If your company is solvent, meaning it can pay all its liabilities in full, but you no longer need it, a Members’ Voluntary Liquidation (MVL) could be the most tax-efficient way to close it down. Some directors choose to dissolve their company via Companies House, but this isn’t always the best route, especially if there are significant funds to distribute. Speaking with your accountant first is always a good idea, and if you decide an MVL is right for you, Molly Monks of Parker Walsh can guide you through every step.

What Is a Members’ Voluntary Liquidation?

An MVL is a formal process designed specifically for solvent companies. It allows you to close the company in an orderly way, pay off any liabilities, and distribute the remaining funds to shareholders efficiently and often in a tax-friendly manner. Unlike informal dissolution, an MVL provides certainty and protection for everyone involved.

As a licensed Insolvency Practitioner, Molly can assist you throughout this process, ensuring that every stage is handled correctly and smoothly, so you don’t have to worry about the details.

How the MVL Process Works

The first step is an informal consultation, by way of a virtual or in person meeting or a telephone call, so Molly can introduce herself and to talk about your company, why it’s no longer needed, and what you want to achieve. There’s no obligation to proceed, you can simply explore your options. After the discussion, Molly will provide a clear summary in writing, along with any useful resources, so you have everything in one place. If you have questions or need to go over anything again, further calls or meetings can be arranged.

Once you decide to proceed, the next stage is verification and engagement. This is a standard step to comply with anti-money laundering rules, where directors and shareholders holding 25% or more of the company’s shares provide ID and proof of address. Once these checks are complete, Molly will issue an engagement letter, which formally appoints her to act as your liquidator. The letter also contains guidance on the process and practical tips, and her team is always available to answer questions along the way.

Following this, the Company Information Questionnaire is completed. This collects key details about directors and shareholders, bank accounts for fund distribution, tax references, VAT numbers, and any remaining assets. The questionnaire can be completed by you, by your accountant or bookkeeper, or with Molly’s assistance and her case administrator.

Once the information is collected, Molly prepares all the necessary legal documentation, including the Declaration of Solvency. A video call is arranged to walk you through everything, and the paperwork is signed while a solicitor witnesses the declaration. After this, relevant parties, including shareholders, are notified that the company is entering a Members’ Voluntary Liquidation. A brief, routine meeting finalises the process, and the company officially enters liquidation. Throughout, Molly ensures everything is handled professionally and in accordance with legal requirements.

Making It Simple and Stress-Free

The MVL process can feel daunting, but Molly’s role as a licensed Insolvency Practitioner is to make it straightforward and stress-free. You can ask questions at any stage, request extra meetings, and take the time you need to understand everything fully. Molly’s goal is to guide you through the process efficiently, professionally, and with confidence.

Summary: How to Place a Company into MVL

1. Initial informal consultation

2. ID verification for directors and qualifying shareholders

3. Issue and sign the engagement letter

4. Complete the Company Information Questionnaire

5. Sign all legal documentation (with solicitor witnessing)

6. Notify stakeholders and formally enter liquidation

Final Thoughts

Closing a solvent company is a big decision, but with the right guidance, it doesn’t have to be complicated. Discuss your situation with your accountant first, and if an MVL is the right solution, Molly Monks of Parker Walsh can assist every step of the way. With Molly’s support, your company can be closed in a compliant, orderly, and tax-efficient manner, giving you peace of mind and a clear path forward.