Members voluntary winding up.
Understand the Problem
The question is likely asking about the concept of 'members voluntary winding up,' which is a process used in company law where members of a company decide to dissolve the company voluntarily while ensuring that its debts are paid off. This process involves the members' resolution and compliance with certain legal procedures.
Answer
A process to wind up a solvent company, paying all debts and distributing remaining assets to shareholders.
A Members' Voluntary Liquidation (MVL) occurs when shareholders decide to wind up a solvent company, ensuring all assets can cover debts. A declaration of solvency is required.
Answer for screen readers
A Members' Voluntary Liquidation (MVL) occurs when shareholders decide to wind up a solvent company, ensuring all assets can cover debts. A declaration of solvency is required.
More Information
Members' Voluntary Liquidation (MVL) allows the distribution of company assets to shareholders in a tax-efficient manner if the company is solvent.
Tips
Ensure that the company is solvent and able to pay all debts before proceeding with a MVL.
Sources
- Overview of Members' Voluntary Liquidation and Deregistration of ... - Baker McKenzie - bakermckenzie.com
- Liquidate a company you do not want to run anymore - GOV.UK - gov.uk
- Members' voluntary liquidation - Practical Law - uk.practicallaw.thomsonreuters.com
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