Scotland: members’ voluntary liquidation—application of Part 3 of the Insolvency (Scotland) Receivership and Winding) Up Rules 2018
Produced in partnership with Tim Cooper of Addleshaw Goddard and Eileen Margaret Maclean of Insolvency Support Services
Scotland: members’ voluntary liquidation—application of Part 3 of the Insolvency (Scotland) Receivership and Winding) Up Rules 2018

The following Restructuring & Insolvency practice note produced in partnership with Tim Cooper of Addleshaw Goddard and Eileen Margaret Maclean of Insolvency Support Services provides comprehensive and up to date legal information covering:

  • Scotland: members’ voluntary liquidation—application of Part 3 of the Insolvency (Scotland) Receivership and Winding) Up Rules 2018
  • The Insolvency (Scotland) (Receivership and Winding up) Rules 2018
  • What is an MVL?
  • Commencement
  • Statutory declaration of solvency
  • Appointment
  • Appointment by the company
  • Meetings in members’ voluntary winding up of authorised deposit-takers
  • Appointment by the court
  • Resignation, removal and vacation
  • More...

Scotland: members’ voluntary liquidation—application of Part 3 of the Insolvency (Scotland) Receivership and Winding) Up Rules 2018

The Insolvency (Scotland) (Receivership and Winding up) Rules 2018

The Insolvency (Scotland) (Receivership and Winding up) Rules 2018, SSI 2018/347 (ISRWR 2018) were laid before the Scottish Parliament on 14 November 2018 and are in force from 6 April 2019. Consequently the ISRWR 2018 affected the process for Members’ Voluntary Liquidations (MVLs) in Scotland. These changes are reflected in Practice Note: The Insolvency (Scotland) (Receivership and Winding up) Rules 2018—members’ voluntary winding-up.

This Practice Note therefore concerns the applicable law, procedure and practice relating to Scottish MVLs in force from 6 April 2019 onwards as set out in Part 3.

What is an MVL?

An MVL is a process by which the members of the company pass a special resolution in order to end its business activities and appoint a liquidator to distribute the capital of the company to its shareholders, leading ultimately to the dissolution of the company. It is appropriate in solvent liquidations, and must be used where the capital to be returned to shareholders exceeds £25,000. It will ordinarily be used where a solvent company has served its purpose and there is no good commercial reason to keep it trading and/or the shareholders wish to realise their investment. Alternatively, an MVL may be used for tax planning purposes, or

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