The Complete Guide to Members Voluntary Liquidation (MVL)

What is MVL?

A key process available to a number of companies, enacting Members Voluntary Liquidation (MVL) involves your company’s shareholders appointing or designating a liquidator to close down an otherwise solvent company.

This is instigated as a formal motion by the company’s directors and can only be passed by a 75% shareholder vote, requiring a high degree of unity within the group. Once the motion has been carried and the liquidator appointed, the individual will set to work to catalogue and realise all assets within the business. These will then be used to directly address company liabilities and – once all shortfalls are addressed – ensure that a capital distribution is paid out to company shareholders.

Aside from passing through a shareholder vote, MVL requires a company to be fully solvent before the task begins.

Why might I be in a position to need one?

While each business is different from the next, there are four key criteria that can trigger the need for an MVL action. These include-

Shareholder Retirement

: If key directors or shareholders wish to resign, quit, or want to move on for any eligible reason, an MVL can be a highly effective way to re-organise and resolve issues in time for their leaving.

Shareholder Split

: This can be instigated by shareholders attempting to split or divide the company’s assets amongst themselves. Securing an impartial, professional liquidator can often prove to be the most time and resource efficient way to carry out the task.

Business Reorganisation

: MVL can be a highly effective way to re-structure or organise a group of companies within the business. This can help shutter dormant elements or close down certain parts of the company and relocate resources.

Cessation of Trading:

Conducting an MVL is often a key part of a business exit strategy and deployed once plans have been set in stone. This can also allow businesses to avail of entrepreneurial relief or prove to be the most efficient way to release capital and ensure that the correct amount of income tax is paid.

How does it work?

While it may seem no more than carrying out a vote, the MVL process is highly involved and passes through six formalised steps before concluding. This makes it essential for all parties involved to fully understand and commit to the process from start to finish.

While the approach may differ from company to company, MVL generally involves the following steps-

  1. Initial Meeting

    : While the approach may vary based on the composition of the business or articles of association, this initial meeting will be used to sound out a provider for the proposed insolvency action and discuss the potential approach in full. This should detail the tasks on this list and aim to appoint a provider to carry out the more exacting administrative tasks.

If consensus is achieved, the formal steps of conducing a MVL can proceed.

  1. Solvency Declaration

    : Before any liquidation actions can be taken, a statement must be signed by the company’s directors declaring the state of the company’s full liabilities and list of assets. This must be true and – where possible – validated by a third party.

The document should demonstrate that the directors have commissioned or led an inquiry into the state of the company’s affairs and confirm that the business will be able to resolve its debts in full – including interest – within a 12 month period of the document’s signature.

Once complete, this must be signed a minimum of five weeks before the signature of the culminating winding up resolution. This should also accompany the drafting of detailed and accurate cessation accounts.

Remember, falsely signing a declaration of solvency – unintentionally or not – is a criminal offence and will only compound issues further down the line when the liquidator undertakes the process in full.

  1. Shareholder Meeting

    : Depending on the composition of the business, shareholders will most likely need to be informed in advance before taking any further actions. This will most often involve the use of a formal notice that details your proposed set of resolutions in full.

While this may vary, the documentation should aim to include-

  • – Details about the formal winding resolution
  • – Information about the chosen liquidator and an outline of the approach to be taken
  • – Specific detail about how assets are to be assessed and redistributed
  • – The shareholder’s responsibility vis-à-vis being able to vote on the action and the percentage of responses to carry the action
  • – Clear and specific detail about how to respond, avenues to express queries and concerns

As standard, if 75% of shareholders respond by backing the motion, the liquidation process can begin immediately.

Alternatively, if a vote is to be taken by shareholders in person – you are legally required to give shareholders 14 days to convene the meeting, or a shorter period of time if 90% of individuals contacted agree to a reduced period of time to hold an urgent meeting.

Once the physical vote is taken, and passed, the liquidation process can then begin immediately.

