A CVL needs to be carried out by a licenced insolvency practitioner who will be regulated by a professional body to ensure that the process is dealt with properly. The liquidators have a duty to inform The Insolvency Service (which is a Government department) whether there is any evidence that the directors of a company may have acted improperly or knowingly tried to deceive or defraud creditors in any way. The Insolvency Service will look at any information which has been supplied to them, possibly contact the directors with further questions and decide whether they think a director should be disqualified for a period of time.
In addition, the onset of a CVL may prompt creditors who directors have given a personal guarantee to, to chase directors personally for their debts.