What Is Members Voluntary Liquidation?
If your looking to close a company that is not in financial difficulty, then you may be wondering what is members voluntary liquidation. Liquidation isn’t only desirable when a company has become insolvent. Members Voluntary Liquidation or MVL is used when there are no debt liabilities but the directors and shareholders want to wind up the company.
Understanding what is members voluntary liquidation can be tricky as there are a couple of reasons why this might be the case. First, the company may not be serving a purpose any longer. Second, the director or owner could want to retire. Either way, because it’s a voluntary liquidation and there’s no debt involved, there’s no need for an enquiry by a licensed insolvency practitioner as to why the business failed.
You still need, however, to instruct one to carry out the process of liquidation:
- The directors will need to hold a meeting with shareholders and agree the intention to ask for an MVL. Because there can be some tax advantages to a process like this, it is often seen as a formality.
- Once the decision is agreed, a declaration of solvency needs to be signed. The licensed insolvency practitioner will check that this is a true representation of the company’s finances.
- The final stage of an MVL is the closure of the business and its removal from the register at Companies House.
If you are considering Members Voluntary Liquidation, the team at liquidation.co.uk will be able to give you the advice you need and take your company through the entire process from beginning to end. Our team have over 40 years experience working with SMEs from all industries. We appreciate this can be a delicate situation for all involved and pride ourselves on offering an industry leading service that remains confidential at all times.
Our service is confidential and you can contact us to speak to one of experts for free.