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 a 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.

For further information on Members Voluntary Liquidations in Kent, please contact us.