Members Voluntary Liquidation (MVL) – An MVL is the voluntary winding up of a solvent company. The purpose of an MVL is to bring the life of a company to a formal end. This may be done for business restructuring purposes or to facilitate a tax efficient mechanism to return assets back to the company’s shareholders. Some specific reasons for a company to be placed into MVL are listed below.
- ● Retirement of directors.
- ● Reorganisation of a group of companies.
- ● The company no longer trades or has a purpose.
- ● Restructuring of company assets.
- ● Shareholders wishing to leave their position and extract their investment.
To qualify for an MVL, the directors of the company need to be satisfied that the company is solvent. The directors will be required to swear a declaration of solvency confirming that all of the company’s liabilities will be satisfied in full within twelve months.