Members Voluntary Liquidation / Corporate Simplification

What is Members Voluntary Liquidation?

Members Voluntary Liquidation is a process used to wind up solvent companies that have ceased trading or are dormant.

How does a Members Voluntary Liquidation work?

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
  

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What are the 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 can Deloitte 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.