Insolvency Act 1986, section 4A

Approval of arrangement

Part I Company Voluntary Arrangements

(1)This section applies to a decision, under section 4, with respect to the approval of a proposed voluntary arrangement.

(2)The decision has effect if, in accordance with the rules—

(a)it has been taken by [F44 the meeting of the company summoned under section 3 and by the company's creditors pursuant to that sectionF44] , or

(b)(subject to any order made under subsection [F45 (6)F45] ) it has been taken by the [F46 company's creditors pursuant toF46] that section.

(3)If the decision taken by the [F47 company's creditorsF47] differs from that taken by the company meeting, a member of the company may apply to the court.

(4)An application under subsection (3) shall not be made after the end of the period of 28 days beginning with—

(a)the day on which the decision was taken by the [F48 company's creditorsF48] , or

(b)where the decision of the company meeting was taken on a later day, that day.

(5)Where a member of a regulated company, [F49 as defined by section A49(13)F49] , applies to the court under subsection (3), the [F50 appropriate regulatorF50] is entitled to be heard on the application.

[F51 (5A)The appropriate regulator” means—

(a)where the regulated company is a PRA-regulated company [F52 as defined by section A49(13)F52] , the Financial Conduct Authority and the Prudential Regulation Authority, and

(b)in any other case, the Financial Conduct Authority.F51]

(6)On an application under subsection (3), the court may—

(a)order the decision of the company meeting to have effect instead of the decision of the [F53 company's creditorsF53] , or

(b)make such other order as it thinks fit.F43]

Definitions used in section 4A 2

the company

2 Section 233B does not apply in relation to a contract for the supply of goods or services to a company (“the company”) where any of paragraphs 3 to 11 applies.

Defined in Sch.4ZZA para.2 · see it in the full Act
company

(4) In this Part “company” means—

(a)a company registered under the Companies Act 2006 in England and Wales or Scotland;

(b)a company incorporated in an EEA State ...; or

(c)a company not incorporated in an EEA State but having its centre of main interests in a member State (other than Denmark) or in the United Kingdom .

Defined in s.1(4) · see it in the full Act

Cases considering section 4A 8

Nortel Networks UK Ltd, Re

[2015] EWHC 2506 (Ch) · 27 August 2015

The court relied on the binding effect of an approved company voluntary arrangement on creditors entitled to vote, making the CVA a suitable mechanism for modifying statutory distribution rights (see para [41]).

Thomas v Ken Thomas Ltd

[2006] EWCA Civ 1504 · 9 October 2006

The court referred to this provision as governing approval of a company voluntary arrangement. (see para [33])

The Mayor and Commonalty and Citizens of the City of London v Robinson Webster (Holdings) Limited

[2026] EWHC 151 (Admin) · 30 January 2026

Gives effect to a CVA duly approved by the members and creditors. (see para [36])

What each judgment says about section 4A is in the case-law panel in the full Act.

Amendments and notes

14 notes from legislation.gov.uk

Amendments

  1. F43S. 4A inserted (1.1.2003) by 2000 c. 39, ss. 2, 16(1), Sch. 2 Pt. I para. 5; S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)
  2. F44Words in s. 4A(2)(a) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 5(2)(a); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)
  3. F45Word in s. 4A(2)(b) substituted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 3 para. 5(2) (with ss. 2(2), 5(2))
  4. F46Words in s. 4A(2)(b) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 5(2)(b); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)
  5. F47Words in s. 4A(3) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 5(3); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)
  6. F48Words in s. 4A(4)(a) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 5(3); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)
  7. F49Words in s. 4A(5) substituted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 3 para. 5(3) (with ss. 2(2), 5(2))
  8. F50Words in s. 4A(5) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 52(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
  9. F51S. 4A(5A) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 52(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
  10. F52Words in s. 4A(5A) substituted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 3 para. 5(4) (with ss. 2(2), 5(2))
  11. F53Words in s. 4A(6)(a) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 5(3); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)

Modifications

  1. C92Ss. 1-7B applied (with modifications) (E.W.) (15.3.2024) by The Water Industry (Special Administration) Regulations 2024 (S.I. 2024/205), regs. 2(2), 5(1), 43-45 (with reg. 64)
  2. C93Ss. 2-6 applied (with modifications) by 2009 c. 1, s. 154(3A) (as inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(6)(c))
  3. C97S. 4A(2) modified (1.1.2003) by 1986 c. 53, Sch. 15A para. 8A (as inserted (1.1.2003) by 2000 c. 39, s. 2, Sch. 2 Pt. II para. 14(3)); S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)