Members' Voluntary Liquidation (Solvent)

A members' voluntary liquidation is the process whereby a company that is no longer operating can transfer its remaining assets to its shareholders in a tax effective manner. With the advent of the income tax consolidation legislation, there is often no longer the need for companies to maintain complex corporate structures, simply to preserve a pre-existing tax benefit. These dormant or redundant entities can continue to cost the parent company time and money to retain and a members' voluntary liquidation will enable the redundant corporate structure to be streamlined.