Members Voluntary Liquidation (MVL)
An MVL is a solvent liquidation and a formal process. An Insolvency Practitioner is appointed liquidator by a company’s shareholders to realise all of its assets and settle all of its debts in full, including interest, within 12 months.
Surplus funds are then returned to shareholders.
MVLs are useful in owner-managed businesses where it has not been possible to sell the business and owners seek to release the value of their shareholding.
An MVL can also as a reorganisation tool, e.g. to enable to restructuring of a group of companies.
MVLs may also be appropriate when charities and not-for-profit organisations disband.
At Bailams we strive to provide clear and concise guidance in the practical workings and benefits of MVLs.