Members' Voluntary Liquidation
A Members' Voluntary Liquidation (MVL) enables shareholders to put a solvent company into liquidation in order to unlock their capital. It can be used to secure an orderly winding up of a company or to close down a subsidiary (within a group of companies) that has outlived its usefulness. Shareholders appoint a Liquidator. The process ends the life of the company, leaving no outstanding matters and provides a potentially tax efficient exit route for shareholders.
This would be a good option for your company if it has come to the end of its useful life and needs to be wound up; there is a breakdown of communication between Directors; or if you are retiring/moving on and would like to close the company.
With this type of Liquidation, the Director(s) must sign a Declaration of Solvency to confirm that the company is Solvent – that the company can pay all of its liabilities in full, plus statutory interest, within 12 months of a declaration of solvency being sworn.