Members Voluntary Liquidation

Our team at Francis Wilks & Jones have many years’ experience between them working with companies, individual directors, and insolvency practitioners in bringing about an orderly end to a company using the process of members voluntary liquidation.

Is the Members Voluntary Liquidation route the one for you?

A solvent company might need to be brought to end for any number of reasons.  It could be that the directors and shareholders have decided to move on and pursue different interests, or it could be that the market in that sector has diminished. For whatever reason, if you wish to bring your company to a close, the best way to do this for the company, its officers, and the future, is often through a members voluntary liquidation.

A members voluntary liquidation can only be used by a company that is solvent. While it is possible as an alternative for a very straightforward solvent company to apply to the Companies Registrar for the company to be dissolved and taken off the Register, this is not an option if your company has traded, has assets or debts and has a number of shareholders and directors.

In those circumstances a members voluntary liquidation is the best option.

Advantages of a members voluntary liquidation

The advantages of a members voluntary liquidation with Francis Wilks & Jones are:-

  • A liquidator will collect all the assets of the company, look at any outstanding claims from creditors and deal with the same, and then return surplus funds to the shareholders
  • We work with the top professional independent insolvency practitioners who will act as the company’s liquidator. As well as making good use of their professional skills, they can use their professional contacts to deal with assets of the company in the best way for the company
  • The liquidator will handle all creditors, assessing their claims, and will ensure that they are all properly dealt with to avoid any comeback in the future once the company is dissolved.
  • If a company has any complications in terms of liabilities, contracts, employees, pension issues, these are best dealt with by a professional expert for speed and impartiality
  • If there has been a shareholder fall out, a licensed insolvency practitioner as an independent person is better placed to deal with the wind down than the officers of the company
  • Following the orderly wind down of a company, the liquidator will apply to Companies House to have the company taken off the register.

Contact the experts today – we can help

If you think a members voluntary liquidation might be a suitable option for your company, then get in touch with our friendly team at Francis Wilks & Jones to have a chat.  We can discuss whether a members voluntary liquidation is right for your company and talk you through the process.

In the meantime, we have also set out below our answers to the common questions we get asked on this subject which we hope you find useful.

 


Common questions answered

1. Members Voluntary Liquidation

Our team of company liquidation experts at Francis Wilks & Jones are frequently instructed by companies who wish to bring about an orderly end to their business using the Members Voluntary Liquidation process. But what does this involve?

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2. Members Voluntary Liquidation process

At Francis Wilks & Jones we are frequently asked for more detail of the Members Voluntary Liquidation process. We are instructed to act in Members Voluntary Liquidation by shareholders on a regular basis and set out below some of the key points regarding a Members Voluntary Liquidation process.

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3. Members Voluntary Liquidation versus strike off

When a solvent company wishes to liquidate assets and end the company, for whatever reason, then the company has the option of simply applying to being struck off the Companies Register and dissolved, or to use the Members Voluntary Liquidation process first, which will inevitably lead to the dissolution of the company at the Companies Registry in due course.

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4. What is the difference between a members voluntary liquidation and a creditors voluntary liquidation?

The team of company liquidation experts at Francis Wilks & Jones are often asked what is the difference between a members voluntary liquidation and a creditors voluntary liquidation? We set out below some of the key differences around these processes.

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5. What are the directors and shareholders roles in the members voluntary liquidation process?

Our team of liquidation experts at Francis Wilks & Jones act for both directors and shareholders in putting a company into members voluntary liquidation. Not surprisingly they are concerned to act in the best way possible for the company, and also to protect their personal position as directors or shareholders. We are frequently asked to advise directors and shareholders in this position, and we set out some of the key points to look out for below.

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6. How do I start a members voluntary liquidation?

A members voluntary liquidation can only be brought by a solvent company looking to go into members voluntary liquidation as a way of an orderly wind down of a company that is no longer required. At Francis Wilks & Jones our team of liquidation experts frequently act for both directors and shareholders of solvent companies to help them go into liquidation. We set out below some more detail on the process.

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7. What happens if we discover we are insolvent while in a members voluntary liquidation?

For a company to enter a members voluntary liquidation it must be solvent. In order to show that the company is solvent, the directors must swear a legal declaration that the company is solvent and will be able to pay off all its creditors, including interest, within 12 months. If this turns out not to be the case, there can be some significant consequences for the company and the directors, which we discuss further below.

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8. How long does a members voluntary liquidation take?

Because a members voluntary liquidation is a liquidation that is ultimately under the control of the shareholders of the company, then it is often seen as the quickest and smoothest liquidation process. Whilst it is not possible to predict how long the whole process will take, shareholders and directors seriously considering members voluntary liquidation often ask us at Francis Wilks & Jones how long a member voluntary liquidation will take?

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9. What are the advantages and disadvantages of members voluntary liquidation?

At Francis Wilks & Jones our team of company liquidation experts are often asked to advise on whether a members voluntary liquidation is a good option for their company. We set out below some of the advantages and disadvantages of a members voluntary liquidation to help you decide.

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10. What happens to the company after a members voluntary liquidation?

Directors and shareholders may already be familiar with the concept of members voluntary liquidation, a process where a solvent company may be wound up by a liquidator in order to bring the company to an end. However, the full detail of what happens to the company after the liquidation is sometimes unclear, so we set out some more information below.

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