A Creditors Voluntary Liquidation (CVL) is the winding up of an insolvent company.
- 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).
- The directors nominate a Licensed Insolvency Practitioner to assist in this process and accept the appointment as Liquidator.
- 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.
- The approval of creditors is sought on the appointment of liquidator either by deemed consent or virtual meeting of creditors.
- 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.
- The company ceases to trade and any assets will be realised by the liquidator for the benefit of creditors.
Download further information here Creditors Voluntary Liquidation