A members' voluntary winding up (MVL) is the process for a solvent company when its members no longer wish to retain the company's structure because the company has reached the end of its useful life.
An MVL is the only way to fully wind up the affairs of a solvent company. All outstanding creditors are paid in full, and any surplus assets are distributed to its members. An MVL also protects the members' interests while the company structure is dismantled. The process is started when the directors resolve to call a meeting of members to wind up the company. Directors must complete a declaration of solvency that states the company is solvent and can pay all its debts within 12 months. The declaration is lodged with the Australian Securities and Investments Commission (ASIC) before the members' meeting. The solvent company is then wound up on the resolution of its members at the meeting.