Overview

When a company enters a Members’ Voluntary Liquidation (MVL), the directors and shareholders play a central role in making sure the process runs smoothly and certain information is required. To make this easier, Parker Walsh provides a comprehensive questionnaire that can be completed by the directors themselves, the company’s accountant, or the bookkeeper, essentially whoever is most familiar with the company’s financial affairs.

Personal details of directors and shareholders

We will first require the personal details of all directors and shareholders, including their full names, addresses, telephone numbers and email addresses. Since the shareholders are the ones who will ultimately receive the distribution of any surplus funds in a solvent liquidation, we will also need their bank account details so that payments can be made directly to them. For security purposes, one of our colleagues will always contact each shareholder to verify these details before any transfers are arranged.

Company bank accounts

In addition to shareholder information, we will need details of the company’s bank accounts. This includes the account name, sort code, account number, the current balance and any overdraft facilities in place. Once Parker Walsh is formally appointed, we will write to the company’s bank and request that the credit balance be transferred into an estate bank account that we have specifically opened in the company’s name. This estate account is entirely separate, ensuring that only company funds are handled within it and that all transactions are reconciled regularly throughout the process.

Director’s loan accounts

Another important area relates to director’s loan accounts. Where a director’s loan account is overdrawn, we will need the amount. In the context of a solvent liquidation, and particularly where the directors and shareholders are the same individuals, the balance can often be settled by way of distribution in specie. This means that the repayment is dealt with through legal documentation that we prepare, rather than requiring a cash repayment followed by a further distribution to the shareholder.

HMRC information

We will also need information relating to HMRC. This includes the company’s VAT registration number, Corporation Tax reference and PAYE reference, together with details of any amounts owed, if applicable. While it is not necessary to obtain formal clearance from HMRC before the liquidation can be concluded, it is vital that all company returns are properly submitted and brought up to date.

Company assets and other matters

Finally, Parker Walsh will ask for information on any remaining company assets that must be dealt with during the liquidation. This might include savings accounts, property, investments or outstanding refunds that are due to the company. Any additional matters specific to the company’s circumstances should also be disclosed so that they can be addressed appropriately.

Conclusion

Providing thorough and accurate information at the outset ensures that the MVL proceeds efficiently. Completing the questionnaire we provide is the simplest way to gather everything required. Our team is always available to guide directors and shareholders through the process and to answer any questions they may have along the way.

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