Often referred to as ‘winding up’, a Creditors’ Voluntary Liquidation (“CVL”) is the most common corporate insolvency procedure. A liquidator is appointed to realise the company’s assets and distribute the proceeds in a prescribed order of priority.

A CVL is used in circumstances where a company is insolvent, and there is little prospect of the business being preserved as a going concern.

For many small companies in financial difficulty, a CVL will be the most appropriate procedure.  There may not be any prospect of preserving the business, or the directors may not wish to continue for a variety of reasons, but are concerned to ensure that they act responsibly.  The insolvency of a company is a very stressful time for everyone involved, whether directors, employees or creditors.  We can assist in taking away the pressure, ensuring that the respective rights and duties of all parties are treated properly, and that the correct steps are taken to wind up of the company’s affairs in an orderly and balanced manner.