A Compulsory Liquidation is where the Court makes a Winding Up Order and an Insolvency Practitioner is appointed (usually the Official Receiver) to place the company into liquidation.
Compulsory Liquidation
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Sometimes, it is inevitable that a company will need to close. We will make sure that all avenues are explored and advise on the most appropriate closure route.
If a company cannot pay its debts as and when they fall due and have more liabilities than they do assets, then the company will be deemed insolvent. At this stage it is better to take action as any delays could result in the position getting worse, some options running out and potential liabilities to the directors.
Sometimes, it is inevitable that a company will need to close. If it is at this stage, we will make sure that all other avenues are explored and then advise on the most appropriate closure route.
We understand that there will be job losses and lots of mixed emotions from all people connected with the firm. This is particularly difficult if it is a family business.
There may be liabilities that directors of other key persons will become responsible, such as a personal guarantee from the bank. We will take all this into account.
Whatever way a company is closed, at Revive Business Recovery we make sure that this is done with decorum and professionalism in a timely manner.
We also offer useful material that can help you understand your current situation:
Creditors Voluntary Liquidation (CVL)
A CVL is where the directors instigate the procedure. They are effectively holding their hands up and saying the company cannot survive and needs closing. We have streamlined this as much as possible.
Members Voluntary Liquidation (MVL)
When the shareholders of the solvent companies decide to close the company, if the distribution is likely to be more than £25,000, it is necessary to use the MVL procedure.
