MEMBERS VOLUNTARY LIQUIDATION - MVL
A Members Voluntary Liquidation (MVL) is applicable where a company is solvent, has served its purpose and has no further function or where the directors would like to retire. In addition, a MVL can help directors release shareholder capital in a very tax efficient manner. It should also be remembered that the company must have sufficient funds to discharge its liabilities within 12 months from the commencement of the winding up. However, where a company has no accumulated liabilities then it should be possible to conclude the winding up within approximately 3 to 6 months of the commencement.
To initiate the process of MVL the directors must sign a declaration of solvency in accordance with Section 207 of the Companies Act, 2014.
The declaration will include a statement of the company’s assets and liabilities as of the latest practicable date before making the declaration.
All statutory documents must be completed and filed in the Companies Registration Office.