A Creditors Voluntary Liquidation (CVL) is often the most appropriate solution when a company is insolvent and has no realistic prospect of recovery. It allows directors to take control of the winding-up process rather than waiting for compulsory liquidation.
In a CVL, shareholders formally resolve to wind up the company and appoint a licensed insolvency practitioner to act as liquidator. The liquidator role is to realise the company assets, investigate the directors conduct, and distribute funds to creditors in the correct statutory order.
If you are a director considering a CVL, our team at Currie Young can walk you through the process in plain English.