Members Voluntary Liquidation
(Solvent Liquidation only)
A guide to Members Voluntary Liquidation (MVL)
Got a company that has cash, assets, few liabilities and no future purpose? Then MVL could be the most cost effective solution to your problem.
If the company has cash or properties that can be turned into cash then MVL can be used to distribute the liquid assets to shareholders (NB subject to personal taxation depending upon an individuals circumstances). The company can then be dissolved and directors’ obligations removed.
Call us now for MVL – starting at a low £3,000!!
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Members Voluntary Liquidation Guide
Ok, what is an MVL?
This is a voluntary procedure to wind up the affairs of a SOLVENT company. If your company has cashflow problems or creditor’s actions against it, then this is not for you!! Please see What is Liquidation instead.
What does solvent mean?
It means that the company can pay all of its liabilities in full, plus statutory interest AND the liquidation costs involved in winding up the company, within 12 months of the declaration of solvency.
How do we do that?
Well call us and we will arrange for our liquidators to call you and talk you through the process and help prepare the paperwork after a free meeting. Then you fill out a statutory declaration of solvency. They will arrange everything else like creditors and legal notices, the meetings and guide you as directors and or shareholders.
You can get on with your life while they take care of the legal issues and then they will issue payments to shareholders in due course.
When is the MVL procedure appropriate?
When a solvent company has come to the end of its useful life and needs to be wound up. For example:
It is an old established family business where the owners / parents have retired and children or family do not want to run the business.
Shareholders want to retire and have a property within the company which they want to transfer into their personal estate.
Where a rationalisation of a group of companies is required; this may involve more than one MVL or a transfer to trading companies within the group.
Remember, it is NOT appropriate if the company is insolvent and you must not swear the declaration of solvency, this could be a criminal offence.