2 minutes

Rules vary slightly in Scotland but in the context of a UK company, “giving notice of a voluntary arrangement taking effect” refers to the process of officially notifying creditors, shareholders, and other relevant parties that a proposed voluntary arrangement has been approved and is now legally binding and in effect.

A voluntary arrangement is a formal agreement made between a financially distressed company and its creditors to restructure its debts or operations. The arrangement outlines the terms and conditions under which the company will repay its debts or make alternative arrangements with its creditors.

Once the proposed voluntary arrangement has been approved by the requisite majority of the creditors and the court, it is necessary to provide formal notice to all stakeholders. This notice is known as the “notice of voluntary arrangement taking effect.”

The purpose of this notice is to inform creditors, shareholders, and other interested parties that the voluntary arrangement has been successfully approved and has become legally binding. It typically includes details such as the date of approval, the terms and conditions of the arrangement, and any specific actions or obligations that the stakeholders need to take.

Giving notice of voluntary arrangement taking effect ensures transparency and compliance with the approved arrangement. It allows all parties involved to be aware of the terms and their respective roles and responsibilities moving forward. Creditors, shareholders, and other interested parties should carefully review this notice to understand their rights, obligations, and any specific instructions or actions required under the voluntary arrangement.

By providing this notice, the company demonstrates its commitment to fulfilling the terms of the arrangement and seeks cooperation and support from its stakeholders in implementing the agreed-upon restructuring or repayment plan.

These notices are filed with Companies House against the registered company number. All UK company liquidation notices and updates are tracked centrally by Doorda.