A guide, not advice. This explains how things generally work. A licensed insolvency practitioner will tell you what applies to your company or to you.
The CVL process - a five-step guide for directors
A Creditors' Voluntary Liquidation follows the same five steps for every company - here they are with realistic timescales, so you know what happens when.
Step 1 - Advice and instruction (days 1-3)
A licensed insolvency practitioner reviews the position, confirms a CVL is the right route against the alternatives, and is formally instructed; you'll gather records and prepare the company meanwhile.
Step 2 - Notices and the statement of affairs (week 1-2)
Shareholder decisions are convened, creditors are notified, and directors prepare the statement of affairs - the formal snapshot of assets and liabilities the whole process rests on.
Step 3 - Resolutions and appointment (week 2-3)
Shareholders pass the winding-up resolution (75% by value), creditors confirm the liquidator through the decision procedure, and the company is formally in liquidation - directors' powers cease from this point.
Step 4 - The liquidation itself (months 1-9)
The liquidator realises assets, agrees creditor claims, processes employee claims (typically paid within weeks), and completes the statutory review of directors' conduct.
Step 5 - Distribution and dissolution (months 6-12)
Funds are distributed in the statutory order, final accounts are filed, and the company is dissolved around three months later - see how long each stage takes in detail.
Call our licensed insolvency practitioners in Manchester on 0333 023 5090 - free, confidential, and directly with an ICAEW-licensed IP.
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This page is intended for general information purposes only and does not constitute financial, legal, or professional advice. Always take advice from a licensed insolvency practitioner about your specific position.