Acting early can help companies get through financial distress
Publication of A Practical Guide to Insolvency by Deloitte
Members voluntary liquidation
What is a Members Voluntary Liquidation?
Members Voluntary Liquidation is a process used to wind up solvent companies that have ceased trading or are dormant.
How a Members Voluntary Liquidation works
The directors and shareholders of the company decide to put it into liquidation and appoint a liquidator via a board meeting and an EGM.
Once appointed the liquidator will:
- Pay any outstanding creditors
- Ensure all tax returns are brought up to date
- Obtain tax clearance from the Revenue Commissioners
- Distribute any surplus funds to the shareholders
- Call a final meeting of the shareholders to dissolve the company
Advantages of a members voluntary liquidation:
- Savings on ongoing audit and accounting costs
- Savings in management time previously taken up with the preparation of financial information and tax returns
- Reducing risk to the company and its directors by avoiding corporate memory loss. This can happen when a company is being inactively maintained
- Often used as part of a corporate simplification process where a group wants to streamline its corporate structure
- Can be a very tax efficient method of distributing cash/ assets to shareholders
- Averts the danger of an inactive company being involuntarily struck off which can result in the loss of a company’s limited liability protection.
How we can help
Our Members Voluntary Liquidation experts can guide you through all aspects of the Liquidation process by:
- Assisting you in putting a company into liquidation
- Acting as liquidator of the company
- Providing a comprehensive, low cost, service that is excellent value for money
- We regularly act as liquidators for companies of all sizes in all sectors of the economy.