Sterling Ford - Insolvency & Bankruptcy Services


   Members' Voluntary Liquidation - MVL

Members Voluntary Liquidation Direct Cost Effective, Value for Money Members Voluntary Liquidation Services available Nationwide for companies or LLPs with up to six members [with same class of share capital for companies or additional charge may apply]. Fixed fee and disbursement packages, with reduced insurance premiums. Early distributions of up to 75% of cash balance available within one month of appointment.


To take advantage of new opportunities for the changing tax year, please click here.

When it comes to Members Voluntary Liquidations, director/shareholders need look no further. Sterling Ford's Liquidation Direct MVL service is all about giving shareholders what they want.

From our experience we know what shareholders want, particularly with cash and/or other assets requiring urgent distribution.

Simply put, shareholders want their capital distribution;
  1. as quickly as possible,
  2. at least cost, and
  3. with the least amount of tax to pay


1. As Quickly as possible


We offer, at no extra charge, an interim distribution of up to 75% of any net cash balance held within 28 days of appointment, and aim to pay out the remaining 25% within 3 months as soon as final tax clearances have been received. Other classes of asset such as investments whether in subsidiary companies or quoted securities may be assigned to one or all members immediately following liquidation.

2. At Least Cost


With our set fees for up to 3 member^ companies [single share class**] at only £1,150 plus VAT*, subject to VAT deregistration being effected before liquidation by client/their accountant`, and disbursements including statutory advertising of £257 [plus VAT*] and low bonding insurance [click here to see our Bonding Insurance Table], we believe our transparent pricing is perhaps the most competitive available.
*VAT, if company is/was registered at full rate may be re recovered at a set fee of £65 plus VAT
**additional set fees where two or more share classes at £35 plus VAT per class of share
^further set fees apply per additional member in excess of 3 members as follows: 4-7 members at £50 plus VAT per member, 8-10 at £45 plus VAT per member, 11 or more at £40 plus VAT per member
`where VAT deregistration has not been effected online pre-liquidation by client/their accountant, a further set fee of up to £150 plus VAT may apply for manual [postal] deregistration, which may also delay tax clearance by up to 3 months.

WE WILL ALSO:

  1. Discharge up to 5 liabilities/expenses such as - any outstanding liabilities: HMRC VAT, corporation tax or PAYE, - expenses: accountant's fees, directors' expenses using our free of charge CHAPS or faster payments service at no extra charge but a set fee of £75 plus VAT shall apply per liability/expense to be discharged in excess of first 5 liabilities/expenses
  2. Make up to a maximum of 2 distributions [interim and final whether in specie/cash] at no extra charge - further distributions [in excess of 2 ] are charged at an additional set fee of £150 plus VAT for up to 2 members, £65 plus VAT per member from 3 -5 members and £50 plus VAT per each additional member from 6 members
  3. Defer distributions to subsequent tax year or splitting distributions between tax years to enable members to take advantage, where possible, of the annual exemption in each year - annual reporting/compliance charges of £450 plus VAT may apply, where liquidation is not concluded within 12 months - please ask us for details


3. With the least amount of tax to pay

We do not provide tax advice, so you are recommended to seek appropriate advice from your accountant or other tax adviser on the suitability of a Members' Voluntary Liquidation or MVL, the availability of entrepreneur's relief and annual exemptions from CGT etc. Information about Entrepreneur's Relief is however, available on HMRC's website at: http://www.hmrc.gov.uk/helpsheets/hs275.pdf

Our Approach

For every enquiry we receive we will always email a quote confirming our inclusive fee and disbursement rates and subject to being informed of the value of the company's assets, we will advise the level of bonding insurance premium too and therefore, the total cost of the liquidation.

We will always request the name of the company to be liquidated at the time of quoting, so that, at no charge we can verify the provisions from the company's articles of association on the notice period required for convening the general meeting at which the special resolution to place the company in liquidation may be passed. These provisions can vary from requiring 14 or even 21 clear days' notice being given, or may permit a waiver of full notice subject to the consent of a majority, whether 90% or 95%, of shareholders being obtained, which could, therefore, enable the company to be placed in liquidation in a matter of a few days. It is essential that these notice provisions are complied with to ensure that the special resolution being passed and hence the appointment of a liquidator are valid in law.

Some companies may have more than one class of share capital with different entitlements to notice of general meetings and the return of capital upon liquidation and it is important that the provisions in the articles are verified and the referring accountant or client advised accordingly, prior to any instructions to proceed to liquidation being accepted.

With Sterling Ford you can be confident that whatever the situation, we have the technical expertise to assist you.


Why use a Members Voluntary Liquidation?

A Members Voluntary Liquidation may be appropriate for a solvent company when:
  1. there has been a breakdown in the relationships between the company's directors or shareholders,
  2. there are changes in its markets that result in the company no longer being viable,
  3. the shareholders wish to remove their investment from the company,
  4. the directors of the company wish to retire,
  5. the company has met the objectives for which it was incorporated
  6. the directors/shareholders want a greater degree of certainty regarding ongoing liability than striking-off
  7. to enable shareholders to receive tax efficient returns of capital. Following the Enactment of Extra Statutory Concessions Order 2012 (ESC Order) an MVL should be used where more than £25,000 is to be distributed to shareholders to avoid the imposition of income tax, which would otherwise arise on dissolution. [For more information see links: http://www.legislation.gov.uk/uksi/2012/266/article/16/made; http://www.hmrc.gov.uk/tiin/tiin-esc-c16.pdf]


Why Sterling Ford?

Having provided a Members Voluntary Liquidation service since 1990 for a large number of family owned and single member companies, non-operating subsidiaries of media groups, shipping and leasing companies as well as the Church Commissioners, Sterling Ford have the expertise to deal with the very simple to the most complex MVLs, including those involving complex distributions in specie of a wide range of asset classes, whether investments in other companies, intellectual property rights, property joint ventures, assets held in other jurisdictions.

Our Charges Policy

To provide complete transparency in our charges for the cost effective, value for money services we offer.

Our Charges

With fixed fee packages available for companies and LLPs with up to 6 members from just £1,250 plus VAT and disbursements [including very competitive insurance premiums for estate assets], there isn't a more cost effective way of taking advantage of the Members Voluntary Liquidation procedure.
For our fixed fee and disbursement schedule for companies and LLPs with up to 6 members, which also provides a bonding insurance table specifying the very competitive premiums charged for insuring estate assets, please click here

For a different perspective, call us now on 0808 171 2291 or complete our enquiry form.