The following Restructuring & Insolvency guidance note Produced in partnership with Tim Cooper of Addleshaw Goddard LLP provides comprehensive and up to date legal information covering:
STOP PRESS: The Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018, SI 2018/1082 and Insolvency (Scotland) (Receivership and Winding up) Rules 2018, SSI 2018/347 come into force on 6 April 2019. The content of this Practice Note is under review and will be updated as appropriate shortly. In the meantime, for further information on the changes, see:
Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018, LNB News 15/10/2018 111
Insolvency (Scotland) (Receivership and Winding up) Rules 2018, LNB News 15/11/2018 7
New insolvency rules for Scotland—what the changes will mean
New changes under the Insolvency (Scotland) (Receivership and Winding up) Rules 2018
A creditors' voluntary liquidation (CVL) in Scotland is a voluntary formal insolvency process, for the purpose of winding-up the affairs of an insolvent company (or limited liability partnership (LLP)) registered in Scotland, as an alternative to a winding-up by the court.
Save where the company is in administration and is exiting that process via a CVL, the process for an insolvent voluntary liquidation is initiated, in practice, by the directors of the company. The directors must conclude that the company is insolvent and unable to avoid liquidation (and, usually, that no other better route, such as administration, is available). Legally, CVLs formally commence upon the passing of a resolution for liquidation by the shareholders, but to get to
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