Members' Voluntary Liquidation is only available to solvent companies. Directors choose this liquidation option as it includes healthy tax benefits for the shareholder funds during distribution. The end of a solvent company is typically down to either; retirement, the family business has run its course, shareholders want to pull out their investment, or restructuring reasons.
Our fees for a Members’ Voluntary Liquidation start at £2,000 + vat + disbursements.
Call to speak to one of our insolvency practitioners today.
The Members' Voluntary Liquidation is the formal liquidation process for solvent companies to use when they want to close down their company.
This process is most suitable for companies who have over £25,000 worth of shares that need extracting from the company as they will receive healthier tax benefits then if they just took the funds out themselves.
To discuss this option in further detail please contact us today. We have helped 100's of solvent companies with this process.
The main benefits of a Members' Voluntary Liquidation lie in the tax advantages that you receive due to the shares being classed as capital receipts.
There is also an opportunity to apply for Entrepreneurs Relief which again will lower the amount of tax you will have to pay.
These advantages relate to all shareholder funds that need extracting from the company upon closure.
To discuss further please contact us for more information.
If you are wanting to restructure your solvent company then you can use a Members' Voluntary Liquidation to help close down subsidiaries.
S.110 of the Insolvency Act 1986 covers the restructuring option via a liquidation route.
It is a good route to follow if you have multiple office locations but are planning on closing some.
Please contact us today to discuss in more detail.
The process of a Members' Voluntary Liquidation is usually a straight forward one year process, where an Insolvency Practitioner is appointed to perform the process.
The beginning of an MVL must start with a Directors meeting whereby they must all agree to the solvent liquidation process. They must next sign a Declaration of Solvency and swear it in front of a solicitor. This then becomes a legal document and if found to be un-true then legal action can be taken against the directors.
To discuss the rest of the process with a Licensed Insolvency Practitioner, please call us today.
The appointed Insolvency Practitioner has three main duties during a Members' Voluntary Liquidation.
They are to sell and disperse of the company's assets, to present a progress report at the end of the process and then finally to send the report to Companies House whereby they will remove the company off of their register.
We are a firm of 4 Insolvency Practitioners who can all be appointed on this solvent liquidation process. Please call us today for a free initial consultation.
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