A Creditors Voluntary Liquidation (CVL) is the winding up of an insolvent company.

  1. A CVL is initiated by the Directors and Shareholders, who decide the company is insolvent, and pass a resolution to this effect (and also appoint a liquidator).
  2. The directors nominate a Licensed Insolvency Practitioner to assist in this process and accept the appointment as Liquidator.
  3. These directors pass a resolution that a meeting of the company’s shareholders(known as members) be convened for the purpose of passing resolutions to wind up the Company and appoint a liquidator.
  4. The approval of creditors is sought on the appointment of liquidator either by deemed consent or virtual meeting of creditors.
  5. At the meeting of members the resolution to wind up the company must be approved by a 75% majority of members voting at the meeting, either in person or represented by proxy.
  6. The company ceases to trade and any assets will be realised by the liquidator for the benefit of creditors.

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