Q&As

Can voluntary liquidation be used, so long as a company is solvent, to bring a lease liability to an end by disclaimer, without the landlord having any recourse for its lost income? By way of example, could a commercial tenant (say, a retailer) with ten years left of its lease to run, deciding that it wants to close that shop, simply go into voluntary liquidation to pay off its current debts and leave the landlord, who thought he had a tenant's rental income stream for the next ten years, with an empty unit?

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Published by a LexisNexis Restructuring & Insolvency expert
Published on: 21 November 2017
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Member’s Voluntary liquidation (MVL) is a kind of voluntary liquidation where the company is solvent and the members retain the majority of the control. An MVL is typically used where a solvent company has served its purpose and its members no longer wish to retain it as a corporate entity. It is also used where members wish to get back their investment into a solvent company. See Practice Note: What is a members’ voluntary liquidation and when is it typically used? An MVL can be used where the

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United Kingdom
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Key definition:
Voluntary liquidation definition
What does Voluntary liquidation mean?

liquidation not involving the court, either members voluntary liquidation (MVL) for solvent companies, or creditors voluntary liquidation (CVL) for insolvent companies.

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