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.