Members Voluntary Liquidations
A Members Voluntary Liquidation (MVL) is a procedure for solvent companies to wind-up the company’s affairs in an orderly manner by appointing a liquidator to manage the process of realising the company’s assets, selling or ceasing it’s operations, arranging payment of its debts and distributing surplus assets among its members.
Initiated by the company’s members an MVL is appropriate when a company has reached the end of its useful life, has no outstanding lawsuits and is solvent and able to pay its liabilities in full.
It is also an appropriate means of dispute resolution between shareholders and is commonly used when there are substantial assets for distribution and the company does not qualify to apply for strike off.
There are many benefits associated with MVL including savings in compliance and management costs, the ability to access stamp duty roll-over relief, an orderly distribution of assets and potential tax savings in the final distribution to shareholders.
An MVL also potentially provides a higher level of assurance that the company will not be reinstated.
For more information on Members Voluntary Liquidation please feel free to contact the team at Chifley Advisory for Free Confidential Help