There are 2 types of Voluntary Liquidation (Winding-Up):
▷ Members’ Voluntary Liquidation (MVL)
▷ Creditors’ Voluntary Liquidation (CVL)
🟢MVL – for company that is able to pay its debts in full within the next 12 months.
🔴CVL – for company that is not able to meet its debts obligations i.e. not able to pay its debts and thus cannot continue its business.
Each method of liquidation has its own procedures. However, both are towards the same objectives –> to sell off/realise the assets and any balance (if available) will be distributed to the creditors and/or shareholders in accordance to the law.
Stay tuned for Court-Ordered Winding Up in the next series.
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How can Bizboard help?
As a team of professional accountants, Bizboard work and liaise with various professionals such as legal advisors, financial institutions, government authorities and other related professionals to achieve the best possible solution and highest recovery for all stakeholders throughout the insolvency or restructuring process.
Bizboard act as independent adviser to ensure the process is conducted in proper order and in accordance to the relevant laws and regulations. Our highly qualified team have worked throughout various cases in different industries and have an extensive knowledge of business and the impact on stakeholders when a company faces financial distress.
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