The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:
This Practice Note is a summary of the key points relating to a members' voluntary liquidation (MVL) from a dispute resolution perspective.
A MVL is a process by which the company, through the resolution of its members, decides to end the activities of the company and move towards the eventual dissolution of the company. Throughout this process a licensed insolvency practitioner, who is authorised by a recognised professional body or the Secretary of State, must be appointed as liquidator over the company.
A MVL is appropriate only where the company is solvent. If the company is insolvent a different method must be used, such as a creditors' voluntary liquidation (CVL) or compulsory liquidation. For further reading on these processes, see Practice Notes:
Corporate insolvency for dispute resolution practitioners: creditors' voluntary liquidation
Corporate insolvency for dispute resolution practitioners: compulsory liquidation
A 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 but wish to get back their investment. For more information on the circumstances in which a MVL might be used, see Practice Note: What is a members' voluntary liquidation (MVL) and where/when is it typically used?
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