Members Voluntary Liquidation
What is a Members Voluntary Liquidation (MVL)?
An MVL is a formal process used by solvent companies to wind up affairs in a tax-efficient manner. It is typically utilised in scenarios such as retirement of owners/directors, business closure or exit from markets, group reorganisation, or in the case of mergers/demergers.
Benefits of an MVL with Parker Andrews
MVL Process: Step by Step
- Step 01
- Step 02
- Step 03
- Step 04
- Step 05
- Step 06
- Step 07
Contact Parker Andrews for a free, no-obligation discussion about your requirements, including financial review and fee agreement.
Once agreed upon, we’ll send a letter outlining services and requirements, with further accounting and tax information gathered.
Meetings are set for a mutually convenient date to pass resolutions for the MVL.
Prepared by the directors, declaring the company can settle its debts within 12 months.
A board meeting to place the company into MVL, followed by a shareholders’ meeting to appoint a Liquidator.
Contacting banks, advertising the appointment, and notifying HMRC.
Initial distributions from company assets, with indemnity for unforeseen claims.
What is the difference between an MVL and striking-off?
An MVL is a formal Liquidation process with various legal protections, unlike the striking-off process which carries risks of potential claims against the dissolved company.
How quickly can distributions be made in an MVL?
Distributions can often be made quickly, sometimes within days, following the formal appointment.
Is an MVL suitable for my company?
If your company is solvent and looking for an efficient exit strategy, an MVL may be the ideal solution.
Considering a Members Voluntary Liquidation for your solvent company?
Contact Parker Andrews for expert guidance and a smooth MVL process. Get in touch with us to discuss how we can assist you in achieving a tax-efficient and orderly closure or restructuring of your business.
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