A Creditors Voluntary Liquidation or CVL is a formal insolvency process designed to bring the life of a company to an end and involves calling a meeting of creditors and shareholders to place the company into liquidation. A CVL is a voluntary process because the directors decide to place the company into liquidation, a CVL is not a court driven process such as a compulsory liquidation which involves the issuing of a winding up petition and a court hearing. A CVL is used when a company is insolvent and the directors wish to bring its life to an end as quickly as possible. There are many advantages of a CVL, the process is extremely quick and easy and in most circumstances the company can be placed into liquidation within 16 days of signing notices. The liquidator takes over control of the company, the directors no longer have any responsibility for the company and once the directors have placed the company into liquidation they are no longer at risk of a claim for future ongoing losses in respect of wrongful trading, the business and assets can be bought from the liquidator free from the company’s liabilities, the Employment Protection Act comes into force which will allow the employees to make a claim to the Redundancy Payments Office for any claims they may have in respect of arrears of wages, holiday pay, notice pay or redundancy. There are however a few disadvantages, a liquidation is usually slower to initiate than an administration, trading therefore can be disrupted which can damage the goodwill of the business, the fact that the company has been placed into liquidation is a public record and in some cases notice of the liquidation does need to be advertised in the local area. If your company is insolvent and its life needs to be bought to an end, a CVL is often the quickest most efficient and cost-effective way to bring the life of a company to an end. However, you should always discuss the matter with a licensed insolvency practitioner to make sure that a CVL is the best option available to you and the company.