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Is Member's Voluntary Liquidation (MVL) Right for You?

Members voluntary liquidation

“You are operating a successful company, and for various reasons, you’ve decided to shut it down or cease trading. You’re also unsure if a formal liquidation is the best course of action.”

If this scenario sounds familiar, a member’s voluntary liquidation (MVL) might be a suitable solution for your company. There are several financial and other benefits to closing your company with the assistance of a liquidator. One of the most common advantages is the potential for tax savings when distributing past profits to shareholders, as well as the assurance that your company will be closed correctly.

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A member's voluntary liquidation is the formal process by which a company's assets can be distributed to its creditors and shareholders under the control of a liquidator. Engaging a liquidator in this process ensures that your company's affairs, including its tax affairs, are finalised in accordance with the relevant laws and regulations, and the company can be deregistered without you worrying about whether you've completed all the necessary steps.

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It's essential to note that an MVL can only be used when a company is solvent, meaning it can pay its debts (including shareholders' loans) in full within 12 months of the commencement of the winding-up process. To be eligible for an MVL, the company's directors must be prepared to pass a resolution stating that the company is solvent because it can pay all its debts within 12 months.

Maximise returns to Shareholders with efficient Members Voluntary Liquidation

BENEFITS OF WORKING WITH US

A Members Voluntary Liquidation (MVL) is a highly effective way for solvent companies to wind up operations, ensuring that company assets are distributed efficiently and tax liabilities are minimised. This structured process enables business owners to achieve the best financial outcome.

Tax Efficiency

A Members Voluntary Liquidation offers various tax benefits. However, applying the relevant legal provisions under section 47 of the ITAA 1936 in voluntary liquidations can be a complex and daunting task. We work closely with your company’s accountant, or if there is none, we engage our own tax accountant to ensure you receive the tax benefits you are legally entitled to.

Transparency About Costs

We work closely with businesses to evaluate the most appropriate process for closing down the business. We gather financial information from you about your business and the reasons for closing it down. We conduct a thorough assessment before you engage us, so we can advise you on whether you can access the benefits of liquidation, and what the costs are to achieve this. We work closely with you to ensure there are no unexpected costs that would diminish the benefits of the liquidation process.

Clear and Swift Closure

A Members Voluntary Liquidation offers a clear and structured process for company dissolution, enabling quick, clean, and effective closure of operations without any complications.

Circumstances where an MVL Works

Some of the most common situations where engaging a liquidator to wind up your solvent company may be beneficial, include:

The company has fulfilled its purpose, and it is no longer needed to continue its existence.
The business and its assets have been sold, and the company has ceased trading.
The owners or their family have inherited the business, and they no longer wish to be involved in it.
The owner of the company’s business has passed away, and there is no longer a key person who can continue trading the business.
Business owners involved in the management of the company are looking to reduce their work hours or change careers.
Directors or shareholders of the company are looking to take time off work, retire, or move out of Australia.
Some or all shareholders want to split up the company’s assets.
The company is comprised of a group of companies, and shareholders are looking to restructure the group, for example wind up one or some of the companies.
There is a dispute between shareholders that impacts the future of the company.

Are you facing any of these challenges?

Our services

Our main serivces is helping direcorts decide if complany liquidation is the right option. If it is, we can handle hte liquidation process quickly and cost-effectively, making it as smooth as possible.

Simplified Liquidation

Simplified liquidations is a faster, more straightforward wat to wind up your company. It’s designed for smaller companies with fewer assets and creditors, helping you close efficiently and affordable.

Member’s Voluntary liquidation

MVL is a way to close a solvent company. It has benefits over deregistration, like certain tax advantages and preventing the company from being reinstated later.

Court Liquidation

A court appoints a liquidator after a judge’s order, often because creditors have taken legal action. This process helps to close the company and pay off its debts.

Creditor’s Voluntary Liquidation

Creditor’s Voluntary Liquidation is used to close an insolvent company. It’s the most common type of liquidation, where the company’s assets are sold to pay off debts.

Maximize returns and secure your company's future with efficient Members Voluntary Liquidation solutions.

Benefits of working with us

Members voluntary Liquidation (MVL) is a highly effective way for solvent companies to wind up operation, ensuring that company assists are distributed efficiently and tax liabilities minimized. It provided a structure process for business owners to achieve the best financial outcome.

Tax Efficiency:

Creditor’s Voluntary Liquidation is used to close an insolvent company. It’s the most common type of liquidation, where the company’s assets are sold to pay off debts.

Asset Protection:

The process helps protect company assets by ensuring they are appropriately distributed to shareholders, reducing financial risks for stakeholders.

Clear and swift Closure:

MVL offers a clear and structured process for company dissolution, enabling quick, clean, and effective closure of operations without any complications.

We can act as Liquidator of your company

Even if your company has sufficient funds to pay all creditors in full, you may still face various challenges when finalising the company’s affairs before its deregistration. We are well-versed in these issues and skilled in assisting you in closing your company.

We can collect money owed to the company, sell the company’s assets, deal with the company’s taxation obligations, and distribute funds to creditors and shareholders before the company is fully wound up and deregistered.

HOW WE CAN HELP

Book your consultation

We are always happy to help you answer any questions

FAQS

Below, you'll find answers to common questions about the closure of solvent companies and the solutions we specialise in.

What is the difference between a Member’s Voluntary Liquidation (MVL) and a Creditor’s Voluntary Liquidation (CVL)?
An MVL is used for solvent companies looking to wind up operations, pay all creditors in full and distribute any surplus to shareholders. A CVL is for insolvent companies that need to close due to financial difficulties, and it addresses the outstanding debts to creditors.
How can I determine if liquidation is the right step for my company?
If you’re considering closing down a company, regardless of the reason, we recommend seeking our advice to determine if you can benefit from a formal voluntary liquidation. We’ll typically need to gather financial information from you before providing guidance. Please note that our initial consultation is complimentary and obligation-free.
What happens during the liquidation process?
The process involves appointing a liquidator to collect money owed to the company, sell assets, manage tax obligations and distribute proceeds to creditors and shareholders, ensuring compliance with all relevant laws and regulations.
How can I schedule a consultation?
Booking a consultation with us is straightforward and stress-free. We offer a complimentary, no-obligation initial consultation to discuss your situation and explore tailored solutions. Once you’re ready to work with us, we’ll provide you with written information about the proposed steps, costs involved, and what’s required from you.
Is my information secure with you?
We take data privacy very seriously. Your personal and financial information is kept confidential and secure. The consultation you have with us is strictly confidential.
What are your fees for liquidating a solvent company?
Our fees vary depending on the specific services required. We encourage you to book a consultation so we can discuss your company’s situation and prepare an estimated cost and timeframe for liquidating your company. We’ll have thorough discussions with you prior to the liquidation to avoid any unforeseen costs during the liquidation period.

Take the first step towards financial freedom today.

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