  1. Liquidation

    : Once the liquidation actions are fully confirmed, your chosen provider can begin their work. While this will require little input from the company, the liquidator will carry out some – if not all – of the following tasks:

  • – Selling off company assets, using any money acquired to repay creditors
  • – Resolving any legal or contractual issues
  • – Removing the business from Companies House
  • – Instigating and resolving payments to known creditors
  • – Handling deadline and project management for the work, acting as a buffer when dealing with any relevant authorities
  • – Paying out any key liquidation costs and overseeing drafting of concluding VAT bill
  • – Updating creditors and other relevant persons on the progress of the liquidation work, or providing regular updates as required
  • – Following up/aftercare interviews with directors and leading individuals. This helps gather learning for future work, fulfils due diligence, and creates records to be used in the event of investigations, inquiries, or legal actions

During this process, the liquidator takes control of the business and becomes a key point of contact for relevant bodies throughout the process. During this time, directors resign control over the company or any right over the assets that it represents. This means that they are no longer able to act on the behalf of or as a representative of the company, and all engagement must be made through the chosen liquidator.

Once a liquidator is appointed, the current directors are legally required to-

  • – Hand over any information about the company requested by the liquidator or their team
  • – Hand over any assets, paperwork, or official records needed.
  • – Be available to respond to any interview requests or interviews with the liquidator

While the above involves a certain amount of discretion, it is worth remembering that failing to comply with liquidator requests may result in censure or disqualification. This makes it essential to select a suitable provider and fully comply with their requests in a timely manner.

  1. Deed of Indemnity actions

    : A signed indemnity empowers the liquidator to move quickly to reimburse shareholders at the point of liquidation. This occurs before the formal completion of the MVL process. Passed once there are no outstanding liabilities remaining, the signing of the indemnity deed allows your chosen liquidator to distribute relevant assets to shareholders. As standard, this will aim to hold back a reservoir of assets to cover the provider’s fees alongside any unique payments, reimbursements, and an additional buffer to allow the team to address any supplementary issues.

A deed is then designed to help formalise the practical elements of the liquidation process and safeguards put in place to protect against future derailments. The most common example of this is the appearance of new creditors that were not accounted for earlier on in the process. In this case, the document empowers the liquidator to recoup the value of these additional costs and claims from shareholders that had previously been fulfilled by an earlier distribution.

  1. Final Meeting

    : Once the liquidation actions are complete, a final meeting will be held with all relevant parties present to fully close the case.

This includes-

– Acquiring all relevant tax clearance from relevant UK govt. departments

– Confirmation there are no further claims from additional creditors

– Reimbursing all relevant parties

– Being fully satisfied with the conduct of all parties.

How long does it last?

Ideally, an MVL is a carefully considered action that will likely prove to be permanent. However, if you want to reverse the decision, there are options available.

MVL’s are typically undertaken by a solvent company when a director wishes to retire, or they decide to return to the world of full-time employment. A process that should never be undertaken without the right amount of due diligence.

However, it is possible to ‘undo’ an MVL once it has been formally enacted.

Once six years have passed since the resolution of the process, an application can be made to the high courts asking for a formal annulment of the liquidation process. This must be accompanied by sufficient evidence to show the benefit reversing the decision would be to the company and can potentially take a significant amount of time.

Are there potential tax benefits?

One of the key reasons to choose an MVL is that, in addition to bringing the company’s business to a compliant halt, the delivery of surplus funds to eligible shareholders and members can come with significant tax benefits.

If correctly executed, most dividends are classed as Capital distributions instead of income distributions and fall under the umbrella of capital gains tax. This carries lower rates and potentially allows for the addition of entrepreneurial relief. Depending on the context and composition of the business, additional benefits can potentially be leveraged.

