Directors have a legal obligation to act properly and responsibly and to put the interests of their creditors first. Risks associated with winding up a business may include disqualification from the activity of director of other companies, as well as personal reputation as a director. In extreme cases, directors may be personally considered to be subject to assessment for erroneous payments to creditors. However, since a voluntary agreement of the company is in the interest of creditors, there is no investigation into the director`s conduct. Under UK insolvency law, an insolvent company can enter into a voluntary agreement (CVA). The CVA is a form of composition similar to the personal IVA (individual voluntary agreement) in which an insolvency procedure allows a company with debt problems or insolvent to enter into a voluntary agreement with its creditors on the repayment of all or part of its corporate debt over an agreed period. [Citation required] The application for a CVA may be submitted with the consent of all company executives, the company`s legal directors or the designated liquidator.  3. The parties can, by mutual agreement, set up electronic systems for the granting, transmission and receipt of FLEGT authorizations. CONSIDERING the importance that the parties attach to the principles and rules of multilateral trading systems, in particular the rights and obligations defined in the 1994 General Agreement on Tariffs and Trade (GATT) and other multilateral agreements establishing the World Trade Organization (WTO), and that they must be applied in a transparent and non-discriminatory manner; Under a voluntary agreement under corporate law, directors are not personally liable for the company`s debts unless they have provided a personal guarantee. Even if a director has provided a guarantee, a CVA means that a director is only responsible if the company is unable to pay and continues to have a source of income.
A voluntary agreement of the company can only be implemented by a judicial administrator who develops a proposal for creditors. A creditors` meeting is held to verify whether the CVA is accepted. As long as 75% (depending on the value of the debt) of the voting creditors agree, the CVA is accepted. All creditors of the company are then subject to the terms of the proposal, whether they have voted or not. Creditors are also not in a position to take further legal action as long as conditions are met and existing legal actions, such as a liquidation decision, are suspended.  3.