Creditors Voluntary Liquidation (CVL)
This is the most common form of liquidation in the UK. It is usually the last resort for a company as it is insolvent and cannot continue trading.
An Insolvency Practitioner will wind up the company after approval from company members and creditors who also formally vote for the appointment of a liquidator.
If the company had not already done so, it would now cease to trade. All assets of the company including any book debts would be realised and proceeds of these would fund the cost of the liquidation. Any excess funds would be available as a dividend to creditors in the order of priority.
