A right (and royal) liquidation
People and their situations change, relationships begin or end and new opportunities may present themselves which might have more potential financially, professionally or personally than the current enterprise.
Or while you started a company a couple of years ago with great intentions on how it would work as a charitable foundation, in the meantime you and your partner have become the most famous couple in the world and had to make some lifestyle decisions around this status.
All of the above is why the Duke and Duchess of Sussex, or Harry and Meghan if you insist on being informal, are dissolving one of their UK businesses.
This will leave the couple with more time to pursue their new media ventures including the Duke’s new mental health series for Apple TV called “The Me You Can’t See” which he will co-present with Oprah Winfrey.
As part of the process of liquidating the foundation, both the Duke and Duchess resigned as directors.
They launched their first charitable venture, the Sussex Royal foundation, in July 2019 after deciding to pursue their own philanthropic duties away from a joint foundation they shared with Prince William and Kate Middleton, the Duchess of Cambridge.
The charity was originally titled Sussex Royal – The Foundation – but this was later amended to become the MWX foundation, giving rise to speculation that as his formal royal titles and privileges were being withdrawn, so was the right to name any ventures as “royal”.
Chris Horner, Insolvency Director with Business Rescue Expert, said: “By choosing to close their MWX foundation through a member’s voluntary liquidation, or MVL, Harry and Meghan are choosing the most sensible and stress-free option.
“The business hasn’t filed any accounts yet but it’s safe to assume it didn’t have any critical money worries or would be unable to settle its debts within a timely period.
“This is a key point to understand – a business can only use an MVL if it is profitable or can pay off creditors with the proceeds of the dissolution.
“There are still several other appropriate methods for a business to close down, even if they have outstanding debts including bounce back loans.
“The MVL process has several legal steps that must be followed in order to be accepted but can be completed in as little as ten days if everything is in order.
“Our friend Ed can explain more. It’s no “Suits” but it’s still a great performance.”
If you’ve fallen in love with Hollywood or actual royalty, it might be hard to balance your new jetset lifestyle with the demands of running your own business.
Even though the initial publicity might be a bonus, it’s hard to keep checking inventory and staff rotas when you’re walking the red carpet.
Sometimes dissolving or closing down your business is the simplest and safest way to free up your future calendar.
Even if you haven’t met a handsome prince or princess, you might want to change your career direction. After all, that’s just what the Sussex’s have decided to do.
We offer a free, initial consultation to any business owner or director who wants to talk about their future – and how we can best help you turn ideas and plans into an effective, reality-based strategy.
Get in touch today to book your appointment. That’s more important to us than “by appointment”.