This is solvent liquidation which the liquidator is appointed by the shareholders and the company’s assets are sufficient to settle all its liabilities, including interest within twelve month. The Members Voluntary Liquidation is usually legated when the company comes to the end of its useful life and the directors wish to retire or work on new projects. The procedure is for benefit of shareholders whereby the value of the assets of the company are passed to them either in money or in specie. The directors usually utilise a Members Voluntary Liquidation for tax purposes in that the rate of tax suffered by shareholders from the sale of the business would be much less than if the proceeds of business were received via a dividend.
Sinclair Harris has conducted solvent Liquidations for stand alone companies and groups of companies.
