The following Environment guidance note provides comprehensive and up to date legal information covering:
Voluntary liquidation or winding-up is a process in 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. A members' voluntary liquidation, commonly referred to as an MVL, is appropriate only where the company is solvent—see below for what this means in this context. If the company is insolvent, a creditors' voluntary liquidation (CVL or compulsory liquidation) must take place. For more on creditors voluntary liquidation see Practice Note: Insolvency matters and environmental issues—creditors’ voluntary liquidation (CVL).
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. For more information on where an MVL applies see Practice Note: What is a members' voluntary liquidation (MVL) and where/when is it typically used?
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 company may be wound up voluntarily under the control of its members only if a 'Declaration of Solvency' comprising a statement of its assets and
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