Creditors Voluntary Liquidation

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What is a Creditors Voluntary Liquidation?

This process allows directors to appoint their own liquidator and formally close an insolvent company.

A Creditors’ Voluntary Liquidation (CVL) provides for the Directors of an insolvent Company to decide that the best course of action is to arrange for the company to be wound up.


Cogent Consult are in the unique position to act for the Directors not the creditors thus ensuring that their interests are protected whilst helping guide Directors through the process of convening meetings of the Company’s shareholders and creditors to consider resolutions to wind up the Company and appoint a Liquidator.


Once appointed, the Liquidator who is a licenced insolvency practitioner, takes control of the Company from the Directors. A short period of trading may take place to complete outstanding contracts, but it is more common for the Company to cease trading and its assets sold to pay the costs of the liquidation with any surplus being paid to creditors in the priority set out in legislation.


A CVL can be a good option if the company it is unable to pay its bills as and when they fall due. The legal definition of insolvency.


We will work with Directors liaise with the liquidator whilst finalising the closure of the company, pensions, VAT accounts etc.


Contact us on 0791 88 66 245 for further information.

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