Step-by-step Guide To Creditors Voluntary Liquidation
January 27, 2023 ⚊ 1 Min read ⚊ Views 66 ⚊ BUSINESS
Creditors Voluntary Liquidation (CVL) is a process by which a company that is unable to pay its debts voluntarily winds up its affairs and goes out of business. This process is initiated by the directors of the company, who must firstly make a declaration of solvency that they believe the company will be able to pay its debts in full within a year. If the declaration is made, then a meeting of the creditors is called, and if 75% of the creditors by value agree, the company can be placed into liquidation.
Tags: Creditors Voluntary Liquidation, CVL
