When liquidating a company, using a cost-effective method is paramount. For solvent companies, it’s in the best interests of directors to be efficient in order to retain as much of their profits as possible. For insolvent companies, cost-effectiveness means paying off a larger portion of the company’s debt. Clearly, choosing the most cost-efficient method of…
Read MoreA Members’ Voluntary Liquidation (MVL) is a procedure used to liquidate and close a solvent company. This is done for a variety of reasons; directors might find their company not profitable enough to continue operating, want to pursue new ventures, take up a PAYE-role (due to the IR35 / off-payroll rules) or retire. An MVL…
Read MoreIt is not uncommon for a solvent company to close for one reason or another. A company’s directors may want to retire, move on to a new project, or the company may simply not be profitable enough to continue operations. A popular solution for directors considering this path is a Members’ Voluntary Liquidation (MVL). During…
Read MoreWhen a company decides to close using a Members’ Voluntary Liquidation (MVL), directors will usually file a signed indemnity during the procedure. Essentially, this allows the company to distribute funds amongst its shareholders without waiting for the MVL to follow the usual channels that allow for the release of funds. As this can take months,…
Read MoreWhen liquidating a company, your options are contingent upon your company’s financial state. A Creditors’ Voluntary Liquidation (CVL) and, potentially business rescue, is often your best option if your company is insolvent (i.e. can’t pay its debts). However, for a solvent company a Members’ Voluntary Liquidation (MVL) is often the most beneficial solution. An MVL…
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