Members Voluntary Liquidations

Corporate Insolvency

A solvent liquidation, or members' voluntary liquidation (“MVL”), enables the shareholders to put a solvent company into liquidation. A MVL can be used:

• to secure an orderly winding up of a company
• by shareholders wishing to unlock their capital
• to close down a subsidiary, within a group of companies, which has outlived it’s usefulness
• as part of a company’s restructuring for the purpose of the sale of part of the business

The MVL is under the direction of the shareholders who appoint a liquidator.

A MVL procedure requires a Statutory Declaration of Solvency which states the directors have conducted a full enquiry of the company affairs and are of the opinion it is able to repay it’s 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.