What is Simplified Liquidation?
Simplified Liquidation is a streamlined version of the current more comprehensive Creditors Voluntary Liquidation (CVL) process. It is the winding-up of a company when it has creditors of less than $1 Million it cannot pay.
The concept of a Simplified Liquidation was announced by the Federal Government on 24 September 2020 with the intention to develop a simple and hence cheap liquidation process with Small Business in mind.
We think this is a fantastic development for Australian Small Business. At Dissolve we have worked for over 10 years to develop streamlined processes to bring the costs down for Small Business. We welcome the introduction of new legislation allowing us to take this even further.
Dissolve conducts hundreds of liquidations of small businesses every year. Our highly systematised approach allows us to complete the process for small to medium businesses quickly and efficiently, and therefore at the lowest possible cost, making us the prefect choice for a Simplified Liquidation.
How Does Simplified Liquidation Differ From CVL?
Less reporting to the regulator
The liquidator is only required to report(under section 533) potential misconduct where there are reasonable grounds to believe that misconduct has occurred.
What Will it Cost?