A liquidation for solvent companies, initiated by the company.
A Members’ Voluntary Liquidation is the process for winding up a solvent company. A company is solvent if it can pay its debts within 12 months and is otherwise unable to be deregistered at the end of its life because it holds assets or liabilities of more than $1,000. The objectives of this process are to liquidate the assets of the company and after paying any creditors distribute the surplus assets to the shareholders. In some instances the assets can be distributed to shareholders in specie so as to avoid actually selling the assets.
A Members Voluntary Liquidation can provide a tax advantageous mechanism for distributing assets held by companies to the shareholders, particularly where the Company holds pre CGT assets.
TPH Advisory has undertaken many member’s voluntary liquidations. We have undertaken this type of appointment for all types of businesses from Family Private Companies to public entities and even charities such as Ian Thorpe’s Fountain of Youth.