Members’ Voluntary Liquidations

This procedure can be used when the shareholders of a solvent company want an orderly close down of the company. The procedure is often used when the company no longer has a purpose or the director/shareholder is about to retire. It is particularly popular due to the generous tax benefits available to shareholders which are not available under the ‘striking-off’ regime; by way of the potential application of Business Asset Disposal Relief (‘BADR’) (formerly Entrepreneurs’ Relief). Shareholders will have to satisfy themselves as to the application of BADR by speaking with their personal tax accountant, prior to embarking on a solvent liquidation.

Following appointment, the liquidator usually realises any assets, pays any remaining debts, deals with the company’s tax issues, distributes the residual funds to the shareholders and files reports at Companies House. CMB Partners will try and ensure the earliest distribution of funds to shareholders. Following the filing of the liquidator’s final account, the company is dissolved.