Creditors' voluntary liquidation (CVL) checklist
A creditors voluntary liquidation, or CVL, is the process directors use to close a company that cannot pay its debts. A licensed insolvency practitioner is appointed as liquidator and handles the statutory steps, but the directors start the process and have duties throughout. In outline: the directors take advice and call a general meeting, the shareholders pass a winding-up resolution with at least 75% by value in favour, a licensed insolvency practitioner is appointed liquidator, the resolution is sent to Companies House within 15 days and advertised in The Gazette within 14 days, and a creditors decision process is carried out. Once liquidation begins the liquidator is in control and you must cooperate. Use the checklist below to keep track. gov.uk: Liquidate your limited company
The checklist
Copy or download the checklist below to work through the steps. Costs, timescales and the exact order of some steps depend on your company, and your insolvency practitioner will confirm them for your case.
CREDITORS' VOLUNTARY LIQUIDATION (CVL): STEP-BY-STEP CHECKLIST
This is a plain-English checklist of the main steps in a CVL. A licensed
insolvency practitioner handles the statutory mechanics; your job as a
director is to act early, stop making things worse, and cooperate fully.
BEFORE YOU START
[ ] Recognised the company is, or is likely to be, insolvent (it cannot
pay its debts as they fall due, or its liabilities exceed its assets)
[ ] Stopped taking on new credit or making payments that prefer one
creditor over others
[ ] Gathered the company's key papers: accounts, bank statements, list of
creditors and amounts, assets, employee details
[ ] Taken advice from a licensed insolvency practitioner on whether a CVL,
administration or another route is right
APPOINTING THE LIQUIDATOR AND CALLING THE MEETINGS
[ ] Chosen a licensed (authorised) insolvency practitioner to act as
liquidator
[ ] Directors passed a board resolution to convene a general meeting of
the members
[ ] Members passed the winding-up resolution: at least 75% by value of the
shareholders must agree
[ ] The creditors' decision process was carried out so creditors could
consider the directors' choice of liquidator and nominate their own
THE STATUTORY STEPS (the liquidator will handle these)
[ ] The winding-up resolution sent to Companies House within 15 days
[ ] The resolution advertised in The Gazette within 14 days
[ ] A statement of the company's affairs prepared for creditors
YOUR DUTIES AS A DIRECTOR ONCE LIQUIDATION BEGINS
[ ] Cooperate fully with the liquidator and hand over the books, records
and company assets
[ ] Provide the information the liquidator asks for, including on the
conduct of the business
[ ] Stop acting as if you still run the company: the liquidator is now in
control
[ ] Keep your own records, especially of any overdrawn director's loan
account or personal guarantee
WORTH CHECKING FOR YOURSELF
[ ] Whether you have a director redundancy claim as an employee of the
company
[ ] Whether any personal guarantees are likely to be called in
[ ] The tax position on any overdrawn director's loan account
Note: costs, timescales and the exact order of some steps depend on your
company. Your insolvency practitioner will confirm them for your case. What the directors do, and what the liquidator does
The split matters. The directors recognise the position, stop making it worse, take advice, call the members meeting and cooperate afterwards. The licensed insolvency practitioner deals with the statutory mechanics: the creditors decision process, the statement of affairs, the filings, and realising the company's assets for creditors. According to gov.uk, the winding-up resolution needs at least 75% by value of the shareholders, must be sent to Companies House within 15 days and advertised in The Gazette within 14 days.
Before you commit to a CVL
A CVL is not the only route. Depending on the company, administration, a company voluntary arrangement or, for a solvent company, a members voluntary liquidation may fit better. Our route chooser gives a plain-English starting point, and a licensed insolvency practitioner can confirm the right option. This checklist is general information, not advice, and the practitioner is responsible for the statutory steps.
Related: creditors voluntary liquidation, board resolution template, the liquidation cost calculator, and the director redundancy calculator.
CVL checklist: common questions
What is the shareholder vote needed for a CVL?
According to gov.uk, at least 75% by value of the shareholders must agree to the winding-up resolution to place a company into a creditors voluntary liquidation. The directors call the general meeting at which the shareholders vote. The resolution must then be sent to Companies House within 15 days and advertised in The Gazette within 14 days.
Who runs the CVL, the directors or the liquidator?
The liquidator runs it. Once the winding-up resolution is passed and a licensed insolvency practitioner is appointed as liquidator, control of the company passes to them. Your role as a director changes: you must cooperate, hand over the records and assets, and give the liquidator the information they ask for, including about how the business was run.
Do I need an insolvency practitioner for a CVL?
Yes. A creditors voluntary liquidation must be handled by a licensed, authorised insolvency practitioner acting as liquidator. This is not something a director can do alone. The practitioner deals with the creditors decision process, the statement of affairs, realising assets and the filings. Getting advice early usually gives you more options and reduces the risk of personal claims.
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This is general information, not legal or financial advice. A creditors voluntary liquidation must be handled by a licensed insolvency practitioner, and the steps and timescales depend on your company. Speak to a Licensed Insolvency Practitioner about your own situation. Last reviewed July 2026.