Members Voluntary Liquidation (MVL)
An MVL is usually suitable when the directors of a company believe that the company is solvent but no longer wish for the company to trade. This may be due to a wide range of reasons e.g. cleaning up corporate structures, following an acquisition, retirement, restructuring the tax position, etc.

It is only appropriate if the company has sufficient assets to be able to pay all of its creditors in full (together with all costs) and the liquidation is referred to as a solvent liquidation, or Members Voluntary Liquidation.

TDC Solutions Limited will work with you and guide you through the required process.

Creditors Voluntary Liquidation (CVL)
A CVL may be appropriate when the directors and/or shareholders recognise that the business cannot pay its debts as they fall due and decide to put the company into liquidation on the basis it is insolvent. A licensed Insolvency Practitioner is appointed as the Liquidator of the company whose primary duty is to realise the assets of the company and distribute them to the company’s creditors.

The Liquidator also has a duty to look into the conduct of the company directors to ensure that they have acted properly. With a CVL the company would normally cease to trade immediately, the assets realised and employees dismissed. If it may be possible to trade out of the insolvent position then other insolvency procedures such as Company Voluntary Arrangement or Administration may be more appropriate.

When facing financial pressures prompt and effective action is vital and TDC Solutions Limited are here to guide you through the options and recommend the appropriate solution.

Compulsory Liquidation

Compulsory Liquidation is a court driven process. The court will make an order for the company to be wound up following an application presented by:

  • the company
  • the directors
  • any creditor(s)
  • a contributory or contributories, or
  • by all of these parties together or separately