Corporate Insolvency

Members' voluntary liquidation

Deregister a company with full distribution to members & creditors.

Winding up a solvent company when its directors believe that the company can pay all its existing debts in full within 12 months is known as a members’ voluntary liquidation (MVL). A MVL is the proper, formal process of finalising the life of a company to ensure that all of its affairs are properly and expertly resolved.

Background

Solvent liquidations offer a clean closure with no hangover

Winding up a solvent company through a MVL is the correct and formal procedure to finalise its affairs at the end of its life. A MVL is optimal when a business has been sold and proceeds must be distributed to members.

Other scenarios are when the company was set up for a specific project that’s now completed. Or when assets and entities need restructuring in corporate groups. Or simply that the entity has stopped trading.

Service highlights

Why choose a members' voluntary liquidation appointment?

Winding up a solvent company through a MVL is the correct and formal procedure to finalise its affairs at the end of its life.

Get finality

By working with expert registered liquidators, the MVL process alleviates the risk of mistakes and potential liability of directors or committee members.

No stone left unturned

A complete analysis can ensure all funds and assets are recovered.

Gain tax benefits

A MVL can result in substantial tax benefits for shareholders where certain exemptions can apply to assets distribution by a liquidator to shareholders.

Nip it in the bud

An independent third party can resolve any shareholder disputes and safeguard assets’ value from being impaired during the process.

Stay compliant

Committees for incorporated associations are assisted to discharge its duties and obligation to the incorporated association while complying with its Rules. The same principle applies to special purpose companies.

Save costs

Reduced compliance costs, specifically the costs of retaining large volumes of books and records by obtaining consent from ASIC for the early destruction of the company’s records.

FAQs

Some questions you may like answered.

Companies with assets over $1,000 cannot be deregistered through ASIC without a formal members' voluntary liquidation appointment, which means a third-party registered liquidator must be appointed.

For companies with assets under the threshold above, directors/members/shareholders can certainly deregister their company, however they could potentially missing out on some massive advantages and assurance measures.

MVL’s are also the appropriate method for finalising the life of an incorporated association, which typically encompass not-for-profit (NFP) organisations such as charities, social and sporting clubs. During a MVL a solvent company is wound up and its remaining assets are distributed to its members/ shareholders, or a like-minded NFP when distributing the NFP’s assets.

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Jason Bettles

Principal, Gold Coast, Northern NSW

Jason Bettles

Principal, Gold Coast, Northern NSW

Aaron Lucan

Principal, Western Sydney, Central West

Aaron Lucan

Principal, Western Sydney, Central West

Stephen Hundy

Principal, Canberra, Wollongong

Stephen Hundy

Principal, Canberra, Wollongong

Matthew Kucianksi

Principal, Melbourne, Ringwood

Matthew Kucianksi

Principal, Melbourne, Ringwood

T: 03 9613 5518

F: 03 9613 5599

EMAIL Matthew

Mervyn Kitay

Principal, Perth

Mervyn Kitay

Principal, Perth

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