Member of Begbies Traynor Group Global Advisory

Voluntary Liquidation Options

If you’re looking to place an insolvent company into liquidation, this process is called Creditors’ Voluntary Liquidation. If you’re considering liquidation for a solvent company, the process is Members’ Voluntary Liquidation.

Numerous companies trading in the UK at present may find themselves in an insolvent position but many may still be viable businesses and simply suffering from short-term cash-flow problems. However it’s time to take action if you feel that your company cannot continue trading without worsening the position of its creditors.

If you’re looking to place an insolvent company into liquidation, this process is called Creditors’ Voluntary Liquidation – known as a CVL. This solution is appropriate when there is no other option than the company ceasing to trade and being wound-up. In a CVL, assets are realised and sold with a view to paying a dividend to creditors where possible.

Your company is insolvent if its liabilities exceed its assets, and/or it cannot pay its debts when they fall due, and there is no prospect of the company continuing to trade. Under these circumstances, with assistance of the directors, the shareholders place the company into liquidation with the creditors having the final vote on the choice of Liquidator. We are qualified to undertake the role of Liquidator, using our extensive experience and expertise to secure the best outcome.

If you’re looking to place a solvent company into liquidation, the process is called Members’ Voluntary Liquidation – known as an MVL. This enables directors and shareholders to close down a solvent company and for any remaining assets – after creditors have been paid in full – to be distributed to its shareholders in a tax-efficient manner.

It can also be used to close down a subsidiary (within a group of companies) that has outlived its usefulness.  Shareholders appoint a liquidator, and a Statutory Declaration of Solvency is required, stating that the directors have conducted a full enquiry of company affairs and believe that it can repay its debts, with interest, within a 12-month period.

The liquidator is appointed at an extraordinary general meeting of the company, if approved by 75% of shareholders’ votes. The liquidator realises the company assets, settles any creditor claims and distributes the remaining assets to shareholders.

Our partners are licensed insolvency practitioners, so they can accept appointments as liquidators, using their industry knowledge to seek optimum results that will benefit all parties.

It is extremely important that the full tax implications are considered by the directors before selecting the Members’ Voluntary Liquidation option. If you need to know more about voluntary liquidation and how to begin the process, you can arrange a free consultation with one of our insolvency specialists at a regional Begbies Traynor office.

Contact our team

Processing...
Latest News
More than 90 jobs saved as waste disposal company is sold out of administration
More than 90 jobs saved as waste disposal company is sold out of administration
More than 90 jobs have been saved by the successful sale out of administration of Bale Group Ltd, one of the West Country's leading waste disposal companies. John Kelly and Ian Walker, of business rec…
32 jobs saved as estate agents is sold out of administration
32 jobs saved as estate agents is sold out of administration
Thirty two jobs have been saved by the successful sale out of administration of one of Hampshire’s longest established estate agents. The Southampton office of business recovery specialists BegbiesT…
Jobs Secured As Poole Firm Is Sold Out Of Administration
Jobs Secured As Poole Firm Is Sold Out Of Administration
A Poole-based engineering and construction firm has been sold out of administration in a deal which is expected to secure the future of the business. EWL Building Services Ltd appointed leading busine…
Jobs saved as Norfolk health and beauty company gets makeover
Jobs saved as Norfolk health and beauty company gets makeover
Following the administration of HMC Health & Beauty on 4 May 2016, joint administrators Julian Pitts and Bob Maxwell of Begbies Traynor in Leeds have secured the sale of the business which has a 1…
Blackburn sports surface company placed into administration
Blackburn sports surface company placed into administration
On 4 May 2016 Joanne Hammond and John Russell of Begbies Traynor in Sheffield were appointed as joint administrators of the Lancashire-based Thornton Sports Group which manufactures, fits and maintain…
Begbies Traynor appointed as Trustees to bankruptcy of former Blackburn Rovers and West Ham footballer Lucas Neill
Begbies Traynor appointed as Trustees to bankruptcy of former Blackburn Rovers and West Ham footballer Lucas Neill
Gary Shankland and Jamie Taylor of Begbies Traynor have been appointed as Trustees to the bankruptcy of Australian footballer Lucas Neill. The defender, who was previously captain of the Australia nat…
Menu