Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Company voluntary arrangement definition

What does Company voluntary arrangement mean? A company voluntary arrangement (CVA) is a statutory restructuring that lets a company keep trading while compromising unsecured debts under a binding plan supervised by a licensed insolvency practitioner. It is used to avoid creditors’ voluntary liquidation, compulsory winding up or to exit administration, often to compromise landlord and trade liabilities. The regime is in Part I of the Insolvency Act 1986 and the Insolvency Rules 2016 (with parallels in the Insolvency (Northern Ireland) Order 1989), and operates similarly in England & Wales, Scotland and Northern Ireland. Directors, or an administrator/liquidator, propose the CVA through a nominee (who becomes...

Company voluntary arrangements for commercial landlords: rent treatment, forfeiture rights, guarantees, voting, challenges and practical guidance (England and Wales)

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

What is a CVA?

A Company voluntary arrangement (CVA) is an agreement between a company and its creditors, overseen by an insolvency practitioner. That practitioner is initially the ‘nominee’, becoming the ‘supervisor’ once the arrangement takes effect. A CVA is typically put forward by the company’s Directors, although an administrator or liquidator can also make the proposal. Its objective is to compromise the company’s debts or to set out a scheme for managing its affairs.

The principal legislative sources are sections 1–7B of the Insolvency Act 1986 (IA 1986) and Part 2 of the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024.

For further reading on CVAs, the steps to implement them and their effect, see the following Practice Notes:

Company voluntary arrangements—an introductory guide
In what circumstances can a CVA be proposed and by whom?
The CVA proposal and procedure
The process and effect of approval of a company voluntary arrangement (CVA)

For a discussion of property law considerations within a CVA, see Practice Note: Property law aspects of Company Voluntary Arrangements (CVAs).

Why are CVAs relevant to landlords?

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Web page updated on 21/05/2026

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