CVL FAQs

Can we use the old company's name?

It is possible on the proviso that either the court or liquidator agrees. However it remains a criminal offence to pass a new company off as the old one.

What happens to my employees under a Compulsory Voluntary Liquidation (CVL)?

Employees are entitled to funds under a Government fund which is capped at £330 per week.

Can we pay our employees and then liquidate our company?

No. To do so would in fact be potentially illegal as it would be seen as a preferential payment under S239 of the Insolvency Act 1986.

Can we still liquidate our company if a creditor has issued a winding up petition against our company?

Yes - if a hearing date has not already been set. If it has then the answer is no, unless the creditor agrees to withdraw the petition. If the creditor is not prepared to do so call us as we may be able to help put your company into Administration which would provide the company with a moratorium period. During which we will of course endeavour to help resolve all issues.