Members Voluntary Liquidation

Purpose & How it Works

If a company is solvent and no longer trading or required, then the directors and shareholders can place it into a Members Voluntary Liquidation to formally bring the affairs of the company to an end. Such situations can occur with intergenerational companies that have served their purpose or where a company that has sold its business and the structure is no longer required, as well as many other instances.

Benefits:

• The directors and shareholders of the company can effect the appointment within two (2) business days generally.
• It is the Liquidator’s role to realise the company’s assets and distribute the money to the shareholders. In some circumstances it may be possible to distribute the assets in specie.
• There may be certain tax benefits of performing this type of liquidation regarding distributions from the company (i.e. CGT).
• There may also be other benefits of this type of liquidation, particularly in circumstances where the company traded in a particular high-risk industry. A formal liquidation of this type can be more appropriate than a deregistration.

Jones Partners have a streamlined approach to initiating these appointments, as well as acting on more complex liquidations where there are significant assets to be dealt with and also taxation and shareholder considerations.