Members' voluntary liquidation

What is an MVL?

Voluntary liquidation or winding-up is a process in which the company, through the resolution of its members, decides to end the activities of the company and move towards the eventual dissolution of the company.

A members' voluntary liquidation, commonly referred to as an MVL, is appropriate only where the company is solvent. If the company is insolvent, a creditors’ voluntary liquidation (CVL) or compulsory liquidation must take place. For further information on CVL and compulsory liquidation, see:

•
Creditors' voluntary liquidation (CVL)—overview
•
Compulsory liquidation—overview

A MVL is typically used where a solvent company has served its purpose and its members no longer wish to retain it as a corporate entity. It is also used where members wish to get back their investment in a solvent company. For further information on when a MVL is appropriate, see Practice Notes:

•
Liquidation—an introductory guide
•
What is a members’ voluntary liquidation and when is it typically used?

For a discussion of MVL versus striking off, see Practice Note: MVL versus striking off.

Statutory declaration of solvency

A company enters

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