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

[Clarke Bell]

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.

Yes, this is normal practice from an IP...with the funds being held in a client account.

And I agree about doing the due-diligence, and making sure you are dealing with an IP who is regulated and experienced with doing MVLs.

[johnsommers]

You'd trust your money to anyone who posts here?

I guess one has to draw the line somewhere, and then there is fate

[Uncle Albert]

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?

[AtW]

QC’s opinion would go down nicely

[cojak]

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.

[northernladuk]

(sucks air through teeth) All I am saying is rather you than me fella.

[johnsommers]

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.

[ChimpMaster]

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.

[AtW]

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.

[cojak]

Yes it is normal, which is why you must be very careful in choosing your Practitioner and perform due diligence on them.

[johnsommers]

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.