A CVL is a Creditors Voluntary Liquidation and an MVL is a Members Voluntary Liquidation. A CVL is where the company is insolvent and can not repay its creditors. The directors insitgae the process, but the creditors approve it. An MVL is where there is a solvent company, The shareholders (also known as members) wish to extract the remaining value in the company in the most tax efficient way and formally wind up the company. It is often used when a business comes to its natural end of life and where a particular project has ended for which the company was originally formed. LiquidateMyBusiness.com offers both CVLs and MVLs at great prices and service. Get a low-cost quote now to being the process.

The liquidation process is summarised as follows; 1.The directors pass a resolution to liquidate the company / wind-up the company and call a shareholders meeting (usually at a minimum of 14 days’ notice, but this can be shortened with agreement of 90% of the shareholders). The company will usually cease to trade at this point. 2. A report is provided to creditors outlining the events leading to the insolvency of the company and providing a Statement of Affairs (effectively as balance sheet, showing the assets and liabilities of the company). 3. A virtual creditors’ meeting is also called (usually a telephone call to be held straight after the shareholders’ meeting) to approve the resolution to wind-up the company and ratify the appointment of a liquidator. 4. When the liquidator is appointed, the powers of the directors cease immediately. 5. The liquidator will seek to sell the company’s assets, if any, for the benefit of the liquidation. 6. After payment of the costs of the liquidation, any remaining funds are distributed to the creditors of the company, whose claims have been agreed by the liquidator. 7. Upon completion of the liquidation process and having finalised all their statutory duties, the liquidator will issue their final report and close the liquidation. 8. The company will be dissolved a few months later and removed from the Register at Companies House.

The MVL liquidation process is summarised as follows; 1.The directors pass a resolution to liquidate the company / wind-up the company and call a shareholders meeting (at a minimum of 14 days’ notice, but this can be shortened with agreement of 90% of the shareholders). The company will usually cease to trade at this point if it hasn’t already. 2. The Directors swear a Declaration of Solvency in front of a solicitor (effectively as balance sheet, showing the assets and liabilities of the company). 3. A members’ meeting is called to approve the resolution to wind-up the company and appoint a liquidator. 4. When the liquidator is appointed, the powers of the directors cease immediately. 5. The liquidator will seek to sell the company’s assets, if any, for the benefit of the liquidation estate. 6. After payment of the costs of the liquidation and remaining creditors (including any final Corporation Tax due), any remaining funds are distributed to the members of the company, who have provided signed indemnities. 7. Upon completion of the liquidation process and having finalised all their statutory duties, the liquidator will issue their final account and close the liquidation. 8. The company will be dissolved 3 months later and removed from the Register at Companies House.

The cost of liquidation will depend on a number of factors, including the level of the assets, liabilities and employee redundancies, if any. Our fees are one of the lowest in the UK and start from as little as £1,750 including disbursements, plus VAT. This compares to the average of over £5,000 plus VAT charged by other firms. This is thanks to our great streamlined processes and online system. Use our really quick online quote system to find out now. If the level of assets allow, our fees can be paid out of the company’s assets and not by you personally.