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.