The Directors of a solvent limited company may close down their company using a Members Voluntary Liquidation (MVL). The key difference between a Members Voluntary Liquidation and other types of liquidation is that the company must be able to repay all its debts in full at the time it is liquidated.
An MVL may be attractive to Directors and Shareholders looking to retire or return to an employed position. There can be significant tax advantages to closing down a solvent company using an MVL however, this is a complicated matter requiring specialist, technical advice. A Licensed Insolvency Practitioner must be appointed to deal with an MVL.