Members’ Voluntary Liquidation: Understanding a Signed Indemnity
What is an MVL signed indemnity? A signed indemnity permits the distribution of company funds to shareholders before the MVL process concludes officially. This ensures shareholders need not wait for months while the MVL progresses through the necessary channels to access the funds held by the company. However, if a legitimate creditor emerges after distributions […]
How much does a Members’ Voluntary Liquidation cost?
How much does an MVL cost? Approximately £4,000 is a rough estimate for the expense of a Members’ Voluntary Liquidation (MVL) handled by a licensed insolvency practitioner. Besides the practitioner’s fee, this amount encompasses additional charges called ‘disbursements’, covering Gazette fees, search fees, and a bond. Together, these constitute the overall cost of the MVL. […]
MVL vs Strike Off: Options for Solvent Companies
Understanding your options for closing down a solvent company Members’ Voluntary Liquidation, or MVL, is a commonly chosen route for company directors seeking to wind up a solvent business and release its tied-up cash. Engaging in an MVL necessitates the hiring of a licensed insolvency practitioner (IP), thereby incurring professional fees. On the other hand, […]
Solvent Liquidation: Advice for Shareholders and Directors
What you need to know about liquidating a solvent limited company If you’re looking to close down a company that’s run out of money, you’ve got two main choices: The best option for you will depend on how much cash and assets the company has. For details on closing an insolvent company, check out our […]
Members’ Voluntary Liquidation: Distribution in specie
What is meant by a distribution in specie in an MVL? During an MVL, an asset is distributed ‘in specie’ when it’s given to shareholders in its physical form rather than its cash value. For instance, property, vehicles, or stock are directly transferred to shareholders instead of being sold first, with the proceeds then distributed. […]
Defending a Winding-Up Petition
Can you get a Winding Up Petition withdrawn, stopped or dismissed? You can protect your business from a Winding Up Petition, but you need to act fast. Ignoring the petition leads to it being advertised in seven days. Your bank typically freezes your company’s account then, making trading tough. The petition goes to court next, […]
Can I wind up my own company?
What’s the most appropriate closure method for my business? Sometimes, closing your own company can be the cheapest option. It’s known as Voluntary Dissolution. After you’ve stopped trading and settled debts, you can request to remove your company from the official register at Companies House. If your company meets the criteria and there are no […]
Winding up Petitions and Orders: Process and Procedure
What is the process for issuing a winding-up petition?
What happens when a Winding Up Order is made?
What does a Winding Up Order mean and can I challenge it? A Winding Up Order is a court command that allows your company into liquidation. The High Court appoints the Official Receiver to sell the company’s assets, repay its creditors, and shut down the company. To rescue your business, you can contest a Winding […]
Defending a Winding Up Petition: Can a Winding Up Petition be withdrawn?
What steps can you take to stop a Winding Up Petition? If a Winding Up Petition has been issued against your company by a creditor, you’re in a risky position. Ignoring the petition and hoping it disappears greatly increases the chance of your business being wound up by the court and liquidated. Fortunately, there are […]