Creditors’ voluntary liquidation (CVLs) is a process available to directors when a company is insolvent and there is no option other than to cease trading.
The assets are realised and sold, employees are made redundant, and creditors are paid a dividend where possible.
A company is insolvent if:
i) its liabilities are greater than its assets, or
ii) it cannot meet its debts as and when they fall due
The directors resolve that a shareholders’ meeting be held at which the company is placed into liquidation with 75% shareholder approval, with the creditors having the final choice on the nomination of a liquidator.
Our expert insolvency practitioners are happy to assist and advise you on your affairs at a free, no-obligation meeting.
Watch our video below where Partner and licensed Insolvency Practitioner Michael Roome explains more about creditors voluntary liquidations. This video is part of our wider Dealing with Company Debt video series, which can be viewed on our YouTube channel.
Dean Nelson, Nicholas Lee, Andrew Stevens and Michael Roome are all licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales. They are bound by the insolvency code of ethics, which can be found here.
When acting as receivers, administrative receivers or administrators, they act as agents only, without personal liability, and when acting as administrators, the affairs, business and property of the company are being managed by them.