Members’ Voluntary Liquidation (MVL)
Suitable for: Directors who believe their company is solvent and no longer wishes to trade.
An MVL is often referred to as a solvent winding-up and requires the creditors to be paid in full. An MVL results in the company being eliminated, distributing the remaining assets to the creditors and the shareholders and directors being left with no outstanding matters.
For an MVL to be completed, the directors must swear a declaration of solvency following an inquiry into the company’s affairs. The creditors must be paid in full with interest at the official rate within 12 months.
Typically, an Members’ Voluntary Liquidation is the preferred method where a company has significant distributable reserves or an uncertain corporate history. Directors often favour this method as there is a robust due diligence process and once the company no longer exists; there is no recourse to the shareholders.
– The distribution of assets to shareholders is efficient
– The tax paid on company assets could be as little as 10%
– Myers Clark can manage the winding down of the business
– The control of the company’s assets is given to the Insolvency Practitioner
– An advert for claims will be published as part of the closure process, the company will be listed as solvent
– If there are any unforeseen issues, this could become a Creditor’s Voluntary Liquidation
– The process can be quite labour intensive; there are a lot of statutory requirements to be met when the assets are sold, accounts are closed and paperwork is processed
For further information, please contact Michael Goldstein on 01923 224411 or email him; email@example.com