Members' Voluntary Winding Up

A solvent closure

A members' voluntary winding up is a process used to close down a company that can still pay its debts in full. It is generally chosen by the owners when a company has served its purpose and they want to wind things up tidily. Because the company is solvent, the focus is on settling remaining obligations and returning any surplus to members, rather than on creditor losses.

How it differs from insolvent winding up

This type of winding up usually starts with the directors forming and recording a view that the company can pay its debts within a defined period. If it later turns out the company cannot, the process may convert into a creditors' winding up. This is general information only and not legal or financial advice. The general concept is covered at winding up.