arrangements
- Price: £3.60
- Published: October 2014
- Type: Business Information Factsheet
- Format: PDF
If a company gets into financial difficulties, it can quickly become insolvent and may be forced into liquidation (being 'wound up') through the actions of the individuals or businesses to whom it owes money (its 'creditors'). However, if the underlying business is sound, it may be possible to rescue the company and allow it to continue trading.
Administration and Company Voluntary Arrangements (CVA) are formal procedures that a company can pursue as alternatives to liquidation.
This factsheet provides an introduction to administration and CVA. It explains when each procedure can be used and describes some of the main processes involved.
This factsheet should be used in conjunction with BIF 199, An Introduction to Company Insolvency and Liquidation.