Tuesday, April 26, 2016

CDDA online reporting regime – MVL to CVL

You have an MVL that is converted to CVL, but do the new or old CDDA reporting regimes apply?  If the new online reporting regime applies, how do the Insolvency Service (IS) know about the case to put it on your Dashboard to allow you to submit an online report?

The new online reporting regime applies to insolvent companies where the “insolvency date” occurs on, or after 6 April.  In respect of MVLs converted to CVLs the “insolvency date” means “… the date on which the liquidator forms the opinion that the company will be unable to pay its debts in full (together with interest at the official rate) within the period stated in the directors’ declaration of solvency under section 89 of the Insolvency Act 1986”, i.e. the trigger date for the 28 day period within which to hold a meeting of creditors under section 95.

Where the members’ liquidator is replaced at the meeting of creditors, it is for the creditors’ liquidator to submit the conduct report, albeit that they will use the trigger date of the “insolvency date”, not the date of their appointment.

We struggle to see how the IS will actually identify all cases converted from MVL to CVL to enable them to enter them onto the IP’s Dashboard given that the appointment is not gazetted where the same liquidator remains in office.  It is only where a new liquidator is appointed at the section 95 meeting that their appointment will be gazetted, but even in those cases the IS will not be able to tell what the “insolvency date” is for CDDA reporting purposes. 

Where you are the liquidator following conversion from MVL you will need to check to ensure that the case appears on your Dashboard, and does so with the correct date.  If the case does not appear, or appears with the incorrect “insolvency date” then you will have to contact the IS to get them to update their case database.  At the foot of every page of the IS web-site are links to report issues with a particular page and also a “contact us” link.  Use the “contact us” link in the grey footer to report issues such as cases missing from the dashboard or other dashboard errors, as well as to request additional time to submit a case or to report new information after the submission of a report.