Creditors' voluntary liquidations in Scotland

Creditors' voluntary liquidation (CVL)

When directors conclude that the company cannot pay its debts, the shareholders pass a special resolution under section 84 of the Insolvency Act 1986 to wind it up, and the creditors are asked — by a virtual meeting or deemed consent — to confirm or replace the liquidator nominated by the directors. No court is involved unless something is disputed.

In the Gazette a CVL normally shows as two adverts on the same day: the winding-up resolution and the notice of appointment of the liquidator. Creditors then submit their claims, in Scotland called a statement of claim, to that liquidator.

Other procedures: Winding up by the court · Members' voluntary liquidations · Administrations · Receiverships · Winding-up petitions.