MVL Steps

A Members' Voluntary Liquidation, or "MVL", is a legal process whereby a solvent company is wound up and dissolved. The primary objectives are to realise and to distribute the surplus assets of the company once all outstanding matters have been resolved and any remaining creditor claims settled. We have a portfolio of products to suit all types of MVL's, with prices starting from as low as £850.

Jeremy Frost

Phase 1 – Initial Assessment

  • Is the company surplus to requirements?
  • Is the company solvent?
  • Is MVL the appropriate mechanism?

Phase 2 – Pre-Liquidation Review

  • Wind down trading operations as necessary and review company's affairs
  • Consider retention of company name
  • Restore solvency if applicable
  • Identify actual and contingent liabilities
  • Discuss need for an indemnity
  • Review statutory affairs of company
  • Possible tax consequences of Liquidation to be discussed with tax advisors
  • Declare any pre-Liquidation dividends, subject to above tax advice
  • Finalise and formalise any necessary pre-Liquidation transactions
  • Prepare statutory Declaration of Solvency

Phase 3 – Initiation of Liquidation

  • Convene directors' meeting
  • Review management accounts and confirm solvency of company
  • Sign & certify statutory Declaration of Solvency (valid five weeks only)
  • Convene Extraordinary General Meeting of shareholders (EGM), or propose written resolutions

Phase 4 – Commencement of Liquidation

  • EGM or written resolution to wind up the company
  • Pass winding up and ancillary resolutions
  • Certificate of appointment of Liquidator

Phase 5 – Post Liquidation

  • Statutory filing and advertising within prescribed time limits
  • Notification of the Liquidator's appointment to relevant authorities and interested parties
  • Collection of books and records and company seal
  • Closure of company bank account(s), open new Liquidation bank account(s) where applicable
  • Complete asset realisation where necessary
  • Agree and settle creditors' claims (with statutory interest)
  • Ensure Corporation Tax, PAYE & NIC and VAT compliance concluded
  • Obtain tax clearance
  • File Liquidator's receipts and payments accounts
  • Distribute surplus assets to shareholders

Phase 6 – Close of Liquidation

  • Submit final report and Liquidator's final receipts and payments account to shareholders
  • Hold final meeting and obtain release of Liquidator

Phase 7 – Dissolution

  • Company dissolved three months from the date of filing of Liquidator's final return
  • Disposal of books and records (12 months after dissolution)

Don't hesitate to call our offices on 0845 260 0101 to discuss your MVL requirements. We have a product to suit all limited companies and advice expertise which is never compromised.