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What is the procedure for a member’s voluntary liquidation for a group?

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What is the procedure for a member’s voluntary liquidation for a group?

There are a variety of reasons why a director may want to close a solvent limited company. For example, retirement might initiate closure, or a merger with another company, a major company restructure or if the company is dormant. Whatever the reason, if the company is solvent, i.e. has sufficient funds to pay all of its debt, the best route is through an MVL, or Members’ Voluntary Liquidation.

An MVL, or Members’ Voluntary Liquidation, is the formal process of winding up a solvent company. When the decision has been made to close the company, an MVL is a cost-effective way to do this. To be eligible for an MVL, the company must be in a position whereby it has paid all of its contractual obligations and creditors, including any PAYE, VAT and tax, or is able to in full within twelve months, and thereby is considered solvent.

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