What are the Benefits of a CVL?

A company can be placed into Creditors Voluntary Liquidation within a matter of days.  Creditor pressure can be removed, legal action can be prevented and your general concerns and worries can be bought to an end.

Our team will:

• Bring an end to the pressure from all your creditors as all correspondence and calls can be directed to us
• Our Practitioners and team will manage the disposal and sale of assets and any payments to creditors
• Where relevant our team will process your former employees’ claims to ensure that any payments due to them from the Government will be made in a timely manner.

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What happens next?

Once you have taken that first step and you are happy with the advice received then you would formally instruct Easy Liquidation to commence the process of placing the company into CVL. It is worth noting that the process is the same regardless of the size of company and that it is not uncommon for the company to have only one director/shareholder.

We will send you our engagement letter, terms of business and Money Laundering requirements to you by email for signing.  Once our in checklists have been completed we will provide you with a list of all the information that we will need together with our invoice.

The information we require will include names, addresses, reference numbers and amounts owed to all creditors so that we can advise them of the liquidation.

The first step of the process is a board meeting. A draft agenda, matters to be considered and draft minutes will in practice be provided by the IP and the meeting will predominately agree the following:

• The date and time of the decision procedures for shareholders and creditors
• The director to be appointed as the convener of the decision procedures (a director acts as the convener)
• The directors to be responsible for verifying a Statement of the company’s assets and liabilities (a majority of those appointed is required).
• At the end of the board meeting the appointed director will be required to sign notices to the shareholders and creditors detailing the proposed winding-up and inviting them to participate in the decision.

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At the end of the board meeting the appointed director will be required to sign notices to the shareholders and creditors detailing the proposed winding-up and inviting them to participate in the decision.

The resolutions will then be circulated to shareholders in order to consider whether or not the company should be placed into Liquidation and the appointment of the Liquidator (IP) nominated by the board.

For the company to be placed into Liquidation, 75% or more of the shareholders must agree to pass the resolution.

Immediately following these resolutions being passed, creditors will be invited to validate the appointment of the shareholders’ Liquidator (or to nominate their own) and where appropriate to agree the Liquidators costs.

One of two decision procedures will be implemented:

• A virtual meeting whereby creditors are invited to attend through an IT platform i.e. conference call or video meeting eg Teams or Zoom.
• Deemed consent whereby the appointment of the Liquidator is accepted by the creditors unless 10% in value of claims, 10% in number of creditors or 10 individual creditors object to that procedure. Under these circumstances physical creditors meeting will be convened to consider the appointment of the Liquidator. The Liquidator’s costs cannot be agreed by way of deemed consent and so a decision by correspondence may be issued at the same time.

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In practice, the shareholders meeting and the meetings of creditors will be scheduled for the same date, 15 minutes apart.