On 18 June 2026, the Insolvency Service published Review: Members' Voluntary Liquidations, the first large-scale analysis of MVL outcomes in England and Wales, examining over 2,000 cases between 2016 and 2024 (Press Release).
The review was commissioned to better understand the MVL landscape generally and to assess the potential impact of the High Court's decision in Noal SCSp v Novalpina Capital LLP [2025] EWHC 1392 (Ch), in which it was held that s 89(1) Insolvency Act 1986 requires that the company's debts (and interest) actually be paid in full within the period specified in the declaration of solvency, not exceeding 12 months. Where that condition is not met, the liquidator is obliged under s 95 IA 1986 to convene a meeting of creditors and convert the MVL into a CVL (see Voluntary liquidation, Q&A here). Industry practice had previously operated on the basis that an MVL could continue beyond 12 months provided the company remained balance sheet solvent.
The results indicate that the MVL process is substantively effective in delivering its core statutory purposes. Creditors were paid in full in virtually all cases (95% within 12 months), members typically received the surplus estimated at the outset, and costs were found to be proportionate to the assets under management. CVL conversions were rare (0.3% of the sample), with one resulting in an enforcement outcome.
For more information about MVLs generally, see Voluntary liquidation/Members' voluntary liquidation.
First published on the R&I News Service on 19 June 2026
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