However, it is important to realise that – while taxation is a potential benefit – it cannot and should not be the major driver for choosing to undertake an MVL action. HMRC regulations explicitly state that they are able to challenge specific shareholder actions where the course of action taken is to allow them to actively evade tax.

What is entrepreneurial relief?

Entrepreneurial relief Is legislation that reduces the amount of capital gains tax (CGT) paid when disposing of business assets – making it an extremely useful tool for businesses or companies carrying out MVL or any other actions. Designed to encourage individuals to grow businesses, the scheme acts as a safety net for companies and reduces the CGT paid to 10% on any profits made when selling assets.

As of 2020, individuals can claim up to £1m of lifetime relief – with this value rolling over from project to project. This is made available to individuals, not companies and requires you to fall within strict criteria when making an application for relief.

The individual must be –

  • – A sole trader, employee, or officer within the company in question
  • – In their role, the individual must have held 5% or more of the company’s share capital and 5% of the voting share capital
  • – The value of their £1m lifetime relief limit has not been exceeded.

Checking with your accountant, liquidator, or with HMRC can help you confirm the status of your eligibility and ensure that you are able to secure the relief you require and need.

Is MVL the same as administration?

MVL and administration are two processes that are often confused for one another. While both involve formal processes that help resolve insolvency, liquidation is based around taking steps to completely dissolve the company in question while administration allows the company in question to be salvaged or rescued at a point in the future.

Under administration, the company is placed under the control of a dedicated practitioner. This individual then has three key responsibilities-

  • – Rescue: The business is to be salvaged to the point where it can potentially resume its activities
  • – Restitution: If addressing issues facing the business is not possible, the individual works to achieve the best possible outcome for shareholders that would have been otherwise impossible through the liquidation process.
  • – Reimbursement: If neither can be achieved, realised property and funds are used to distribute funds to key creditors.

Both processes are used to address challenges facing an insolvent company whose known liabilities surpass the assets it has access to or is unable to fully repay any debts that may be falling due.

How common is an MVL?

While the process may appear intimidating, undertaking an MVL is an everyday tool that is used by a number of businesses looking to take a tax efficient approach to restructure their organisation or ensure that they are closed down or reorganised correctly.

Liquidation is an everyday process and annual company insolvencies number in the tens of thousands – with 17,196 liquidations in 2019 alone. A member’s voluntary liquidation is a lighter touch approach favoured by solvent businesses and offers a greater deal of control when it comes to resolving issues, taking the next step on your long-term strategy, or just winding up a business.

However, the MVL process should never be entered into lightly and should involve a great deal of forethought and planning before making the decision to ‘pull the trigger’ on liquidating your assets.

What are the benefits of an MVL?

A favoured winding up choice by any solvent company, MVL’s carry a number of key benefits that can prove to be extremely attractive for a wide range of businesses and companies. These include-

Time and Cost Savings

: Choosing to undertake an MVL gives you greater control over the winding down process and allows you to set your timetable for events. This enables you to save on auditing and accountancy fees and efficiently realise the value of your business assets. Choosing the right external liquidator can also free director and management time when it comes to compliance, reports, and returns – freeing them up to strategise or carry out other mission critical tasks.

Risk Reduction

: Choosing the right MVL provider massively reduces risk to directors and board members by divesting them of their position and isolating them from the MVL process. This allows companies to fully extract the right value from their business without any risk to their personal or professional reputation. As a licensed professional, the liquidator will ensure that every step is followed and administered to the highest possible standard.

Transparency

: Hiring an external liquidator allows you to designate an individual who has full oversight of the process and ensures that compliance is fully followed. This ranges from taking a forensic approach to reviews and interviews, while ensuring that the letter of the law is followed, and every action is taken to ensure successful completion. This greatly reduces any follow-on work and makes taking additional commercial actions much easier. Hiring the right liquidator can also make the process clear and straightforward, increasing confidence in the process and simplifying what can be a daunting process.

Taxation:

While it is not the sole reason for choosing to wind up a business, entrepreneurial relief and other actions allow liquidators to secure lower tax rates for shareholders and ensure the timely return of monies to relevant parties. This allows for the efficient, fair extraction of value for the business and allows peace of mind when it comes to ensuring that the company is being closed down or reorganised in a way that it timely and efficient.

What are the downsides of an MVL?

While MVL is a highly regulated process, there are still variables and other issues that can give pause to undertaking the process. These include but are not limited to:

Duration

: Executing an MVL is a highly exacting process that – even with extensive preparation – can take longer than less precise processes such as deregistration. While hiring a liquidator will allow you access to a timeline and regular status updates, the unique composition of your business can potentially make the process more time consuming. However, the potential benefits you can receive from correctly administering your tax can help balance out this initial cost.

Asset Loss

: While liquidation is designed to release value from assets, losing said items can be a blow – especially when it comes to ‘In Specie’ items. While your personal assets will remain safe, other assets will be affected. These will often be realised in combination at a lower value from their initial purchase price. It is also important to remember that intangible assets like staff experience will be lost due to redundancies.

Costs

: In addition, hiring a liquidator will incur professional fees that will most often be extracted from the sale of assets. And while liquidation is designed to address creditors and shareholders, there is the potential that individuals can still be held responsible for loans or other debts such as personal guarantees or director loans. These can potentially be significant and should be addressed in full when dealing with any liquidator.

Client Specific Issues

: Depending on your plans, MVL can potentially act as a roadblock. HMRC’s rules prevent anti avoidance and do not permit a director from opening a similar company within two years of the liquidation taking place. Depending on your long-term plans, this can be a significant obstacle and it may be worth considering other options you may have available to you.

If you are still unsure about the process, engaging a professional liquidation team can help answer your specific questions and help put your mind at rest.

What do they mean by ‘In specie distribution?’

Liquidation involves the realisation of material assets into money that can be funnelled to the relevant bodies. “In Specie” – or “actual form” – distribution applies to assets that are difficult or time consuming to realise into cash and the asset itself is transferred instead. This commonly occurs when it comes to equipment, stocks, land, or property.

As part of the MVL process, these assets will be independently valued, ring fenced, and dealt with appropriately.

Is an MVL right for my company?

Ideally, your business exit strategy should be discussed at your moment of founding. This can help you take a long-term strategic approach that provides a safety net for your work and potentially put in place a number of contingency plans to support your shareholders and employees.

If you are considering an MVL, it is important to consider the range of alternative options available to you. These include, but are not limited to-

  • – A change in management or a takeover, allowing a speedy way to exit the business. However, bringing in a new or external management team can bring a number of hard and soft issues, and will often result in conflict unless the process is carried out correctly and with due care.
  • – Handing on the business to a family member can help ensure a degree of control but can come with a range of complicating factors. While expedient, the action needs to be driven by business logic rather than family concerns and requires full oversight to all parties that the decision directly affects.
  • – Dissolving the company is a quick and efficient process but can potentially cause a number of issues in the future. If the process is investigated and irregularities are discovered, this can result in significant bad press and leave directors open to conduct investigations or punitive action.
  • – Selling the business to a third party is a popular choice for successful businesses and ones that may potentially be floundering. While this can potentially be neat, there is often a high risk of delay when it comes to sourcing and vetting the right buyer, with the process often falling through or incurring unforeseen additional legal or administrative fees.

Undertaking an MVL allows you to take a tax efficient, organised approach to winding down your business and allows a potential pathway for directors that want to retire, quit, or return to work in another capacity. If your projected distributions exceed £25k, MVL is potentially a fit-for-purpose solution that can allow you to move ahead with confidence and efficiency.

What are the options available to me?

When it comes to pursuing liquidation as a winding down strategy, you will have three options available to you. These are-

Members’ Voluntary Liquidation

: This is applied to solvent companies that have sufficient assets to repay creditors and also make a distribution to the company’s shareholders.

