Creditors’ Voluntary Liquidation (CVL)
This occurs where the shareholders, usually at the directors’ request, decide to put a company into liquidation because it is insolvent. Either the company cannot pay its debts as they fall due or it has more liabilities than assets.
The purpose of the liquidation is to appoint a responsible person who has a duty to collect the company’s assets and distribute them to its creditors in accordance with the law. That person is the liquidator who must be a licensed insolvency practitioner.
Members’ Voluntary Liquidation (MVL)
A solvent liquidation is known as a Members’ Voluntary Liquidation in which a liquidator is appointed by the shareholders and the company’s assets are sufficient to settle all its debts with twelve months.
MVLs are generally used, in the case of owner managed businesses, to enable the shareholders to realise their interest in the company.
The company’s tax position can be critical and our experts can advise on the alternatives of liquidation or dissolution and any crucial timing decisions.
My-MVL is an online application process that saves both time and money by streamlining the whole solvent liquidation process. It is a white label software solution created specifically for accountants and tax advisors.
- Extension of service lines available to the client
- Reflects the value of the work undertaken e.g. tax advice, MVL preparation and information collation
- Control of the overall fee level for the MVL and knowledge that the insolvency process is covered by a simple fixed fee for using the software
Benefits to the client include:
- Seamless online documentation journey
- Ease of use as the MVL process can be undertaken remotely
- Tax advice, cessation of trade, accounts and tax computations all included within the liquidation process
A compulsory liquidation is usually where a creditor has petitioned the Court for the winding up of the company. The official receiver becomes the liquidator but normally appoints an insolvency practitioner to carry out the liquidation. This is also known as a ‘compulsory winding up’.
As part of our complete rescue and recovery solution, a comprehensive asset protection service can be mobilised immediately to effectively manage and secure company assets. Read more.
Our team is highly skilled in insolvency, legal and collections’ environments. These skills mean LC Receivables will be one of the few collection operations that understand not only how to collect a debt in a distressed position and also how to manage an entire ledger to ensure any risks that may dissipate the asset value are mitigated quickly. Read more.