How It Works

A Creditors’ Voluntary Liquidation, or CVL, is appropriate when a company is no longer viable and cannot overcome its financial difficulties. It represents the end of the company and is the procedure used to wind up its affairs.

SFP will guide you through the whole process, here is how it works:

What is the CVL process?

Directors Hold a Board Meeting to Resolve to Place the Company into Liquidation and Nominate their choice of Liquidator

The Directors instruct an Insolvency Practitioner to advise if this is the correct regime and assist with the necessary paperwork. The Directors hold a Board Meeting to resolve to place the company into CVL and nominate their choice of Liquidator. The Board Meeting will also resolve to convene a meeting of the company’s members to seek the appropriate winding up resolutions.

Notice of the proposed Liquidation is sent to Creditors and Members

The company’s articles will state the notice period required to be given to members, however the meeting can be held at shorter notice if members consent. The creditors are provided with 3 business days’ (+ postage allowance) notice for the decision on the appointment of the Liquidator

Creditors are Provided with a Statement of Affairs

The creditors will receive a report detailing events leading to the board meeting and a statement of affairs showing the company’s present financial position. The nominated Liquidator assists the Directors to prepare these.

Hold a Members’ Meeting

At this meeting they will be asked to pass a resolution placing the company into Liquidation and to appoint a Liquidator.

Creditors Consent to Liquidator’s Appointment

Deemed consent is sought from creditors to confirm the Liquidator’s appointment


The Choice of Liquidator is Ratified

If the creditors raise no objections to the members’ choice of Liquidator, the appointment is ratified.




A Meeting is Needed to Decide Various Matters including Seeking an Alternative Liquidator

The creditors may instead ask for a physical meeting to be convened. At that meeting they may be able to seek to replace the nominated Liquidator with their own choice. Whether or not the creditors can seek a physical meeting and/or have their own choice of Liquidator is determined by statutory rules.

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