When it comes time to winding down operations, businesses need the right advice. Liquidating a solvent business is an efficient way to distribute the remaining share capital in a company in a tax efficient manner. The specialist team at Springfields Advisory can help you to navigate your way through solvent liquidation as it can only be conducted by licensed insolvency practitioners. With offices in Leicester, Derby and London, Springfields Advisory are perfectly positioned to help businesses of all sizes wind down operations or transition into a new phase.
What is solvent liquidation exactly?
Put simply, solvent liquidation is when a company closes down with enough funds to pay off its debts and distribute its assets fairly amongst stakeholders.
With a Members’ Voluntary Liquidation (‘MVL’ or ‘Solvent Liquidation’), the company’s shareholders put the solvent company into liquidation to unlock the company’s capital. This option can secure an orderly winding-up of a company, or close down of a subsidiary, for which the shareholders no longer have any use. The shareholders appoint a Liquidator when a Statutory Declaration of Solvency is prepared by the directors of the Company. This states that the directors have conducted a full enquiry into the company’s affairs and believe that it can repay its debts, with interest, within 12 months. The Liquidator realises the company assets, settles any creditor claims and distributes the remaining assets to shareholders. In most cases, we can offer a fixed cost for this type of instruction.
BUSINESS REstructuring WHEN YOU'RE SOLVENT
Many successful businesses choose to restructure when they are solvent for a number of reasons. Part of the business may have been sold or there may be a more efficient way to distribute profits amongst shareholders. Drawing upon our years of experience, the experts at Springfields Advisory can help you. Tax is an important factor and we work closely with your existing advisors to ensure a cost effective solution.
It pays to get clear, calm and practical advice to help you find a better way forward. Trustworthy, honest and reliable, the solvent liquidation specialists at Springfields Advisory can deliver clear and cost effective guidance no matter what industry you are in.
Are you planning an exit strategy?
For an appointment with a solvent liquidation expert, call our office