Members' voluntary liquidation

Copyright © 2025 LexisNexis

What is an MVL?

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. If the company is insolvent, a creditors’ voluntary liquidation (CVL) or compulsory liquidation must take place. For further information on CVL and compulsory liquidation, see:

  1. •

    Creditors' voluntary liquidation (CVL)—overview

  2. •

    Compulsory liquidation—overview

A 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 in a solvent company. For further information on when a MVL is appropriate, see Practice Notes:

  1. •

    Liquidation—an introductory guide

  2. •

    What is a members’ voluntary liquidation and when is it typically used?

For a discussion of MVL versus striking off, see Practice Note: MVL versus striking off.

Statutory declaration of solvency

A company enters

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Restructuring & Insolvency News

Insolvency Service reports suspended sentence for director over £150,000 BBL fraud

The Insolvency Service has reported that Zahid Afzal, director of Phone Bits Ltd and Phones Onn Ltd, received a two-year suspended sentence for fraudulently obtaining £150,000 in coronavirus bounce back loans (BBL). Afzal had already received legitimate loans totalling £52,500 when he applied for three additional £50,000 loans between May and November 2020. The Insolvency Service is pursuing recovery of the fraudulently obtained funds under the Proceeds of Crime Act 2002. Afzal was charged under the Fraud Act 2006 after transferring the majority of the fraudulent loans to personal accounts.

Restructuring & Insolvency weekly highlights—12 June 2025

This week's edition of Restructuring & Insolvency weekly highlights includes: the Court of Appeal’s judgment on treatment of secured debt under the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Moratorium) (England and Wales) Regulations 2020 (Forbes v Interbay Funding Ltd; Forbes and Seculink Ltd), the Insolvency Service’s 2024 practitioner regulation review, plus a round-up of other news and cases for restructuring and insolvency.

Council endorses Directive to harmonise EU insolvency laws and enhance cross-border investment

The Council of the EU has announced its endorsement of the EU Directive aimed at harmonising key aspects of insolvency law across member states. This initiative is designed to align national insolvency regimes, thereby reducing legal divergences that currently deter foreign and cross-border investment. Notably, the Directive introduces a pre-pack mechanism accessible in all member states, enabling the pre-negotiation and swift execution of business sales during insolvency, along with provisions for the automatic transfer of essential executory contracts under controlled safeguards. In addition, the directive mandates the establishment of creditors’ committees in certain cases to enhance creditor participation, with harmonised rules regarding their composition, rights, duties, and liability—with the option for member states to confine this requirement to large enterprises. Further measures agreed in December 2024 include protections for the insolvency estate, clarified directors' duties regarding insolvency proceedings, and strengthened transparency obligations. The Council now intends to negotiate with the European Parliament to finalise these provisions into law.

Insolvency Service publishes May 2025 enforcement outcomes management information

The Insolvency Service has updated its enforcement outcomes management information for May 2025. The data shows that there were 89 director disqualifications and 8 bankruptcy and debt relief restrictions.

View Restructuring & Insolvency by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

What is a statutory declaration of solvency and what happens if a false declaration of solvency is made?

What is a statutory declaration of solvency and what happens if a false declaration of solvency is made?Statutory declaration of solvencyA company enters voluntary liquidation when its members vote to do so by a special resolution. For further information, see Practice Note: What is a members’

Is it possible to serve a statutory demand abroad and, if so, how enforceable is it?

Is it possible to serve a statutory demand abroad and, if so, how enforceable is it?A statutory demand is a demand for payment of a debt due to a creditor by a debtor. Where a statutory demand is served on a company and the debt is neither paid, secured or compounded for within 21 days, then the

Can you wind-up a company when the debt is disputed?

Can you wind-up a company when the debt is disputed?It is a long-established principle that winding-up proceedings should not be commenced where the petition debt is genuinely disputed on substantial grounds. If a purported creditor attempts to do so, the court can invoke its inherent jurisdiction

Termination of LPA or fixed charge receivership

Termination of LPA or fixed charge receivershipA note on terminologyThe Law of Property Act 1925 (LPA 1925) enables a mortgagee of a legal mortgage to appoint an LPA receiver:•when the mortgage moneys become due, and•after making a demand for payment under the terms of the mortgageThis right may
What is a statutory declaration of solvency and what happens if a false declaration of solvency is made?

What is a statutory declaration of solvency and what happens if a false declaration of solvency is made?

What is a statutory declaration of solvency and what happens if a false declaration of solvency is made?Statutory declaration of solvencyA company enters voluntary liquidation when its members vote to do so by a special resolution. For further information, see Practice Note: What is a members’

Is it possible to serve a statutory demand abroad and, if so, how enforceable is it?

Is it possible to serve a statutory demand abroad and, if so, how enforceable is it?

Is it possible to serve a statutory demand abroad and, if so, how enforceable is it?A statutory demand is a demand for payment of a debt due to a creditor by a debtor. Where a statutory demand is served on a company and the debt is neither paid, secured or compounded for within 21 days, then the

Can you wind-up a company when the debt is disputed?

Can you wind-up a company when the debt is disputed?

Can you wind-up a company when the debt is disputed?It is a long-established principle that winding-up proceedings should not be commenced where the petition debt is genuinely disputed on substantial grounds. If a purported creditor attempts to do so, the court can invoke its inherent jurisdiction

Termination of LPA or fixed charge receivership

Termination of LPA or fixed charge receivership

Termination of LPA or fixed charge receivershipA note on terminologyThe Law of Property Act 1925 (LPA 1925) enables a mortgagee of a legal mortgage to appoint an LPA receiver:•when the mortgage moneys become due, and•after making a demand for payment under the terms of the mortgageThis right may