Members voluntary liquidation

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Is the members voluntary liquidation route the right one for you?

A solvent company might need to be brought to end for any number of reasons. The directors and shareholders may have decided to move on and pursue different interests, or it could be that the market in that sector has diminished.

Whatever the 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 include:

• the liquidator helping to collect all the assets of the company, deal with any outstanding claims from creditors and then return surplus funds to the shareholders
• in helping with these claims, the liquidator will ensure that they are all properly dealt with to avoid any comeback in the future once the company is dissolved
• any complications in terms of liabilities, contracts, employees, pension issues will be dealt with professionally and impartiality
• the resolution of any disputes between shareholders. 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

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.

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.

Having worked with Tim and Andy, the founding partners of Francis Wilks & Jones, since 2003 and before at their previous practice, I thoroughly value the expertise and flexibility brought to every assignment by them and their team. As a relatively new insolvency practice, BM Advisory has carefully selected its business partners who share a similar enthusiasm to find workable solutions for our mutual clients often in distressed situations. Francis Wilks & Jones fits this bill well and we would have no hesitation in recommending the firm to anyone who requires a sound law firm who are approachable and easy to talk to.

Andy Pear, partner at BM Advisory