Members’ Voluntary (solvent) Liquidations (MVL)
A Members’ Voluntary Liquidation, or MVL, involves the voluntary liquidation of a solvent company by its shareholders.
Unlike a Creditors’ Voluntary Liquidation (CVL), the cash and assets coming from the liquidation go to the company’s members rather than its creditors.
The shareholders must also make a statutory declaration to confirm that all of its liabilities can be met in full.
One of the key advantages of an MVL is that it can allow members to extract their share of the business in a tax-efficient manner.
If you are considering an MVL, the experienced team at Gibson Booth can offer specialist advice and support. Please contact us for further assistance.