| Administration | Administration is designed to protect a company or partnership whilst plans are formulated to achieve one of the statutory objectives. |
| Administrator | A licensed insolvency practitioner appointed to manage the affairs of a company in administration. |
| Bankruptcy | Bankruptcy is used to deal with an individual who is unable to pay their debts. |
| Bond | Mandatory insurance cover to protect the uncharged assets of an estate, required by legislation for a licensed insolvency practitioner once formally appointed to act. |
| Bordereau | Another name for a bond. |
| CDDA | Company Directors Disqualification Act (1986). |
| Company Directors Disqualification Act 1986 | An act concerned with the disqualification of persons from being directors or otherwise concerned with a company’s affairs. This act is triggered when a company is placed into administration, receivership or insolvent liquidation. |
| Company Voluntary Arrangement | A Company Voluntary Arrangement is a procedure which enables an insolvent company to reach an agreement with its creditors to delay or compromise the payment of its debts. |
| Compulsory Winding-up | Compulsory liquidation is a process where the court orders that the company is wound up, following a winding-up petition being presented to the court. It is the only way an unsecured creditor can directly bring about the liquidation of a company |
| Creditors’ Voluntary Liquidation | Creditors’ Voluntary Liquidation is a procedure whereby the directors of an insolvent company can voluntarily take steps to wind up the company. |
| CVA | Company Voluntary Arrangement. |
| CVL | Creditors’ Voluntary Liquidation. |
| Decision Procedure | A method by which the views of creditors are sought. |
| Individual Voluntary Arrangement | An Individual Voluntary Arrangement is a legally binding agreement between an individual and their creditors. The agreement sets out a payment plan to repay creditors either in full or an agreed percentage of their debts. |
| IP | Insolvency Practitioner – see licensed insolvency practitioner. |
| IVA | Individual Voluntary Arrangement. |
| Licensed Insolvency Practitioner | A person licensed by one of the Chartered Accountancy bodies, Law Society or the Insolvency Practitioners’ Association. They are the only people able to act as an administrative receiver, administrator, liquidator, supervisor or trustee in bankruptcy. |
| Liquidation | The process whereby a company has its assets realised and distributed to creditors (insofar as funds permit). There are three types: members’ voluntary liquidation, creditors’ voluntary liquidation and compulsory winding-up. |
| Liquidator | A licensed insolvency practitioner appointed for the liquidation of a company. |
| Members’ Voluntary Liquidation | Members’ Voluntary Liquidation is a procedure whereby directors wish to wind up the affairs of a company and the company is in a position to pay creditors in full. |
| MVL | Members’ Voluntary Liquidation. |
| Nominee | A licensed insolvency practitioner nominated in a proposal for any type of voluntary arrangement. It is the duty of the nominee to convene the decision procedure (and shareholders for companies) for the purpose of considering the proposed voluntary arrangement. |
| Official Receiver | An agent of the Insolvency Service who primarily deals with bankruptcy and compulsory winding-up. |
| OR | Official Receiver. |
| Proxy | A document by which a creditor authorises another person to represent him at a meeting of creditors. The proxy may either be a general proxy (giving the proxy holder discretion as to how he votes) or a special proxy (requiring the proxy holder to vote as instructed. Corporate entities must be represented at a meeting by a proxy holder. |
| Proxy Holder | A person who attends a meeting on behalf of the party entitled to vote. |
| Retention (or Reservation) of Title | A provision under a contract for the supply of goods which purports to reserve ownership of the goods with the supplier until the goods have been paid for. |
| ROT | Retention (or reservation) of title. |
| SIP | Statements of Insolvency Practice. |
| Statements of Insolvency Practice | A series of best practice guidelines issued by The Association of Business Recovery Professionals which promote how licensed insolvency practitioners should act. |
| Supervisor | A licensed insolvency practitioner appointed by creditors to supervise a voluntary arrangement in terms of the insolvent party meeting their obligations. |
| Trustee (in Bankruptcy) | A licensed insolvency practitioner appointed over a bankruptcy estate. |
| Winding up | An alternative name for liquidation. |
| WUC | Compulsory winding-up. |
