A CVL is a Director controlled process and is the most common way for Directors of a company to deal with the company's insolvency.
Directors will resolve that the company cannot continue to trade and will engage the services of an Insolvency Practitioner to assist them in placing the company into liquidation. They will convene meetings of both shareholders and creditors (typically held on the same day).
At the meeting of shareholders resolutions will be passed placing the company into liquidation and appointing an Insolvency Practitioner.
This meeting is followed by a meeting of creditors who may attend and vote. Creditors may choose to accept the shareholders choice of Liquidator or to replace him with an alternative.
Once appointed the Liquidator will deal with the affairs of the Company and will look to realise the company's assets and distribute these amongst its creditors.
The Liquidator will deal with all creditor queries and all other matters relating to the company.
To discuss a CVL and the alternatives please book a free, confidential, no obligation meeting by calling one of our experts at Currie Young on 01782 394500.