There are two forms of company liquidation, voluntary and compulsory. A voluntary procedure is either a Creditors’ Voluntary Liquidation (CVL) or a Members’ Voluntary Liquidation (MVL), which is initiated by shareholders and directors.

Voluntary Liquidations

CVL

A Creditors’ Voluntary Liquidation (CVL) is suitable for insolvent companies and involves the dissolution and redistribution of assets to the creditors. It allows directors to write off unsecured debt which is not personally guaranteed.

MVL

A Members’ Voluntary Liquidation (MVL) is used to liquidate solvent companies as part of an exit strategy. The directors must sign a declaration to confirm there are no remaining creditors before doing so. As a result, they can then extract cash and assets from the company in a tax efficient way.

Compulsory Liquidations

A Compulsory Liquidation is initiated by an unpaid creditor issuing a winding up order and seeking to force the company closure. If you act quickly and seek an Insolvency Practitioner’s advice there are solutions which can avoid the forceable closure of your business.

If you are not seeking to liquidate your company there are suitable alternatives available if yur company is viable but in financial difficulty. Such alternatives include a Company Voluntary Arrangement or Company Administration.

Our approach to company liquidation

Our approach to liquidations means that we offer close support to the directors of your organisation, whilst also optimising return for creditors. We ensure insolvency costs do not erode creditors share. We reduce the likelihood that guarantees are called upon and ensure the prompt payment of dividends.

If you are thinking of liquidating your company or have received a winding up order, then contact one of our trusted advisors to ensure it is the best route available.