If your business is carrying unmanageable debt and cannot be rescued, Creditors’ Voluntary Liquidation offers you the best way out of the situation. It allows you to execute your legal duties as a director of an insolvent company, which is an important consideration in these circumstances.
As with solvent liquidation, CVL also requires a licensed insolvency practitioner to be appointed to carry out the process. This involves selling business assets at a liquidation auction and distributing the proceeds amongst creditors according to the statutory ranking.
Although your actions as a director will be investigated during a CVL, by voluntarily closing your company in this way you reduce the chances of wrongdoing or misconduct accusations being made against you.
Company Closure can provide further advice on closing a limited company in the UK, tailored to your circumstances. We offer free, same-day consultations and operate a broad network of offices nationwide. Please get in touch to find out more.