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.

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