Creditors' Voluntary Liquidation (CVL) is the process of winding up a company by a special resolution of its members when the company is insolvent. It involves a meeting with creditors and appointing a liquidator to manage the liquidation process.
Fraudulent trading refers to the act of carrying on a business with the intent to defraud creditors or for any other fraudulent purpose. This includes accepting money from customers when the company is unable to pay its debts and meet its obligations under the contract. Such conduct is a criminal offence.
Inability to pay one's debts when they fall due, which may lead to bankruptcy for individuals or liquidation for companies.
An insolvency practitioner is a qualified professional tasked with handling financial instability and administration processes such as liquidation, administration, or voluntary arrangements.
The Insolvency Service is an executive agency under the Department for Business, Innovation and Skills tasked with investigating and managing bankruptcies and liquidations.
A person appointed to manage the winding-up process of a company, ensuring orderly asset distribution to creditors and members.
Members' Voluntary Liquidation (MVL) is the process of winding up a solvent company by the members' resolution, followed by the appointment of a liquidator and declaration of solvency by directors.
An Official Receiver (OR) is a person appointed by the Secretary of State for Business, Innovation and Skills to act as a receiver in bankruptcy and winding-up cases. Official receivers are officers of the court, usually acting as liquidators in company windups.
