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What is a Members’ Voluntary Liquidation?

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Simple Liquidation
What is a Members’ Voluntary Liquidation?

Sometimes you can face the situation where it is not feasible to carry on the business activities even when a company is a solvent. In such circumstances, MVL is one of the best options in the hands of the directors of such companies. It is a useful tool that can help you shut the operations of limited companies or limited liability partnerships.

We can also refer to MVL as solvent liquidation where the company is not facing any financial distress or pressure from the creditors to pay debts. The reason for such liquidation can be future technologies, outdated processes, or even no time with management to focus on the company’s affairs. Directors and shareholders can work to extract the maximum assets or cash from the business without paying huge taxes to the state.

When Might you Consider a Members’ Voluntary Liquidation?

MVL can be used as a way to extract maximum fortunes from a closing business in a very tax-efficient manner. It is one of the most suitable ways that can also help you get eligible for the member's voluntary liquidation entrepreneurs relief.

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