A number of processes and duties to report to ASIC have been reduced with the simplified liquidation appointment.If the company is eligible, a simplified liquidation appointment is different to standard liquidation appointment through:
- Reduced investigation and reporting requirements. The requirement to provide a report on offences to the Australian Securities and Investments Commission (ASIC) is removed.
- Reduced meetings. The obligation for liquidators to convene meetings is removed.
- Removed Committees of Inspections. Creditors may no longer appoint a committee of inspection, which is currently used to advise and assist the external administrator and can approve and request certain aspects of the liquidation process.
- No Reviewing Liquidators. Creditors may no longer appoint a reviewing liquidator to review the incumbent’s remuneration.
- Fewer voidable transactions. The liquidator cannot clawback unfair preference payments from creditors not related to the company.
- Simplified dividend process. The process of creditors lodging a claim (proof of debt) and dividend payment is simplified.