Creditor’s Voluntary Liquidation

: The most common type of liquidation, this is enacted when a company is able to pay its debts and the creditors are actively involved in the liquidation process.

Compulsory Liquidation:

This is applied to companies that are unable to pay their debts or are subject to chasing from creditors. This is enacted by creditors making an application through the courts for the company in question to be liquidated.

While each has their own potential uses, MVL is conventionally the most desirable approach for a solvent company to take.

MVL vs CVL

The process is very close to MVL and involves the businesses’ directors making the decision to close out the company’s trading and liquidate assets in order to fulfil accumulated debts.

While MVL is voluntary, Creditor’s Voluntary Liquidation (CVL) is often only available as an option for insolvent companies and involves the use of an external insolvency practitioner to oversee the process. This process has a little less scope for manoeuvring than MVL as creditors will have increased say through this process, especially if the entity is an authority or institution such as a bank. Far preferable to CL, this can help resolve an acrimonious situation and involves both sides taking a pragmatic approach to debts owed and the capacity to fulfil those expectations.

As a result, many cases will place the creditors in the ‘driving seat’ for the process. This can help retain full oversight and allow the process to remain completely above board but may result in additional scrutiny.

MVL vs CL

When it comes to comparing the two approaches, it is important to focus on who will be in receipt of value. While both prioritise the payment of creditors, MVL places weight on returning value to key internal stakeholders and shareholders. On the other hand, Compulsory Liquidation (CL) places emphasis on returning the value of the company to key creditors and bring business to a close.

The process will either be started by the creditors or the government if they are owed £750 or more and has gone unpaid for a period of twenty-one days or more. If your creditors choose to start the process, they will first pursue all reasonable, legal avenues to recoup their money. This can range from letters, repeated contact attempts, or pursuing action through a solicitor or debt collector. If that is not successful, the creditor issues a winding up petition through the courts.

If the government chooses to pursue action against the company it will be due to a breach or contravention of legislation or the company is judged to be acting against the public interest. While this is relatively rare, the action has been taken in the past and will often be followed by formal criminal investigation or prosecution.

The courts will then review the petition and determine if all necessary steps have been taken to resolve the debt outside the system. If approved, the petition will be served, and the liquidation process will begin.

While both approaches follow the same key steps, throughout CL creditors enjoy a greater deal of control and prioritisation. One of the key areas the two approaches differ is through the idea of liability. While a liquidator will aim to identify and plan against any ‘liabilities’ such as creditors or hidden debts, there is a chance that these can surface during the liquidation process. These ‘contingent liabilities’ can potentially affect the MVL process but can prove to be a significant obstacle when it comes to conducting a CL as there is no solvency to address the issues.

It is also important to note that a CL can potentially become a highly emotive issue as creditors may find themselves forced to provide legal threats, bailiffs, and other approaches. While many creditors will attempt to keep a cool head and extract what value they can as their ability for legal recourse is limited. This makes finding the right liquidator to oversee the process essential as they can act as a buffer between the two parties and ensure that each step is executed to the highest possible standards.

While an MVL can be reversed, it is not possible to do so with a CL and – once complete – you will become subject to strict restrictions governed by the S216 Insolvency Act.

Can my company recover and turnaround instead of an MVL?

For many individuals, an MVL is a strategic decision that is taken to address a specific issue. Unlike CVL or CL approaches, the business will be fully solvent and able to pay any debts. However, the MVL process is highly exacting and multiple pieces of legislation exist to prevent serial liquidators which can limit your options if an MVL is pursued.

If you are pursuing avenues outside of MVL, it is worth discussing your options internally and pursuing professional help. If you want to learn more about the minutiae of MVL, it is also worth contacting a reliable liquidator and consulting with them about the best long-term decision you could make for your business to support your stakeholders, shareholders, creditors, and employees.

As previously mentioned, it is possible to reverse an MVL six years after it is enacted. However, this can severely curtail your long-term planning and it is always better to review your current standing before making any concrete decisions about liquidation.

What is disqualification?

Once a liquidator is hired, they are empowered to assess whether your conduct during the liquidation process was fully compliant or unfit.

The full list of bodies qualified to apply to have an individual disqualified includes-

  • – Competition and Markets Authority (CMA)
  • – Companies House
  • – The Courts
  • – Insolvency Practitioners

Unfit conduct can carry a heavy penalty and can culminate in you being banned from being a director for up to 15 years and potentially see the action followed by formal prosecution. While the liquidation process allows a liquidator to report a director’s conduct as unfit, any individual can report them if it is required or judged appropriate.

‘Unfit’ conduct is formally recognised as-

  • – Allowing the company to continue to trade when unable to unable to pay its debts
  • – Deploying company assets, finances, and resources for personal use
  • – Failing to pay tax owed by the company
  • – Failing to send accounts and returns to Companies House
  • – Failing to keep full and complete records
  • In addition to liquidation, a company’s director can also be prosecuted for-
  • – Failure to follow the rules set out in the company’s original articles of association
  • – Failing to keep or provide detailed company record and alert relevant authorities about issues or changes
  • – Incorrectly or wilfully misrepresenting their business tax returns
  • – Colluding with other shareholders or explicitly informing them that a business transaction will benefit them personally if taken
  • – Failure to pay Corporation Tax

Even if a liquidator is hired, the company directors are ultimately responsible for overseeing records, and regularly reviewing accounts and performance – making benign negligence a non-defence when it comes to prosecution.

This makes it essential to fully understand the liquidation process and take the time to secure a liquidation provider that you can trust and work closely with to ensure that the process is completed to everyone’s full and complete satisfaction.

How does disqualification work?

In addition to being reviewed by a liquidator, the Insolvency Service may review your business as part of initial liquidation, it will make an assessment about the overall ‘health’ of the business. Part of this review will involve looking at what the actions of directors involve.

If the service believes the correct protocol has not been followed, they will detail the actions taken that made the individual unfit, when the disqualification process will begin, and the options available to the individual to challenge proceedings.

This makes it essential to carry out the necessary due diligence before carrying out any insolvency actions and ensure that your chosen liquidator allows you to put your best foot forward when it comes to reviewing your accounts.

Will I be banned from running a company or getting credit in the future?

If you are disqualified, the ban will take affect for up to 15 years. This precludes you from-

– Assuming a directorship of any UK registered company (or overseas company that has links with the UK)

– Form, market or run a company or being involved with any of the actions.

Thankfully, you will have separate credit reports – one for your agency, one for personal use – that can help shield you from negative effects to your credit score or limit your capacity to access financial products or secure lines of credit.

Pursuing responsible and timely MVL can help protect your credit score. However, it is extremely likely that being disqualified will adversely affect your credit score and it is strongly recommended that you contact your financial advisor or bank to receive guidance on how best to proceed.

It is also worth remembering that if you are found guilty of not conducting your legal duties in the role under the Companies Act (2006) or the Insolvency Act (1986), you may find yourself in a position where you can be held personally responsible for paying off the company’s debts, which will adversely affect your credit score and greatly impact your capacity to secure lines of credit in the future.

How do I apply for an MVL?

If your company is solvent, able to fully pay its taxes, creditors, and is fully able to meet all its contractual obligations, it is eligible for an MVL. These are applied for through a fully licensed practitioner who will then assume control of the process and ensure that all key process steps are fully and transparently completed.

Before an MVL can be applied for, it is important to gather essential documentation and ensure that your house is in order. This can help make things easier for the practitioner and ensure that you are fully aware of liabilities that have yet to emerge or may fall due in the near future.

