Creditors Voluntary Liquidation
What is a Creditors’ Voluntary Liquidation (CVL)?
Unlike involuntary Liquidation, which is often the result of creditor enforcement action, a CVL is a voluntary process initiated by the company’s directors. It allows the business to address its debts and conclude its affairs in a structured manner.
The CVL Process: Step by Step
- Step 01
- Step 02
- Step 03
- Step 04
- Step 05
- Step 06
- Step 07
- Step 08
Contact Parker Andrews for a confidential discussion about your company’s financial situation. Our team will review your circumstances and outline the options available.
If needed, a meeting with you, your Board of Directors, and one of our Licensed Insolvency Practitioners will be arranged to delve deeper into your situation and decide on the best course of action.
Once you decide to proceed with the Liquidation, you’ll formally engage Parker Andrews. We’ll become the point of contact for creditors and customers, handling correspondence on your behalf.
You will receive a fact-find document to help us prepare for the members and creditors’ meetings. We’ll also request any financial records to assist in this process.
We will prepare and send notices for the meetings of members and creditors and place an advert in the London Gazette.
Our team will assist in preparing a Statement of Affairs and a report for the creditors’ meeting, based on the financial information you provide.
The members’ meeting will pass resolutions to wind up the company and appoint a Liquidator. The creditors’ meeting will ratify the appointment and address any queries.
After the company enters Liquidation, the Liquidator completes statutory duties, realises assets, and reports to creditors before the final meeting concludes the Liquidation.
What are the benefits of choosing a CVL?
A CVL provides a controlled and orderly process to wind up a company, ensuring fair treatment of creditors and reducing director liabilities.
How will a CVL affect my role as a director?
Directors lose control of the company once the CVL process begins, but it can protect from personal liabilities associated with the company’s debts.
What should I prepare for the CVL process?
Prepare financial records, including assets and liabilities details, and be ready to discuss your business’s situation in depth.
Facing financial difficulties?
If your company is facing financial difficulties and you’re considering a Creditors’ Voluntary Liquidation, contact Parker Andrews for expert guidance and support. Our experienced team will assist you through every step of the CVL process. Get in touch with us for a confidential consultation today.
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