creditors' voluntary liquidation


creditors' voluntary liquidation
= CVL
The winding-up of a company by special resolution of the members when it is insolvent. A meeting of creditors must be held within 14 days of such a resolution and the creditors must be given seven days' notice of the meeting. The creditors also have certain rights to information before the meeting. A liquidator may be appointed by the members before the meeting of creditors or at the meeting by the creditors. If two different liquidators are appointed, the creditors' nominee is usually preferred. CVLs, also known as creditors' voluntary winding-ups, are the most common form of liquidation in use in the UK. Compare members' voluntary liquidation

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  • creditors' voluntary liquidation — Under section 90 and Chapter IV of Part IV of the Insolvency Act 1986 liquidation of a company which is unable to pay its debts in full within a period of twelve months which is commenced by a resolution of shareholders although under the control …   Law dictionary

  • creditors' voluntary liquidation — CVL The winding up of a company by special resolution of the members when it is insolvent. A meeting of creditors must be held within 14 days of such a resolution and the creditors must be given seven days notice of the meeting. The creditors… …   Accounting dictionary

  • voluntary liquidation — A non court based procedure to wind up or liquidate a company. There are two types of voluntary liquidation: • members voluntary liquidation of solvent companies; and • creditors voluntary liquidation of insolvent companies. Practical Law Di …   Law dictionary

  • voluntary liquidation — voluntary winding up See: creditors voluntary liquidation, members voluntary liquidation …   Accounting dictionary

  • voluntary liquidation — voluntary winding up See creditors voluntary liquidation; members voluntary liquidation …   Big dictionary of business and management

  • Voluntary Liquidation — A corporate liquidation that has been approved by the shareholders of the company. Voluntary liquidations stand in contrast to involuntary liquidations, which are a result of Chapter 7 bankruptcy. The shareholder vote allows the company to… …   Investment dictionary

  • members' voluntary liquidation — members voluntary winding up The winding up of a company by a special resolution of the members in circumstances in which the company is solvent. Before making the winding up resolution, the directors must make a declaration of solvency. It is a… …   Accounting dictionary

  • members' voluntary liquidation — members voluntary winding up The winding up of a company by a special resolution of the members in circumstances in which the company is solvent. Before making the winding up resolution, the directors must make a declaration of solvency It is a… …   Big dictionary of business and management

  • liquidation — winding up The distribution of a company s assets among its creditors and members prior to its dissolution. This brings the life of the company to an end. The liquidation may be voluntary (see creditors voluntary liquidation, members voluntary… …   Accounting dictionary

  • liquidation — winding up The distribution of a company s assets among its creditors and members prior to its dissolution. This brings the life of the company to an end. The liquidation may be voluntary (see creditors voluntary liquidation; members voluntary… …   Big dictionary of business and management