Members Voluntary Liquidation
This is the liquidation of a company which is solvent, i.e. asset rich. It may take place due to a breakdown in the relationship between directors and/or members or perhaps to accommodate a retirement of a member in a tax efficient way.
It provides a greater degree of certainty than a striking-off and can be a useful tool in re-structuring. The Insolvency Practitioner will manage the whole procedure. Ongoing liability only lasts until dissolution, compared to twenty years in a striking-off.
All assets of the company including 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, payable in the order of priority.
A dividend would be paid to members after the unsecured creditors had been paid in full plus interest.
