If you’d like to close down your company in a safe and cost-effective way, a Members’ Voluntary Liquidation could be a suitable option.
What is an MVL?
A Members’ Voluntary Liquidation (MVL) is a formal process that enables a solvent company to close down without excessive costs and while staying within legal guidelines.
Under what circumstances are MVLs most appropriate?
There are many reasons why company directors opt for an MVL. Often it’s because the director(s) are approaching retirement and there’s no one suitable to take over the company. There are also circumstances where a profitable company reaches the end of its useful life and wishes to close down in a cost-effective way.
What happens to my money during the MVL process?
The exact process can vary depending on the Insolvency Practitioner you appoint.
Here at Clarke Bell, our low cost “£995 MVL” process is as follows:
The company bank account will be closed and the funds previously held in this account will be forwarded on to Clarke Bell for the Liquidation’s estate.
The funds are held in a client-specific, interest-bearing account with Barclays, one of the world’s leading banks.
When it comes to making the distribution to shareholders, our procedures ensure that the funds are transferred to the correct shareholder bank accounts.
Clarke Bell have been trading for over 25 years and are regulated by the ICAEW – so clients can be assured that the service we provide is compliant and professional.
In addition, we have already safely and securely distributed over £250 million cash, in more than 1,800 MVLs.
As a further assurance to clients, as part of the MVL process (with any Insolvency Practitioner) a compulsory bond needs to be taken out. This bond provides the directors/shareholders with security while the funds are under the control of Clarke Bell. (The bond fee is dependent on the amount of assets the company has.)
If you’d like to appoint Clarke Bell as your Insolvency Practitioner for your MVL, just get in touch with our team today.