Liquidator may adopt the simplified liquidation process
(1) The liquidator may adopt the simplified liquidation process for the purpose of winding up the affairs and distributing the property of a company in a creditors’ voluntary winding up, if the liquidator believes on reasonable grounds that the eligibility criteria are met in relation to the company. (2) However, the liquidator must not adopt the simplified liquidation process if: (aa) the company is, or is a related body corporate of, a body regulated by APRA (within the meaning of the Australian Prudential Regulation Authority Act 1998); or (a) more than 20 business days have passed since the day on which the triggering event occurred; or (b) the liquidator has not given each member and creditor of the company notice in accordance with subsection (3); or (c) at least 25% in value of the creditors request the liquidator under section 500AB not to follow the simplified liquidation process in relation to the company. (3) At least 10 business days before adopting the simplified liquidation process, the liquidator must give each member and creditor of the company notice in writing that includes the following: (a) a statement that the liquidator believes on reasonable grounds that the eligibility criteria for the simplified liquidation process will be met in relation to the company when the process is adopted; (b) an outline of the simplified liquidation process containing the prescribed information (if any); (c) a statement that the liquidator will not adopt the simplified liquidation process if at least 25% in value of the creditors direct the liquidator in writing not to do so; (d) prescribed information on how a creditor may give a direction in writing not to adopt the simplified liquidation process.
Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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