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 3 Insolvency Practitioners among their team who are also our company directors.
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.
To understand more about a Members’ Voluntary Liquidation please get in touch or read more here.