CVL

A creditor's voluntary liquidation (CVL) is the formal process of closing an insolvent company.

A company is insolvent if its liabilities exceed its assets and/or cannot pay its debts as and when they fall due.

A CVL is the usual procedure to place a company into liquidation and is a voluntary process instigated by the directors of the company however it is the company’s shareholders who pass the relevant resolutions to place the company into liquidation and appoint a liquidator.

The liquidators' duties are to realise the company’s assets, investigate the affairs of the company, agree on creditors' claims, distribute any funds and report to creditors on the conduct of the liquidation.

If you experiencing increased creditor pressure or the company’s cash flow position is becoming more unstable and the viability of the company is becoming more uncertain then directors must take advice as quickly by contacting the team at Hart Shaw.