Members' Voluntary Liquidation (MVL)

Members' Voluntary Liquidation (MVL) is a process used by solvent companies that wish to close down while ensuring that all debts are paid. During an MVL, the company's members (owners/shareholders) decide to liquidate the business, appoint a liquidator, and sell off assets. After settling any outstanding liabilities, the remaining funds are distributed to the shareholders. This procedure is typically initiated when the company has no further use for its operations but has sufficient funds to cover all its obligations, ensuring an orderly and fair winding down of the business.