
Free Business Review
Claim your Free Business Review to understand what options are available to you.
Require Immediate Support? Free Director Helpline: 0800 644 6080
Free Director Helpline: 0800 644 6080
Published:
Free Business Review Find Your Nearest Office
Company liquidation is a formal process used to close down a limited company. There are two types of liquidation that you can initiate as a director, and a third that is available to creditors seeking repayment of their debt.
This video describes the two principal methods of company closure, and the third method that is commenced by court order.
If the company is solvent, a tax-efficient procedure called Members’ Voluntary Liquidation (MVL) can be followed. This is typically appropriate when a director retires, or the business serves no further purpose and needs to be closed down in an orderly manner.
If your company is struggling with unmanageable debts, squeezed cash flow, or an uncertain future, you are far from alone. We speak to company directors just like you every single day, and we are here to give you the help and advice you need.
Call our team today on 0800 644 6080
Companies in financial difficulty that are unable to repay their creditors need to follow a different process to remain within UK insolvency laws. This procedure is called Creditors’ Voluntary Liquidation (CVL). It places creditor interests first so no unnecessary financial losses are suffered.
Both company liquidation procedures require the appointment of a licensed insolvency practitioner (IP) to realise assets and distribute funds, whether to shareholders via an MVL or to creditors in a CVL.
This video also describes a third form of company liquidation, which is enforced by order of the court. If a creditor has unsuccessfully attempted to recover their money via the standard methods of debt collection, they may be able to petition for a company to be closed down.
This process is called compulsory liquidation, but unlike CVL, directors have no control over when the company enters liquidation or who is appointed as liquidator.
All UK sectors are experiencing specific challenges at present, particularly in light of the Covid-19 pandemic. Find out how your sector is performing here.
Simply search your Limited Company Name or Company Number
We will also check if you’re eligible for Director Redundancy
We provide free confidential advice with absolutely no obligation.
Our expert and non-judgemental team are ready to assist directors and stakeholders today.
Claim your Free Business Review to understand what options are available to you.
Find your nearest office - we have more than 100 across the UK. Remote Video Meetings are also available.
Free, confidential, and trusted advice for company directors across the UK.