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

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. References to exit day in many Brexit SIs are to be read as reference to IP completion day (Implementation Period completion day, defined in clause 39 as 31 December 2020 at 11.00 pm) (unless that provision is expressly disapplied by the SI in question). For further details, see News Analysis: Brexit—impact of the Withdrawal Agreement and European Union (Withdrawal Agreement) Act 2020 for R&I lawyers and Brexit Bulletin—key updates, research tips and resources. 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: