In a Members Voluntary Liquidation, what do shareholders decide to do?

In a Members Voluntary Liquidation, shareholders opt to close the company because it is solvent, meaning the company has enough assets to cover its debts. This process is initiated with the intention of ensuring that all creditors are fully paid. Shareholders pass a resolution for liquidation, which is typically followed by the appointment of a liquidator. The liquidator is responsible for settling the company’s affairs, liquidating assets, and distributing any remaining funds to shareholders after debts have been satisfied.

This approach is distinct from dealing with a company that has outstanding debts or insolvency, making the other options inappropriate in this context. Choices like liquidating a company with outstanding debts or filing for bankruptcy do not align with the nature of Members Voluntary Liquidation, which is a proactive step taken when a company can pay off its liabilities in full.