Before contacting a professional it is important to-

  • – Complete any current business and cease trading
  • – Take stock of current funds and earmark surplus for creditor payments
  • – Confirm that you are able to pay clients within 12 months of beginning the liquidation process
  • – To have deregistered with VAT, Corporation Tax, and NIC/PAYE

If any of the above cannot be completed before the appointment of a practitioner, the professional will discuss these with you and help close out the tasks to the fullest of their ability.

How much does an MVL cost?

When it comes to costing for an MVL, it is important to keep two elements in mind – the fixed costs, and the professional fees from your provider.

The fixed cost are disbursements – unavoidable costs attached to a third party – that the liquidator is required to include in the MVL process. These include a notice in the Gazette to publicise the liquidation. This allows creditors to have an awareness of the event and put forward claims before the closure of the company. While these may vary, these will cost around £89 plus VAT.

As part of the liquidation process, the professional will be put in charge of the company as its assets are realised. This requires shareholders to take out a statutory bond to protect the business’ capital while it is in the stewardship of the liquidator. This will be dependent on the size of the company, the volume of the assets, and their specific nature. This is costed on a sliding scale and ranges from £40 – £600, though this may vary given the specifics of your situation. Once the practitioner is in place, a reserve of money will be allocated for them to pay these disbursements and ensure enough remains to handle unforeseen issues.

After this, the practitioner will charge fees for carrying out the process. This will be costed at the start of the process and may vary depending on the expertise of the provider, the complexity of the work, and if the project involves reimbursing outstanding creditors. Most practitioners will offer a fixed fee service and carrying out preliminary prep will put you in a position possible to get the best value possible for the work.

While the ‘ballpark’ amount may vary, MVL costs an average of £4k for the procedure from start to finish, including disbursements and practitioner fees. When undertaking MVL it is important to secure a projection of these costs and the potential saving that will be accrued with the money that is returned to key shareholders and stakeholders. This also allows you to save time that would otherwise be spent on administrative tasks or cause the business to fall under additional scrutiny.

How long does it take?

Unfortunately, there is no definitive timeline outlining how long a liquidation will last. Given the unique nature of a business’ composition and other complicating factors that may come into play during the liquidation process, it can be hard to correctly predict the length of time to resolve a liquidation to the required standards.

In some cases, this can take no more than seven days, but it could take up to 12 months depending on the complexity. The process is entirely dependent on the structure of business, nature, and current state of the assets in question, and the degree of support provided throughout the process.

One of the most effective ways to secure a speedy resolution is to take every step possible to prepare and streamline the process for the liquidator. At a minimum, this should involve signing a deed of indemnity and taking time to build a solid working relationship with your practitioner. This can help them get a better sense of your organisation early on in the process and give you and your teams the time required to collate the resources and information you require.

While no prediction is definitive, meeting with a liquidator and discussing the facts of your case can help them provide a ballpark figure to illustrate the amount of time involved. Once validated, this can help you and your colleagues prepare for the process and follow the timeline of progress through regular updates during the MVL program.

Once the process is underway, a skilled practitioner will be able to resolve the process at speed. If timing is an issue, this should be discussed in advance and the professional will inform you what you and your teams can do to help expedite liquidation. But, in many cases, once the process starts, it is ‘hand off’ for anyone else attached to the company.

Get in touch

If you want to learn more about MVL and the role it can play as part of your ongoing strategy, our team at Irwin Insolvency is here to help. With many years’ professional experience, we work with you to provide the care and support you need when it truly matters most.

If you have other questions or queries, please do not hesitate to get in touch directly and let our in-house team know exactly what you need to resolve your issues and deliver the peace of mind you need about the MVL process.

Contact Irwin Insolvency today for your free consultation

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About the author

Gerald Irwin

Gerald Irwin is founder and director of Sutton Coldfield-based licensed insolvency practitioners and business advisers, Irwin Insolvency. He specialises in corporate recovery, insolvency, rescue and turnaround.