Members Voluntary Liquidation (MVL)
There are many reasons why shareholders might choose to close down a company. The reasons range from retirement, through to merger with another company, change of circumstances resulting in the company not being required or for tax reasons.
How is a MVL different from a CVL?
An MVL is different from a CVL in that it is used when the company is solvent and allows the release of assets and the distribution of funds to members of the company.
Once all creditors have been discharged and Liquidators costs covered any surplus funds are returned to shareholders.
The costs of Liquidating a company are normally met from the sale of company assets. If no funds are available the directors or a third party would need to cover these costs. The costs vary on a case by case basis starting at £3,000 + VAT.
Should you decided to Liquidate a company a Licensed Insolvency Practitioner (IP) must be appointed. The IP calls a creditor’s meeting to appoint a Liquidator and at this point the liquidation process can get underway.
At Orchard Debt Solutions we work with a panel of Insolvency Practitioners and the most suitable IP will be selected for your circumstances. We will work closely with yourself and the IP to ensure that the process is hassle free from start to finish.