Company Voluntary Liquidation – Creditors Voluntary Liquidation (CVL)
This occurs where the shareholders, usually at the directors' request, decide to put a company into a Company Voluntary Liquidation because it is insolvent. Either the company cannot pay its debts as they fall due or it has more liabilities than assets.
The purpose of the Company Voluntary Liquidation is to appoint a responsible person who has a duty to collect the company's assets and distribute them to its creditors in accordance with the law. That person is the liquidator who must be a licensed insolvency practitioner.
This route is only appropriate if your company is insolvent. For example if:
Its liabilities exceed its assets and/or
It cannot pay its debts when they fall due and
There is no prospect of the company continuing to trade
Under these circumstances, with assistance of the Directors, the Shareholders place the company into a Company Voluntary Liquidation, with the creditors having the final vote on the choice of Liquidator. We are qualified to undertake the role of Liquidator, using our extensive experience and expertise to secure the best outcome.