Members Voluntary Liquidations

Members Voluntary Liquidations

To undertake a members’ voluntary liquidation the company must be “solvent” i.e. it can pay its debts as and when they fall due and payable.

A members’ voluntary liquidation requires a special resolution of the members to wind up the company.

The defining difference with a members’ voluntary liquidation as opposed to a creditors’ voluntary liquidation is that the company has sufficient assets to pay out all creditors in full.

One of the main reasons that shareholders would consider a members’ voluntary liquidation for a company that they no longer have a need for is that they wish to have the equity of the company distributed in a tax-effective manner.

Call Artemis Insolvency today to discuss undertaking a members’ voluntary liquidation.