Why do I need a solvent liquidation?
Members’ voluntary liquidations (“MVLs”) or solvent liquidation have to be administered by a licensed insolvency practitioner. We have set out below some of the circumstances where a solvent liquidation is sometimes required;
- Looking to retire
- There has been a breakdown in the relationship with the shareholders
- Looking to restructure the business and we can work alongside you in S110 Reorganisations
- Ceasing to trade and have reserves to distribute
We have set out below our top tips for planning ahead for a MVL. Planning ahead will reduce the costs of the MVL process and ensure quicker distributions are made to you, the shareholders. Prior to initiating the MVL process we suggest that;
- All assets are identified and realised
- Any corporation tax returns, VAT returns and payroll returns are submitted up to date
- Any creditors are identified and paid
- The company is released from all warranty, guarantee and lease obligations
- Any run-off insurance cover been arranged and paid for
- Any pension scheme has been dealt with
Why? The above needs to be undertaken and it is often far cheaper for the directors to work with their accountants to ensure this is done rather than incurring the extra costs asking the insolvency practitioner to complete these tasks.
To take advantage of our free consultation, please telephone contact John Butler on 01377 257788, 01724 230060 or 01904 520116.
Redman Nichols Butler has offices in Driffield, Scunthorpe and York and specialises in advising SME businesses in York, North Yorkshire, West Yorkshire, Hull, East Yorkshire and Lincolnshire.