Company closure can be the result of numerous different circumstances and ultimately becomes a voluntary or compulsory process. Whether a creditor is forcing your company into liquidation or you have chosen to wind-up your company affairs, Real Business Rescue's expert team can advise on the best way forward. Liquidation, whether mandatory or voluntary, can be a complex process with numerous implications for directors which we can offer guidance on.
- In many cases, a company has hit upon hard times and what was once a viable business has become insolvent with creditors petitioning for the company to be liquidated. HMRC is the most common creditor but this can also be a trade supplier. The creditor or creditors can apply for a Winding Up Petition to be sent to your company which is the most serious step a creditor can take. They are effectively asking the Crown to shut down your company. If you have received a Winding Up Petition, you must act quickly and consult with a licensed insolvency practitioner or the next step will be a Winding Up Order which will see your company liquidated. You can arrange a free initial consultation with one of our local insolvency practitioners at your convenience.
CREDITORS' VOLUNTARY LIQUIDATION (CVL)
- If your company is struggling
to the point that it's become insolvent and you wish to cease trading and close the company, this process is called Creditors’ Voluntary Liquidation – known as a CVL. In these circumstances, where you have ascertained that continuing to trade will only worsen the position of your creditors, the company assets are realised (i.e. valued) and sold with a view to paying a dividend to creditors where possible. We can help directors who are looking into the prospect of a CVL.
MEMBERS' VOLUNTARY LIQUIDATION (MVL)
- If your company is solvent but you wish to place it into liquidation, the procedure is called Members’ Voluntary Liquidation – commonly known as an MVL. Voluntary liquidation of this nature shouldn't be confused with company strike-off which is another way in which companies can choose to close but this only applies in certain circumstances. If your company has assets or is of a complex structure, an MVL will be the most tax efficient liquidation process.