What process needs to take place before placing the company into MVL?
Produced in partnership with Robert Smailes of Leonard Curtis Business Solutions Group & Simon Hunter of Three Stone
What process needs to take place before placing the company into MVL?

The following Restructuring & Insolvency practice note produced in partnership with Robert Smailes of Leonard Curtis Business Solutions Group & Simon Hunter of Three Stone provides comprehensive and up to date legal information covering:

  • What process needs to take place before placing the company into MVL?

This content is affected by the coronavirus (COVID-19) pandemic. For further details, see: Coronavirus (COVID-19) toolkit. For related news, guidance and other resources to assist practitioners working on restructuring and insolvency matters, see: Coronavirus (COVID-19)—Restructuring & Insolvency—overview.

A members’ voluntary liquidation (MVL) occurs when a company is solvent and the company wants an orderly wind-up of the company. For more detail, see Practice Note: What is a members' voluntary liquidation (MVL) and where/when is it typically used?. See also Practice Note: MVL—the process and documents for the appointment of a liquidator.

The process is initially instigated at a board meeting where the directors have formed the opinion that the company will be able to pay its debts in full, together with interest at the official rate within the period not exceeding 12 months from the commencement of the winding up.

A company may be wound up voluntarily under the control of its members only if a Declaration of Solvency and a statement of the company's assets and liabilities (and the other matters set out in IR 2016, SI 2016/1024, r 5.1) have been made by a majority of the company’s directors, within the period of five weeks immediately preceding the passing of a resolution to wind

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