Members’ Voluntary Liquidation Process

Members’ Voluntary Liquidation Process

1) Instruct a Licensed Insolvency Practitioner

To place your company into Members’ Voluntary Liquidation you will need to instruct a Licensed Insolvency Practitioner to act on your behalf in carrying out the correct procedure. Liquidation.co.uk currently has 4 Insolvency Practitioners among their staff.

2) Board Meeting

The Directors of the company will be required to convene and hold a Board Meeting at which the Directors, among other things, will resolve to issue notices to the shareholders of the company convening an Extraordinary General Meeting (EGM).

It should be noted that with shareholders’ approval a shareholders meeting can be held on “no notice” and as such to move from the decision to liquidate to appoint the liquidators and distribute the assets can be a very short period of time, if required.

3) Declaration of Solvency

The Directors will also resolve to sign a Declaration of Solvency, which is a document showing the assets and liabilities of the company and confirms that the company can pay its debts in full within 12 months including statutory interest. This needs to be signed and sworn in front of a solicitor by all or the majority of Directors.

4) Notice to Shareholders

The notices of the EGM must be issued to all of the Shareholders of the company giving at least 21 days’ notice. However with 95% approval, this notice can be shortened.

5) Extraordinary General Meeting

At this meeting it will be resolved that the Company be placed into Members’ Voluntary Liquidation and the chosen Liquidator be appointed.

6) Notice of Appointment

A notice of appointment of Liquidators will be provided to Companies House and advertised in the London gazette.

7) Company Funds

Immediately upon appointment we will request that the funds in the Company bank account be transferred to a designated case account from where they will be distributed to Company Shareholders in accordance with the Company’s articles.

8) Clearance from H M Revenue & Customs

We will request confirmation from HMRC that their are no outstanding matters and that the Liquidation process may be finalised.

9) Removal from Register

We will request that Companies House remove the Company from the register

How We Can Help

At Liquidation.co.uk we have helped thousands of Solvent Companies wind up their affairs using the MVL process. Please contact us today for free confidential advice.