Members’ Voluntary Liquidation is the process of closing down a company that is solvent. This means that a company must be capable of meeting its financial obligations, such as tax and wages, and the value of its assets exceeds the total sum of all its debts and liabilities. (Assets can include company equipment, vehicles, stock, contracts, invoices, bank account funds and property).
If this is not the case and the company is insolvent, then a Members’ Voluntary Liquidation is not viable and it must instead be put through a Creditors’ Voluntary Liquidation. During a Members’ Voluntary Liquidation, the role of the liquidator would be to close down the company, ‘liquidate’ company assets, and distribute the proceeds amongst company members.