The CVL Process
The company is insolvent satisfying the cashflow and/or balance sheet tests
Directors Hold a Board Meeting to Resolve to Place the Company into Liquidation and Nominate their choice of Liquidator
The Directors instruct an Insolvency Practitioner to advise if this is the correct regime and assist with the necessary paperwork. The Directors hold a Board Meeting to resolve to place the company into CVL and nominate their choice of Liquidator. The Board Meeting will also resolve to convene a meeting of the company’s members to seek the appropriate winding up resolutions.
Notice of the proposed Liquidation is sent to Creditors and Members
The company’s articles will state the notice period required to be given to members, however the meeting can be held at shorter notice if members consent. The creditors are provided with 3 business days’ notice for the decision on the appointment of the Liquidator
Creditors are Provided with a Statement of Affairs
The creditors will receive a report detailing events leading to the board meeting and a statement of affairs showing the company’s present financial position. The nominated Liquidator assists the Directors to prepare these.
Hold a Members’ Meeting
At this meeting they will be asked to pass a resolution placing the company into Liquidation and to appoint a Liquidator.
If there are no objections
The Choice of Liquidator is Ratified
If the creditors raise no objections to the members’ choice of Liquidator, the appointment is ratified.
Physical meeting requested
A Meeting is Needed to Decide Various Matters including Seeking an Alternative Liquidator
The creditors may instead ask for a physical meeting to be convened. At that meeting they may be able to seek to replace the nominated Liquidator with their own choice. Whether or not the creditors can seek a physical meeting and/or have their own choice of Liquidator is determined by statutory rules.
Benefits of using us
SFP is an Award winning Insolvency company that provides expert assistance in Turnaround and Restructuring services.
Choosing the right practitioner from the start will have major implications on any case and here at SFP we will take the time and effort to look into your business accordingly.
Having worked with a large number of clients over the last 18 years, we pride ourselves on being a trusted partner to UK businesses who are looking to survive in what is becoming an ever-increasingly challenging business economy.
Get in touch with one of our experts and they will:
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- Analyse your business finances to realise your current scenario
- Help you understand available restructuring options
- Recommend, define and agree the way forward
- Support you through all processes as a result of your taken actions
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