Members' Voluntary Winding Up

Members' Voluntary Winding Up is a process for closing a company when its members (owners) agree that it can pay its debts. This usually happens when the company has fulfilled its purpose and is solvent, meaning it can cover its obligations. The members appoint a liquidator to handle the winding-up process, which involves selling remaining assets, paying off debts, and distributing any leftover funds to the members. This process is initiated by the members themselves, and it’s distinct from compulsory winding up, which is initiated by creditors through a court petition.