Members' voluntary liquidation (solvent)

How members' voluntary liquidation works

Solvent route. Companies here declared that they can pay all debts in full. Do not read a members' voluntary liquidation as a default.

A members' voluntary liquidation is a solvent closure. Before the shareholders' special resolution, the directors swear a declaration of solvency (section 163 of the IRDA) confirming that every debt can be settled in full within twelve months.

MVLs are commonly used to retire dormant holding companies, fund vehicles or group entities after a reorganisation. A gazette notice for an MVL is therefore not a sign of financial distress — creditors are expected to be paid in full and surplus assets go back to shareholders, sometimes in specie. If the liquidator later finds the company cannot pay its debts, the process converts to a creditors' voluntary liquidation.

Most frequent office-holders on this route: Tricor Singapore (9), BDO Advisory (6), Boardroom Corporate & Advisory (6), Baker Tilly (4), AAG Corporate Advisory (3).