Members Voluntary Liquidation MVL Process
A Members Voluntary Liquidation MVL is the procedure to wind a company up (or deal with the closure of your company) if the company is solvent – in other words, there are sufficient company assets which can be sold or realised, to pay off all the debts of the company.
This can sometimes be a very fine decision because the costs of the process and interest on creditor balances need to be taken into account in the calculation.
We would prepare this information from the records of the company and carefully discuss it with the directors before a final decision is made.
Based on this information and our advice, you as a director, need to be reasonably satisfied that the company will be able to pay its debts within a 12 month period. It would then be necessary to pass directors and shareholders resolutions to appoint a Liquidator of the company. From the moment I have been appointed Liquidator my team will deal with all aspects of the winding up of the company. We will (if required):
– Liaise with creditors, and resolve any issues of creditor claims.
– Take steps to sell the equipment and plant.
– Commence collection of outstanding book debts.
– Deal with employee claims and so on.
Helping you in the Members Voluntary Liquidation MVL process
Most of all we will work with you to achieve the best outcome for all concerned, particularly creditors and shareholders. We realise that nobody knows the company’s business better than you and your input is invaluable to ensure the process is as efficient as possible. Once all the assets have been realised and the creditor claims agreed, creditor claims can be paid. If there are any surplus funds, these will be paid to the shareholders.
You may also find our recent article on Excessive Directors Remuneration And Expenses – Court Guidance interesting.