Which approval is needed to implement a company voluntary arrangement (CVA)?
Answer and explanation
Correct answer: A. Approval by creditors holding at least 75% by value
- Step 1: A CVA is a binding agreement between a company and its creditors.
- Step 2: It needs the approval of creditors holding at least 75% in value of those voting.
Answer
Approval by creditors holding at least 75% by value.
Why not the others: Unanimity of creditors is not required. The auditors do not approve a CVA. Employees do not vote on a CVA as such.
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