Members’ Voluntary Liquidation (MVL)

With a Members’ Voluntary Liquidation (MVL or Solvent Liquidation), shareholders put your solvent company into liquidation to unlock your capital. It can secure an orderly winding-up of a company, or a close down of a subsidiary, for which the shareholders no longer have any use.

The shareholders appoint a Liquidator. Then, a Statutory Declaration of Solvency is prepared. This states that the directors have conducted a full enquiry into company affairs and believe that it can repay its debts, with interest, within 12 months. The Liquidator realises the company assets, settles any creditor claims and distributes the remaining assets to shareholders.

Note that an MVL carries heavy tax implications.