A Members Voluntary Liquidation (MVL) is the formal process taken to wind up the affairs of a solvent company.
A solvent company is one that has more assets than liabilities and can therefore pay off all its debts. This process involves directors, shareholders, and a licensed insolvency practitioner working together through the liquidation process and ensuring legal requirements are met. Whilst it may be possible to distribute funds to shareholders and have the company dissolved without an MVL, it is often beneficial to enter into an MVL to maximise tax advantages for the company and the shareholders
The company directors are responsible for issuing a declaration of solvency, which confirms that the company can settle its debts within a…