A Guide to Members Voluntary Liquidation Process

Winding up a company is a difficult task and should be done only after acquiring complete knowledge of all the different aspects of this. There are different ways to wind up and close down a company. A person needs to know all these things in detail before selecting any such method for closure. A members voluntary liquidation process is one of the quickest and easiest ways to close a company. 


Liquidation can be of two types- compulsory and voluntary. Voluntary liquidation can be further classified into MVL (Members Voluntary Liquidation)  and CVL (Creditors’ Voluntary Liquidation). Both these liquidations are done when the company is no longer interested in running its business due to many different factors. In case your company is solvent while you plan for liquidation, you should go for an MVL but in case your company is insolvent at the time of liquidation, you should go for CVL.

Member’s voluntary liquidation process- 

The process comprises many different steps that should be taken to ensure that the liquidation runs smoothly. The first step is to have a detailed meeting with the board of directors. This meeting should include a deep analysis of the current financial status of the company. After the analysis, it must be certainly concluded that the company is solvent and can pay off its debts well. A declaration of solvency should also be formed to ensure that the company has enough funds. After this, a meeting with shareholders should be also planned. In this meeting, the directors should state all their findings and results from the previous meeting. Next, voting is to be conducted to understand the best interest of the shareholders. In this voting, at least 75% of votes should be in the favour of the MVL. Once the said number of votes is achieved, the company will fill the deed of liquidation, to begin with, the process. 

The members voluntary liquidation process might take time and also includes many different aspects. To get the best team to assist you with this, visit ‘Simple Liquidation’. Here you will get expert assistance for this process from a qualified insolvency practitioner with experience of more than 30 years. For more information, visit our website and fill up the contact us form. You can even catch up for a call or through email. Our expert advisors will revert you with all the necessary details. For more information, you can even check the FAQ section on our website.

Location: London, UK

Comments

  1. John Smeeth22 April 2021 at 01:21

    Great post, thanks for sharing this article. I am really interested in your blog.
    Liquidators in Dubai
    Company Liquidation Process in UAE

    ReplyDelete
  2. Best Advocate in Dubai9 July 2021 at 01:03

    Thanks for the Informative and Interesting Article. I would like to add something for them who look up for any legal services. Our aim is to give single tick access to people and organizations for all their legitimate and expert needs.
    liquidators in dubai

    ReplyDelete

Post a Comment

Popular posts from this blog

How to Get The Best Company Insolvency Advice?

Image
Insolvency and the closure of a company can easily scare the directors and members of the company. This is the last stage for a company and is always taken in some unforeseeable situations. If you feel that your company is at this stage, you can easily take some company insolvency advice to protect your company.  There are many insolvency liquidators and practitioners available in the United Kingdom. These are extremely professional in their tasks and efficiently with their work. This process includes many legal aspects to be followed and comes with a proper order of proceeding ahead. If you feel that your company is in a bad state and cannot cope with adverse situations, it is better to close the company after following all the legal procedures. From a legal point of view, every country has a separate set of things to be followed in a specific order. The company can be closed either by Creditors’ Voluntary Liquidation (CVL) or by Members Voluntary Liquidation (MVL). Both these ty...
Read more

Business Recovery and Insolvency Practitioner of the UK

There are about 1,600 licensed insolvency practitioners (IPs) in the UK; that doesn’t include the support staff in the background that assist the UK’s IP in providing comprehensive, professional and highly-experienced insolvency practitioner services for businesses across the country. But IPs don’t just deal with liquidating companies; they are also business recovery professionals, i.e. helping to rescue businesses that are struggling with debt. Liquidation is not always the only option for an insolvent company. If an IP is called in early enough, it is possible to rescue the company from closing using other formal insolvency procedures – administration, receivership and company voluntary arrangements (CVAs). What is an insolvency practitioner? Firstly, let’s quickly explain  what an insolvency practitioner is – an IP is a qualified, licensed and authorised practitioner that acts on behalf of an insolvent (or solvent in some cases) company in either liquidating the business, i.e. c...
Read more