There are several reasons for not wanting to run a company any longer - even if it is solvent. This page explains the process of members' voluntary liquidation.
MVL GUIDE: Members can choose to liquidate their own company.
But, the business must be able to pay its debts 'trading solvently' and one of these reasons must apply:
Company shareholders must pass a resolution before they apply for members’ voluntary liquidation. That means you must:
Note: The current company assets and its liabilities will need reviewing before you make the declaration.
A declaration of solvency is a statement written by the directors. They declare that they have assessed the company and it can pay all its debts.
This must apply even with any interest added at the official rate. A declaration of solvency should include:
Members who want to wind up a company voluntarily still have a few more steps to complete. After signing the declaration or the form you should then:
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Note: The appointment of a liquidator means they take control of the company from then on. That also means the directors' responsibilities change at the same time.
Liquidate a Company: The key aspects to consider when liquidating your limited company.
Compulsory Liquidation: How company directors can apply to the court for a winding up order.
Creditors' Voluntary Liquidation: CVL involves creditors because the company cannot pay its debts.
What Does a Liquidator Do? A liquidator is the official receiver who conducts the liquidation process.
What happens to Directors? How liquidation affects the directors if a liquidator gets appointed.
Members' Voluntary Liquidation Process: How to Liquidate a Solvent Company in the United Kingdom