Post-Appointment Procedure
A CVL is the process whereby the Winding-Up of the company is
initiated by a resolution of the members of the company rather than by
an Order of the Court.
There are two types of Voluntary Winding-Up, namely:
- Members Voluntary Winding-Up
- Creditors Voluntary Winding-Up
A Members Voluntary Winding-Up can bi utilised where the directors have made a formal declaration that the company is solvent. Every other Voluntary Winding-Up is a Creditors Voluntary Winding-Up.
Summary of CVL Procedure
| Notice & Proxy Forms | Notice and Proxy Forms must be sent to shareholders and creditors seeking a resolution to place the company into liquidation |
| Advertising | A Creditors meeting is advertised in The London Gazette and two appropriate newspapers |
| Shareholders Meeting | A Shareholders Meeting is held first and an Extraordinary Resolution must be passed to wind-up the company and an Ordinary Resolution is passed to appoint a Liquidator |
| Creditors Meeting | A
Creditors Meeting must be held. This must be within 14 days of the
passing of the shareholders resolution but normally follows immediately
after the Shareholders Meeting. At the Creditors Meeting a Statement of Affairs and report on the history of the business and causes of the insolvency should be presented. The shareholders choice of Liquidator can be changed by the creditors, who can either confirm the shareholders choice or vote for an alternative Liquidator. Voting is by value of debt. |
| The Liquidator | The duties of a Liquidator are, as with Compulsory Liquidation, to realise the assets, investigate the company's affairs, agree creditors claims and distribute the funds |