A Members’ Voluntary Liquidation (MVL) (or Solvent Liquidation) enables shareholders to put a solvent company into liquidation in order to unlock their capital.
It can be used to secure an orderly winding up of a company or to close down a subsidiary (within a group of companies) that has outlived its usefulness.
Shareholders appoint a Liquidator, and a Statutory Declaration of Solvency is required, stating that the directors have conducted a full enquiry of the company affairs and believe that it can repay its debts, with interest, within a 12-month period.
The Liquidator is appointed at a general meeting of the company, if approved by 75% of shareholders’ votes. The Liquidator realises the company assets, settles any creditor claims and distributes the remaining assets to shareholders.
We are licensed insolvency practitioners, so we can accept appointments as Liquidator, using our industry knowledge to seek optimum results that will benefit all parties.
It is extremely important that the full tax implications are considered by the directors before selecting the Members’ Voluntary Liquidation option.
If you think a MVL might be right for your company, get in touch today for a confidential consultation with no obligation.