Members voluntary liquidation (MVL) enables a company to be closed down, its assets realised and its creditors paid, with the residual funds being distributed as capital to its shareholders in a tax-efficient manner.
Shareholders appoint a liquidator, requiring 75% approval, and a declaration of solvency is prepared by the directors, which states that the company can pay its liabilities in full, plus statutory interest, within a 12-month period.
The tax implications of an MVL need to be fully understood prior to the solvent liquidation being commenced in order to maximise the shareholders’ return.
Our expert insolvency practitioners are here to assist you with advice surrounding the MVL process at a free, no-obligation meeting.
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.
When taking appointments, they are data controllers of personal data as defined by the Data Protection Act 1998 and the General Data Protection Regulation 2018. Smith Cooper will act as data processor on their instructions. Personal data will be kept secure and processed only for matters relating to the appointments that they take. For further details, see the firm’s privacy policy.
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