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Simplified liquidation
Practical Law ANZ Glossary w-029-7254 (Approx. 3 pages)
Glossary
Simplified liquidation
A type of liquidation available to small businesses with simple affairs under Subdivision B, Division 3, Part 5.5 of the Corporations Act 2001 (Cth) (CA 2001) (and related subordinate legislation).
The process is available within the existing creditors' voluntary winding up regime where the company meets the eligibility criteria in section 500AA of the CA 2001 (including having liabilities not exceeding $1 million).
The features of the simplified liquidation process include:
- Creditors' meetings are generally not held (information and voting are handled electronically).
- No committees of inspection or reviewing liquidators (although the court will retain its supervisory powers).
- Limitations on the liquidator's ability to recover voidable transactions.
- Reduced obligations on the liquidator to investigate the company's affairs and make reports to the Australian Securities and Investments Commission.
For further information, see:
- Practice notes or Practice note: overviews: