What is the new simplified liquidation process?

Should the company meet certain eligibility criteria, a liquidator may adopt the simplified liquidation process rather than the standard liquidation appointment.

The criteria are:

  • the company has passed, a special resolution that the company be wound up voluntarily;
  • the directors give the liquidator a report concerning the company’s affairs and a declaration that the company will be eligible for the simplified liquidation process;
  • the company is insolvent;
  • the company’s total liabilities do not exceed $1 million;
  • no director has been a director of a company that has previously used the simplified liquidation process or a debt restructuring process; and
  • the company’s tax lodgments are up to date.