Creditors voluntary liquidation (“CVL”)

This is a situation where the directors of the company have concluded that the company is insolvent and that after considering all other alternative insolvency procedures it has no option but to go into liquidation. Formal meetings of the shareholders and the creditors are convened where at the shareholders meeting resolutions are passed to place the company into liquidation and appoint a liquidator. At the subsequently held creditors meeting the creditors have the deciding say on the individual(s) appointed as liquidator(s) who may or may not be the same as nominated by the shareholders.

Like the CPL above, this is a terminal solution with the company being dissolved shortly after conclusion of the liquidation.

If you would like some more information on the creditors’ voluntary liquidation services we provide, please contact corporate.insolvency@aabrs.com