A CVL is the most common method of placing a company into liquidation. If your company is insolvent and cannot continue trading it can enter into a CVL.
Once a company is placed into liquidation and a liquidator is appointed, it is the duty of the liquidator to realise the assets of the company. The directors of the company can sometimes purchase these assets, provided that they pay fair value.
The process can help relieve the stress and worry of directors by removing creditor pressure and minimising the possibility of directors’ personal liability if action is taken promptly.
The appointed liquidator fees are usually agreed with creditors and paid from the realisation of the company assets.