Q&As

Are bodies governed by the Co-operative and Community Benefit Societies Act 2014 able to use the members’ voluntary liquidation procedure set out in the Insolvency Act 1986 and the Insolvency (England and Wales) Rules 2016?

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Published on LexisPSL on 05/03/2021

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • Are bodies governed by the Co-operative and Community Benefit Societies Act 2014 able to use the members’ voluntary liquidation procedure set out in the Insolvency Act 1986 and the Insolvency (England and Wales) Rules 2016?
  • Compulsory and voluntary liquidation
  • The Insolvency (England and Wales) Rules 2016

Members' voluntary liquidation (MVL) is a procedure for winding-up an entity on a solvent basis.

If the directors of a company make a declaration of solvency under section 89 of the Insolvency Act 1986 (IA 1986), the company can enter into a MVL. In either case, the resolution must be put to a meeting of the members for consideration. If it is passed, it must be advertised within 14 days in the London Gazette. The penalty for failure to advertise is a fine for the company and every officer in default (IA 1986, s 85). Before a company passes a resolution for voluntary winding up, it must give written notice of the resolution to the holder of any qualifying floating charge (IA 1986, s 84(2A)).

For further information, see: Members' voluntary liquida

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