Members Voluntary Liquidation (MVL) for Business

Members Voluntary Liquidation

Support For A Strong Future

You need to carefully plan the winding up of a solvent company and might also require guidance during the process. At Roger and Carson, our team specialises in MVL liquidation to help you go through the members voluntary winding up process with ease.

Trust Roger and Carson to provide the best professional support and expertise you need during this important transition.

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What is a Members Voluntary Liquidation?

When solvent corporations seek to wind down their activities, they normally use the Members Voluntary Liquidation process. In this technique, the company’s members decide to cease trading and wound up the business in a planned manner.

This method is simple and cost-effective and does not need the creditors to be involved.

During a Members Voluntary winding up, the directors decided to sell off the company’s assets or distribute them to pay off shareholders and any remaining creditors.
This makes sure that all financial obligations are met before the business is officially closed.

The Members Voluntary Liquidation Process

Company Decision

In the first step, the directors will arrange for a meeting to close the company through a members voluntary liquidation resolution.

Solvency Declaration

Once the directors decide to close the company, they will have to sign a Declaration of Solvency saying that the company can pay its debts within 12 months.

Lodging with ASIC

Once the directors have signed the Declaration of Solvency, it is then sent to ASIC.

Wind Up Meeting

Members hold a meeting to pass resolutions for closing the company. A liquidator is appointed, and their payment is confirmed. At least 75% of members must agree to go ahead with this.

Appointing a Liquidator

A liquidator is appointed to manage the members voluntary liquidation process. The liquidator, like one from Roger and Carson, will be responsible from then onwards to handle tasks like notifying parties, filing tax returns, selling assets, distributing any remaining funds to shareholders and paying creditors.

Final Meeting and Closure

Once everything is settled, the liquidator calls a final meeting with one month’s notice and files a final report with ASIC. The process ends after all debts are paid and any leftover funds are distributed to members.

Why Go For Members Voluntary Liquidation?

Viability Issues

Sometimes a solvent company might not have a promising future or development prospects. The directors may decide it is best to stop trading and close the firm through an MVL liquidation.

Lifestyle Changes

Directors may experience lifestyle changes like relocating to another nation, desiring to pursue a different job, or planning for retirement. These changes may prompt them to voluntarily close the company.

Tax Benefits

This is a tax-efficient way to distribute the company's assets to shareholders.

Sale or Transfer of the Company

If the company's assets are sold or transferred to a third party, the corporation may no longer be needed. If the company does not meet the requirements for voluntary deregistration, an MVL liquidation may be the best option.

How Can Roger and Carson Help?

At Roger and Carson, our team works tirelessly to ensure that the members voluntary liquidation procedure runs smoothly and efficiently for you. We specialise in cost-effective ways to assist you in managing expenses while realising the benefits of MVL liquidation.

We manage the entire process, from the first decision to wind up your firm to the final asset distribution, ensuring that creditors are paid and remaining monies are given to shareholders.

Roger and Carson provide individualised service geared to your company’s specific needs, assuring a successful and orderly closing.

Schedule a Call with Us

If you want to know more about the Members Voluntary Liquidation process, contact us today to speak to our experts. You can also call us at (02) 8046 7588 to schedule an appointment and explore your options.

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Get Started Today

Before liquidating your company, contact us for free consultation and a quote. Roger and Carson is here to help you every step of the process

FAQ

How long does Members’ Voluntary Liquidation take?

The Members Voluntary Liquidation process typically takes between 6 to 12 months. The exact members voluntary liquidation timeline depends on factors like how complex are the company’s affairs, the time required to sell assets, the settling of debts and distributing the remaining funds to shareholders.

What is the difference between a creditors’ voluntary winding up and members’ voluntary winding up?

The key difference between a creditors’ voluntary winding up and a members’ voluntary winding is the members' voluntary winding-up process is simpler; the firm is solvent, and creditors are not engaged.

Enquiries

Where to find us

Level 35, One International Towers 100 Barangaroo Avenue SYDNEY NSW 2000

105, 33 Lexington Drive BELLA VISTA NSW 2153

Email us at

info@rogerandcarson.com.au

Call us at

(02) 8046 7588