Members’ Voluntary Liquidation is a type of liquidation offered for solvent companies, which is initiated by the businesses shareholders. An MVL generally arises when the directors of a company believe the business has enough financial health to pay its debts when due and payable. From here there are two main steps to follow:
1. The directors of the company make a recommendation to its members to wind up the company.
2. The company’s members appoint a liquidator to return capital to shareholders, dispose all assets, pay any liabilities and wind up all of the company’s affairs.
The decision to close a company can be driven by many things, including personal aspirations such as retirement or exploring new ventures. When a company is solvent, and the directors and shareholders wish to close it, many businesses choose to opt for a Members’ Voluntary Liquidation. Here are three benefits of choosing an MVL:
Do you want peace of mind knowing your businesses affairs can be wound up properly and managed with experts to guide you every step of the way? Let one of our highly qualified insolvency practitioners walk you through the process of a Members’ Voluntary Liquidation. Together, we’ll get it done right the first time.