I P Services Limited Licensed Insolvency Practitioner
9 Woodhill Road Portishead, Bristol BS20 7EU
Telephone 01275 843555 and Fax 01275 843355
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Members Voluntary Liquidation
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The MVL procedure can typically be useful when directors decide
for whatever reason that a company should cease to trade and that its affairs
should be fully wound up. It can be a tax efficient vehicle for shareholders
to realise their capital investment in a company.
An MVL is not strictly an insolvency procedure as the company must formally
be declared by the directors to be solvent. A licensed insolvency practitioner
is appointed by shareholders to realise assets if not already done by the directors,
to pay remaining creditors in full, and to make capital distributions to shareholders.
In the process of winding up the company's affairs, the value of company assets
and of shareholders' capital is crystalised and there can often be significant
taxation implications for the company and the shareholders. Careful tax planning
must therefore be carried out well before appointment of a Liquidator.
This information is written in general terms and cannot be fully comprehensive.
Its application to particular circumstances will depend on specific facts. The
views and suggestions set out are not intended to constitute professional advice
or to be a substitute for specific advice.
Peter O'Duffy F.C.C.A., R3, Licensed by ACCA, 1 Woodside Place Glasgow
G3 7QF