Creditors' Voluntary Liquidation ("CVL")

Under a CVL the members of a company resolve to wind up the company on the basis that it is unable to pay its debts as and when they fall due or is otherwise insolvent.

Although the members have the choice of appointing a liquidator at their Extraordinary General Meeting, the creditors, a meeting of whom must also be called, have the right to appoint their own liquidator in which case the members' choice must resign.

See Insolvency Fact Sheets for more information.

Members' Voluntary Liquidation ("MVL")

A company can only be placed into Members' Voluntary Liquidation where it is solvent and therefore able to pay its debts as they fall due. The directors of the company have to swear a declaration to show that the company is able to pay its debts in full.

If the company becomes insolvent then the liquidation is converted into a creditors' voluntary liquidation.

See Insolvency Fact Sheets for more information.

Compulsory Liquidation.

Compulsory liquidations are ordered by the court on a petition being presented by:

1. The Company in a general meeting. Although the company may follow a cheaper Creditors' Voluntary Winding Up route instead, it may be that members believe that a more wide ranging investigation of the company's affairs is needed.
2. The Directors.
3. Any Creditor including a secured creditor although he is more likely to rely on his security.
4. A Contributory who is someone who would have to contribute to the assets of a company on a winding up and is normally a shareholder who has indebtedness in respect of uncalled share capital.
5. The Secretary of State in cases where it is in the public interest that the company be wound up, where a person authorised under the Financial Services Act is unable to pay his debts or a public company that does not have the requisite certificates.

Creditors often petition for a winding up having served a Statutory Demand on a creditor for a debt that is due with a value of more than £750 and that Statutory Demand has not been settled within 21 days.

Request a copy of the full Gore and Company Compulsory Liquidation Papers.

Request a copy of the full Gore and Company Members' Voluntary Liquidation Papers.

Request a copy of the full Gore and Company Creditors' Voluntary Liquidation Papers.

Gore and Company works with clients to help them establish the best approach to liquidation. The firm also acts as Liquidator helping to maximise the returns to creditors.

Contact us for a free initial consultation or a free initial business review.