Members Voluntary Liquidation (MVL) - Explained

A Members' Voluntary Liquidation (MVL) is a voluntary procedure to wind up the affairs of a solvent company.

 

Solvent, what does this mean?

A company is capable of paying its liabilities in full plus statutory interest plus the costs involved in winding up, within 12 months.

When is the MVL procedure appropriate?

When a solvent company has come to the end of its useful life and needs to be wound up. For example:-

  • Shareholders want to retire and have a property within the company which they want to transfer into their personal names. i.e. a distribution in specie.
  • Rationalisation of a group of companies involving transfer of assets, write off of inter-company loans and winding-up of subsidiaries.

 

The Next Step

The options for a financially distressed business need to be very carefully considered. Simply forward your details on our Contact Form and we will contact you. Alternatively ring us on our FREE ADVICE LINE 0800 781 0990.

 

All debt solutions should be very carefully considered. Fees will be charged if a solution is taken in order for us to advise and administer the most appropriate action - all fees will be outlined during your consultation. Retained payment may place you further into arrears. The Business Debt Advisor complies with the Consumer Credit Act and you have the right to a cooling off period of 7 days. It is likely that your ability to obtain further credit in the short term will be affected and this may also be the case over the medium to long term.