Creditors’ voluntary liquidation of a Limited Liability Partnership
Produced in partnership with Andy Taylor of Isadore Goldman Limited and Emma Knight and Michael Smith of Three Stone
Creditors’ voluntary liquidation of a Limited Liability Partnership

The following Restructuring & Insolvency guidance note Produced in partnership with Andy Taylor of Isadore Goldman Limited and Emma Knight and Michael Smith of Three Stone provides comprehensive and up to date legal information covering:

  • Creditors’ voluntary liquidation of a Limited Liability Partnership
  • Brexit impact
  • Applicable legislation
  • Contrast with conventional partnerships
  • Putting an LLP into CVL
  • LLP determines that it is to be wound up voluntarily
  • Moving from administration to CVL
  • Powers of the liquidator
  • Antecedent transactions
  • Obligations and liabilities of members

This note explains how a Limited Liability Partnership (LLP) can be placed into creditors’ voluntary liquidation (CVL), what powers the liquidator has, and what the obligations of members are. This Practice Note does not apply to Limited Partnerships, for which, see Practice Note: Limited partnerships and insolvency—key principles.

Brexit impact

This Practice Note is impacted by the decision of the UK on 23 June 2016 to leave the European Union. For details of the impact on the Recast Regulation on Insolvency, see Practice Note: Brexit—impact on Recast Regulation on Insolvency.

We will continue to monitor developments in this respect and throughout the negotiation period and beyond. In the meantime, for further reading on the impact of Brexit and related issues facing lawyers in this area, see Practice Note: Brexit—worst case scenarios for R&I lawyers.

For updates and details of other Brexit related developments and legislation, see Practice Note: Brexit SI tracker for R&I practitioners. For access to related documents and further reading on Brexit, see: Brexit toolkit.

Applicable legislation

The Limited Liability Partnerships Act 2000 (LLPA 2000) introduced LLPs and must be read in conjunction with the Limited Liability Partnerships Regulations 2001 (LLPR 2001), SI 2001/1090. The LLPR 2001 apply the Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales) Rules 2016, SI 2016/1024, to LLPs.

The IA 1986 only