This Q&A refers to a members' voluntary liquidation (MVL), creditors' voluntary liquidation (CVL) or compulsory liquidation, not s 110 demerger (section 110 of the Insolvency Act 1986 (IA 1986)). MVL The articles of association of a company usually provide that the liquidator may, with the sanction of an extraordinary resolution of the company (and any other sanction required by the Companies Act 1985), divide among the members in specie or kind the whole or any part of the assets of the company and for such purposes set a fair value on the property. It is usual to pass such an authorising resolution contemporaneously with, or as part of, the special resolution to wind up, although it can also be passed at a later date. Where appropriate, a special resolution may also be similarly passed under IA 1986, s 110(3)(a) authorising the liquidator to transfer the business or assets for consideration in specie receivable by the members in accordance