Corporations Act 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.5 - VOLUNTARY WINDING UP  

Note: This Part applies to a sub-fund of a CCIV in a modified form: see Division 5 of Part 8B.6 .

Division 3 - Creditors ' voluntary winding up  

Subdivision B - Simplified liquidation process for creditors ' voluntary winding up of an insolvent company  

SECTION 500A   LIQUIDATOR MAY ADOPT THE SIMPLIFIED LIQUIDATION PROCESS  

500A(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.

500A(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.

500A(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.