2 minutes

A Creditors’ Voluntary Liquidation (CVL), a Notice of Final Account Prior to Dissolution refers to a legal document that provides creditors with information about the final financial accounts of the company before it is dissolved.

In a CVL, the company’s directors initiate the liquidation process voluntarily due to the company’s insolvency. The appointed liquidator takes control of the company’s affairs, liquidates its assets, and distributes the proceeds to creditors in a prescribed order of priority.

When the liquidation process nears its conclusion and the liquidator has realized all the company’s assets, paid off the necessary expenses, and made distributions to creditors to the extent possible, a Notice of Final Account Prior to Dissolution is issued. This notice informs creditors that the final accounts of the company are available for review.

The Notice of Final Account typically includes details such as the date of the final account, a summary of the company’s financial position, information on the realisation of assets, a breakdown of payments made to creditors, and any remaining funds available for distribution. It may also provide instructions on how creditors can access and review the final account.

Creditors are given a certain period to review the final account and raise any objections or queries they may have. Once the review period has passed and any outstanding matters have been resolved, the liquidator will proceed with the dissolution of the company.

The Notice of Final Account Prior to Dissolution serves as a transparent communication to creditors, allowing them to assess the liquidator’s administration of the company’s assets and the distribution of funds. It provides an opportunity for creditors to verify the accuracy of the final account and address any concerns before the company is dissolved.

These notices are filed with Companies House against the registered company number. All UK company liquidation notices and updates are tracked centrally by Doorda.