• About Us
• Meet The Team
• Factoring Services
• Insolvency Services
• CVA
• Pre Pack

Obtaining Voluntary Liquidation Advice

Contact the UK’s Leading Experts in Business Recovery Today...

Although there are two types of voluntary liquidation under UK law, Creditors' and Members Voluntary Liquidation, it is important to seek voluntary liquidation advice either from an Insolvency Practitioner or directly from R3. The first thing to understand is that there are some vital differences between Members' Voluntary Liquidation (MVL) and Creditors' Voluntary Liquidation (CVL). Because of this, it is important to have a solid understanding of the voluntary liquidation definition of each type. For instance, one of the inherent differences is in who gets to appoint the liquidator. Under CVL, the creditor/s will choose the liquidator, whereas in an MVL the director or members (shareholders) get to appoint the liquidator.

Other things which may come into question might be pertaining to voluntary liquidation employees' rights. Do they have any? And if so, what are they? Keep in mind that Voluntary Liquidation is a resolution adopted by the members but will be legally binding. Although it is entered into voluntarily, the company will no longer be under the control of the director/board and will be placed in the hands of the liquidator. From this point forward, any and all assets will be under the control of the liquidator/s and the powers of the director/board will cease. All assets will be liquidated during a 12 month period in which voluntary liquidation creditors will be paid from the proceeds of capital realised during that time.

Whether the company is solvent or not during the weeks preceding voluntary liquidation, an Insolvency Practitioner would be the best person to address in terms of questions or concerns. You may want to know if it is possible to file a voluntary liquidation limited company resolution in the same way as you would a corporate resolution, or if the procedure is totally different. Because UK laws are quite precise involving liquidation procedures, it is in your best interest to seek the advice of a professional IP prior to even entertaining the idea.

Find out more...