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How to exit a solvent company

A Members’ Voluntary Liquidation (MVL) is a procedure that allows a solvent company to voluntarily place itself into liquidation to distribute its assets amongst its shareholders after all of the company’s creditors have been paid in full.

The MVL process is used to liquidate solvent companies using the most tax-efficient schemes available for both the corporate entity and its shareholders.  The procedure allows a solvent company to voluntarily place itself into liquidation to distribute its assets amongst its shareholders after all of the company’s creditors have been paid in full.

MVLs are an effective means of closing and winding-up the affairs of solvent companies and are often used to capitalise on available tax reliefs.

There are certain rules that must be followed to ensure this procedure works correctly, for example all of the company’s creditors must be paid within 12 months of the date of liquidation.

Most large groups of corporate entities own dormant companies that simply add no value to the group as a whole and are likely to cost the group in compliance costs. Our experienced team can deal with MVLs either as individual cases or in multiples for group reconstruction.

We can also advise on Section 110 schemes where companies use the MVL procedure to enable corporate reconstructions, where assets or part of the businesses’ activities are separated using tax efficient procedures.

Download our solvent exits brochure