Accountants Daily
Finalists, Fastest
Growing Firm
AFR Top lOO
Accounting Firms
CA and CPA
Qualified
Accountants
National Team
ASIC Registered
Liquidators
ARITA
Professional
Members
A Members’ Voluntary Liquidation, or MVL, is a formal voluntary winding up process for a solvent Australian company that can pay its debts in full. It may suit your company after a business sale or corporate restructuring, particularly if it still holds assets or retained earnings.
An ASIC registered liquidator settles liabilities, distributes surplus assets to shareholders and finalises the company’s affairs before deregistration. Our ASIC Registered Liquidators can manage the process and keep you informed through to finalisation.
An MVL may suit you if your company is solvent but is no longer needed. It provides a formal process for dealing with remaining assets and bringing the company’s affairs to a close. Common situations include:
Cost-effective method of winding down your business
Put an end to hassling calls from creditors
Reduce stress and pressures from financial challenges
Solve your Directors Penalty Notice (DPN)
If you’re winding up because the company has reached its natural end, not because of financial pressure, MVL is likely the right path. MVL eligibility criteria includes:
An MVL follows a formal process that allows the company’s affairs to be dealt with before it is deregistered.
Mackay Goodwin excels in navigating the complexities of corporate financial distress, providing expert solutions and end-to-end support. Our proven track record and commitment to recovery make us a steady guide in uncertain times.
Winding up your insolvent company for good? Liquidation is a formal process that ensures remaining assets are fairly distributed to creditors. Our experts guide you through every step, providing clear advice and support to help you exit with confidence and compliance.
In a Creditors’ Voluntary Liquidation, our ASIC-registered liquidators support directors by dealing with the formal steps of liquidation like convening shareholder meetings. We manage the entire process, reducing stress and helping you move forward with confidence.
A Provisional Liquidator can help safeguard your company during uncertain times. We step in to take control, limit further damage, and protect the business while key issues are resolved.
If your company owes less than $1 million, you may qualify for this streamlined alternative to CVL. We’ll handle the process with clarity and care, helping you wind up the right way.
Considering a member's voluntary liquidation? The process involves important legal steps and compliance with ASIC published notices, so it’s best handled by experts.
At Mackay Goodwin, we’ll guide you through the liquidation process with clear advice tailored to your business and group structure. For a confidential discussion, contact our team today and explore the significant benefits of choosing the right pathway.
Edwin is a valuable member of the senior Mackay Goodwin team, with a huge amount of expertise and experience in running a range of different Deed of Company Arrangement proposals, for Administrations across a diverse range of industry sectors, and in all states across Australia.
David has a wealth of experience across receiverships, voluntary administrations and liquidations together with restructuring and turnaround engagements. Growing up in Bathurst, NSW, David’s interest in agriculture and passion for motorsport translates to his hands-on approach in the insolvency industry. Taking upon a broad range of appointments, David provides a thorough analysis of the current situations his clients are facing and provides the best possible outcome for them and other stakeholders. David’s experience allows him to draw on a broad range of prior appointments and their unique nature to facilitate the survival of a business where possible by using achievable arrangements.
Mitchell has 20 years’ experience in corporate insolvency and restructure. Mitchell is a Registered Liquidator having working on many types of corporate appointments. He has managed complex liquidations and voluntary administrations in numerous industries with expertise in property, finance, manufacturing, IT and building and constructions. Mitchell brings value to appointments from start to finish, from marketing and having initial contact with clients to achieving exceptional outcomes.
Grahame Ward is a Registered Liquidator and Administrator with expertise in industries like property, tourism, transport, hospitality, and manufacturing. Since 1996, he has specialised in corporate and personal insolvency, reorganisation, restructuring, and crisis management. As a Chartered Accountant and Official Liquidator, Grahame is known for delivering timely and practical advice, especially in complex insolvency matters. He is actively involved in professional development through ARITA, sharing his knowledge as a workshop leader. Grahame is committed to achieving positive outcomes for stakeholders, offering reliable support during challenging financial situations.
