Simple Liquidation

In some situations, the directors of a solvent limited company may want to close the business. For example, it may be for tax reasons, the company may be part of a larger business and is no longer required, or the directors may simply wish to retire and there is nobody to take over the business. Whatever the reason, the directors can choose to enter a Members Voluntary Liquidation process .

Member voluntary liquidation is helpful for the business who do not wish to continue their operations even if they are solvent. This kind of situation arises when the director thinks that it is not variable for them to carry on the business even though it is not suffering from any kind of losses yet. This process is adopted to wind up the business by realising its assets and paying off the debts of creditors as per their seniority. This whole process requires the supervision of insolvency practitioners and this kind of liquidation can take place only after the approval of the shareholders. Below are members’ voluntary liquidation steps that need to be performed to complete this process.  Initial meeting - A initial meeting is called up as one of the primary steps of MVL where consensus is reached for the liquidation of the company using this process. Directors can discuss the viability of the business and reasons to close the operation. There can be other ways also to close the b...

A business doesn't need to be insolvent to go into liquidation as with voluntary solvent liquidation the company can be put to stop when directors think that the business is not viable anymore. There can be different reasons to choose for the MVL such as personal reasons, unviable business, retirement plans, and many others. In any of these situations if a business has relevant assets that are required to be distributed among the members or other related parties the process of voluntary liquidation can take place.  The company that chooses to go into this type of liquidation has to appoint an authorized insolvency practitioner to take care of the interest of the directors, creditors as well as shareholders. The whole process works as per the provisions of section 110 of the insolvency act 1986 and the company must be solvent to carry out this process. Declaring Solvency - The first step for going into the Voluntary Solvent Liquidation is to declare the solvency of the company by ...

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 tha...

SimpleLiquidation.co.uk is a regulated insolvency practice. Our liquidators are authorized by the Insolvency Practitioners Association and the Institute of Chartered Accountants in England and Wales. We are not an intermediary, broker, or sales company. As a solvent company, there must be sufficient assets to repay all the creditors as well as funds to pay the shareholders. The MVL may be initiated by the directors of the company but it will also need the approval of 75% of the shareholders to pass. If you are currently solvent but thinking of closing down a company, then a members  voluntary solvent liquidation  might be the best option. You can find out more about the process by getting in touch with our team. We look forward to hearing from you. Visit now!

A members voluntary liquidation process allows shareholders to appoint a liquidator in order to formally close down a solvent company. If you decide the MVL is the best course of action, you need to make a declaration of solvency. This will state that a full enquiry has been made into the state of the business that everything is in order. If you are currently solvent but thinking of closing down a company, then an MVL might be the best option for you. Our liquidators are authorised by the insolvency practitioners association and the Institute of Chartered Accountants in England & Wales. We are not a broker or sales company. Find more about the process by getting in touch with our team. We look forward to hearing from you. Visit now!