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MVL and transfer of funds to Insolvency Practitioner...norm or risky?

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    MVL and transfer of funds to Insolvency Practitioner...norm or risky?

    Folks.

    planning to call it a day on my limited company and following MVL route.
    however, my IP is asking for funds to be transferred to her business account.
    Company has no liabilities pending, and disbursements are to director herself mainly.

    so question - it is a standard practice to transfer entire funds to IP and then get appropriate amount back?

    I hope someone can provide genuine information to help me decide whether to transfer or not.

    thanks.

    #2
    Yes it is normal, which is why you must be very careful in choosing your Practitioner and perform due diligence on them.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #3
      Maybe, but it's totally safe to send money to one of the posters on here, as long as they have at least 60000 posts under their belt.

      Comment


        #4
        You wouldn't normally transfer the funds yourself, as this removes much of the protection - though some IPs might ask you to if you are in a hurry (at your risk of course).

        Instead, during the MVL, normally the IP would take control of the bank account and they would then carry out the necessary transfers.

        Alternatively you could use an insolvency firm that allows you to retain control of the company funds by way of director loans, negating the need for the liquidator to take control.

        Comment


          #5
          Originally posted by cojak View Post
          Yes it is normal, which is why you must be very careful in choosing your Practitioner and perform due diligence on them.
          Thanks Cojak, what would qualify as being careful and performing due diligence?
          So far due-deligence
          1)IP is on IP register.
          2)IP has Bond to cover eventualities
          3)IP has been recommended by my accountant, as per them they been recommending him for ages now.
          4)IP and his company been active on this forum too.

          not sure what else can be done as part of due-deligence.

          Comment


            #6
            (sucks air through teeth) All I am saying is rather you than me fella.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Originally posted by johnsommers View Post

              Thanks Cojak, what would qualify as being careful and performing due diligence?
              So far due-deligence
              1)IP is on IP register.
              2)IP has Bond to cover eventualities
              3)IP has been recommended by my accountant, as per them they been recommending him for ages now.
              4)IP and his company been active on this forum too.

              not sure what else can be done as part of due-deligence.
              That's it really, as well as recommendations.

              "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
              - Voltaire/Benjamin Franklin/Anne Frank...

              Comment


                #8
                QC’s opinion would go down nicely

                Comment


                  #9
                  Originally posted by johnsommers View Post

                  Thanks Cojak, what would qualify as being careful and performing due diligence?
                  So far due-deligence
                  1)IP is on IP register.
                  2)IP has Bond to cover eventualities
                  3)IP has been recommended by my accountant, as per them they been recommending him for ages now.
                  4)IP and his company been active on this forum too.

                  not sure what else can be done as part of due-deligence.
                  You'd trust your money to anyone who posts here?
                  England's greatest sailor since Nelson lost the armada.

                  Comment


                    #10
                    Originally posted by Uncle Albert View Post

                    You'd trust your money to anyone who posts here?
                    I guess one has to draw the line somewhere, and then there is fate

                    Comment

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