The Government’s response to the Productivity Commission Inquiry into Business Set-Up, Transfer and Closure has just been released.
Recommendation 15.1 (page 27) is for a simplified small liquidation process for companies with debts of less than $250,000.
For such companies, the government supports:
1. A substantially reduced investigation into the control of a company and use of its funds;
2. A reduction of creditor participation in the liquidation process
To offset a reduced or non-existent investigation and presumably to allay creditor concerns, the government will require directors lodge a signed form with ASIC verifying the Company’s books and records are accurate.