As Insolvency Practitioners, we handle many Members’ Voluntary Liquidations – or solvent liquidations – every year, and we are always delighted when the client gives us a positive testimonial for our work. In this case the testimonial is for the Solvent Liquidation of the sports charity The Join In Trust, Limited by our London office, which was dissolved on 29 July 2019. Our team was headed up by Hugh Jesseman, as the liquidator. It was a quick and efficient Members’ Voluntary Liquidation that lasted 9 months, which resulted in a distribution of £19,319 as a charitable donation to a similar cause.
We were introduced to the charity by the accountants Chaddesley Sanford, who had this to say about our work:
“We appointed Antony Batty and Co to deal with a Members Voluntary Liquidation of a high-profile charity that had run its course. They talked the trustees through each step of the process clearly and dealt with everything exceptionally efficiently. I’d have no hesitation in recommending their services.”
What was the Reason for This Members’ Voluntary Liquidation?
The Join In Trust Limited was incorporated on 13 March 2012, and was set up as a charitable organisation for the promotion of sports activities after the 2012 London Olympics.
The charity was not insolvent when the Trustees made the decision to wind the affairs up. Instead, it was felt that the Company had reached the end of its useful life, and upon the recommendation of Chaddesley Sanford, Hugh Jesseman was appointed Liquidator on 17 July 2018.
We have supervised hundreds of successful Members’ Voluntary Liquidations since our inception in 1997. Click here to see a summary of the key stages involved in the MVL process.
The MVL showed cash at Bank of £28,376. As the Company was a charity, it was not subject to Corporation Tax, and once the necessary other clearances were received from HMRC, our administration of the liquidation was concluded, with £19,319 being realised after expenses, fees and the paying of all creditors. This sum was made over as a charitable donation to a similar cause.
We are Specialists in Charity Insolvency
Not all Charity liquidations are solvent liquidations. The charity sector, in particular the smaller charity sector, has seen growth in insolvent liquidations in recent years, according to Third Sector. Their figures show that the number of small charities disappearing from the Charity Register has significantly increased by 245 in the 3 years to 2018. In detail, the numbers reveal that, in 2016, 3,856 charities with incomes of less than £1.5m left the register, while 4,069 left in 2017 and 4,783 left in 2018. This trend has continued through the Covid-19 Pandemic.
If a charity, or indeed any company becomes insolvent, and there is no prospect of restructuring to turn the business around, then a formal insolvency process is required, in which our objective is to work towards the best possible outcome for all concerned.
