A Creditors’ Voluntary Liquidation (CVL) is a formal insolvency process. The directors and shareholders voluntarily choose to place a company that is in financial distress into liquidation. A Licensed Insolvency Practitioner is appointed by the shareholders, and creditors can confirm that appointment or nominate (and vote for) an alternative liquidator.
What is the liquidator’s role in CVL?
The liquidator will oversee the process of collecting and selling the company’s assets, make any remaining employees redundant and, if funds permit, agree the claims of creditors and make a distribution.