Gavin King is a seasoned business advisor and insolvency expert with extensive experience in corporate restructuring and turnaround management. Over the course of his career, Gavin has helped numerous businesses navigate complex financial challenges, providing tailored solutions that maximise stakeholder value. Specialising in insolvency administration, he brings a hands-on approach to managing voluntary administrations, liquidations, and corporate workouts. With a proven track record of leading successful recovery processes, Gavin leverages his deep industry knowledge to guide businesses through periods of distress, ensuring they emerge stronger and more resilient.
Andrew Quinn is a seasoned professional in the insolvency and restructuring industry, serving as a Director at Mackay Goodwin. With a deep understanding of complex financial challenges, Andrew has guided numerous businesses through voluntary administrations, liquidations, and corporate restructurings. His industry experience spans across sectors including construction, hospitality, and professional services, providing him with a diverse skill set to address each client’s unique needs.
Andrew’s strategic approach focuses on achieving the best possible outcomes for all stakeholders while navigating businesses through periods of financial adversity. His commitment to providing tailored solutions ensures that businesses receive the support they need to recover and thrive in challenging times.
No, it’s the opposite. Under the Corporations Act 2001, directors must have reasonable grounds to believe the company can pay its debts in full within 12 months after the winding up begins. An MVL, also known as a members’ voluntary winding up, is only available to solvent companies.
The main difference between a Creditors’ Voluntary Liquidation (CVL) and an MVL lies in solvency:
Both fall under voluntary liquidation, but while a CVL may arise from financial distress, an MVL is often chosen for restructuring a group structure, succession planning, or closing a solvent business.
Most MVLs take 3 to 6 months, though complex cases with property, investments or outstanding tax matters can take up to 12 months or more. Timeframes depend on the company’s assets, records and outstanding liabilities. We can review your company’s position and give you a clearer estimate.
A declaration of solvency records the directors’ opinion that the company can pay its debts in full within 12 months. This assessment is based on the company’s assets, liabilities and outstanding obligations. Directors make the declaration using Form 520 and lodge it with ASIC, the Australian Securities and Investments Commission. It’s an important part of confirming that an MVL is appropriate for the company.
No. At least 75% of eligible votes cast must support the special resolution to wind up the company, so unanimous approval isn’t generally required.
Form 520 records the directors’ declaration of solvency and is lodged with ASIC. It sets out the directors’ opinion that the company can pay its debts in full within 12 months.
Not necessarily. Whether an MVL offers tax benefits depends on the type of distribution and each shareholder’s circumstances, including how retained profits and capital amounts are dealt with. The Australian Taxation Office (ATO) generally treats capital distributions differently from dividend income. Your tax adviser should review the position before distributions are made.
Retained earnings are profits accumulated by the company that have not previously been distributed to shareholders. An MVL provides a formal process for dealing with those funds before the company is finalised.
Liquidation does not automatically turn retained earnings into a tax free capital distribution. Their treatment depends on the source and character of the funds and the applicable tax rules, so your tax adviser should review the position before distributions are made.
An MVL may suit your company if surplus assets, retained earnings or other affairs still need to be dealt with. Voluntary deregistration may be appropriate for a simpler company that meets ASIC’s requirements and has already dealt with its remaining affairs.
| Members’ Voluntary Liquidation | Voluntary Deregistration | |
| Company position | Solvent | Solvent |
| Best suited to | Assets or affairs remain | Minimal remaining affairs |
| Liquidator | Required | Not required |
| Surplus assets | Dealt with in liquidation | Dealt with before deregistration |
| Process | Formal winding up | Administrative deregistration |
| Compliance costs | Generally higher | Generally lower |
Speak to one of our experts now for a free consultation. Enter your details below or call 02 8001 6520.