Creditors' voluntary liquidation
The most common way an insolvent company is wound up by its directors' decision.
How it begins
A creditors' voluntary liquidation (CVL) typically starts when the directors form the view that the company is insolvent, and the members resolve to wind it up. A registered liquidator is appointed to realise assets, investigate the company's affairs and distribute any funds to creditors.
What directors should expect
Directors must assist the liquidator, provide books and records and complete a report on the company's affairs. The liquidator will investigate director conduct for the benefit of creditors — which is why many directors value independent support of their own.
General information only — not legal or financial advice. Any figures or time limits are indicative and can change. Every situation is different; speak with us about yours.