A Creditors Voluntary Liquidation is a formal process by which an insolvent company is wound up. The directors initiate the process by passing a resolution to liquidate the company, and a licensed insolvency practitioner is appointed as liquidator. The liquidator realises the company’s assets, pays creditors in the order of priority set out in law, and dissolves the company. A CVL is often the most appropriate outcome when a business can no longer trade viably. It provides an orderly, legally compliant way to close a company while treating creditors fairly.
