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How Long Does a Member's Voluntary Liquidation Process Take

An MVL, or Memberu2019s Voluntary Liquidation, is similar to a CVL in that it is a formal liquidation process but it applies to a solvent company. The directors of the company that has more than u00a325,000 for distribution to shareholders will have made the decision to liquidate, or close, the company for a variety of reasons, including:<br> <br>Retirement of director(s).<br>The company is no longer required.<br>Dividing the company or transferring<br>Restructuring<br>Tax purposes.<br>

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How Long Does a Member's Voluntary Liquidation Process Take

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  1. How Long Does a Member's Voluntary Liquidation Process Take? What is Liquidation? There are two core types of liquidation; voluntary and compulsory. Which one you choose depends on whether you decide to go into liquidation yourself, or are forced into it by your creditors. Either way, it’s a very important process that will result in the dissolution of your company. You’ll stop trading, your employees will be made redundant and your business assets will be sold to pay creditors. What is an MVL? An MVL, or Member’s Voluntary Liquidation, is similar to a CVL in that it is a formal liquidation process but it applies to a solvent company. The directors of the company that has more than £25,000 for distribution to shareholders will have made the decision to liquidate, or close, the company for a variety of reasons, including: Retirement of director(s). The company is no longer required. Dividing the company or transferring Restructuring Tax purposes. With an MVL process, any creditor claims that are settled during the liquidation process are entitled to statutory interest on top of the amount they are owed. This is applied from the date the MVL process started and is currently set at 8%. Although an MVL is a formal liquidation process, it is a clear and concise way to close a solvent business that is no longer needed, has reached the end of its useful life or is due to retirement of the director(s).

  2. Liquidation solicitors, like Simple Liquidation, are a team of licensed insolvency practitioners who are experienced professionals in handling formal company liquidation processes. While going through the liquidation process, the most common question arises in every mind is how long does a member's liquidation process take? Today we will answer this question, It totally depends on the size of the company, the number of shareholders, and the value of assets. As the Declaration of Solvency declares that the company is able to pay all its debts in full within 12 months, and MVL will not take longer than this period. In general, most Members’ Voluntary Liquidation processes take 3-6 months to finalise and cease to exist on the Companies House Register.

  3. If you are considering closing a solvent company using a Members’ Voluntary Liquidation process, contact Simple Liquidation for assistance. We have Licensed Insolvency Practitioners to help you in these difficult times. For more information on how our professional insolvency practitioners may be able to help your business, contact us today at 0800 246 5895.

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