Insolvency Solutions by Gregory Michaels & Co (UK)

Members' Voluntary Liquidation

A Members' Voluntary Liquidation is not an insolvency procedure as the company being wound up is not insolvent.

When is it used ?

The procedure is used in various circumstances such as:

1. The company has ceased its operations and there are assets to be distributed.

2. The shareholders are in disagreement amongst themselves as to the future management of the company.

3. A company may start incurring losses but is still solvent.

4. Section 110 reorganisation or reconstruction.

Procedure

A Declaration of Solvency is made by the directors up to five weeks before the resolution to wind-up the company is passed.
The members will hold a general meeting and a special resolution winding-up the company must be passed by 75% of members present and by proxy.
A liquidator is appointed who will realise the assets and make distributions to members.

Further Information on Insolvency

• Useful Information on All Aspects of Insolvency
• Businesses and Assets for Sale in Insolvency Cases