Flowchart 2A: Liquidator in a creditors’ voluntary winding up (simplified liquidation process)

This flowchart and the explanatory text should be read with Information Sheet 29 External administration, controller appointments and schemes of arrangement: Most commonly lodged forms (INFO 29).

Unless otherwise permitted by the Corporations Act 2001 (Corporations Act), a person must not act as a creditors’ voluntary liquidator unless they are a registered liquidator: section 532(1) and (8).

Flowchart 2A: Liquidator in a creditors’ voluntary winding up – Simplified liquidation process

* ASIC PNW = ASIC published notices website.

Explanation of Flowchart 2A: Liquidator in a creditors’ voluntary winding up (simplified liquidation process)[1]

Step

Form or notice

Notes

1

Form 205
Notification of resolution

Legislation: section 491(2)(a). Form 205 is an ASIC-approved form.

Requirement: Lodgement is mandatory.

Tick-a-box choice (Subject(s) of the resolution): ‘Creditors’ voluntary winding up’ (or ‘Voluntary winding up by creditors’ on paper form).

Lodgement: The company must lodge no more than 7 days after passing the resolution for the voluntary winding up by creditors at the members’ meeting. Online lodgement is preferred.

Note: Under section 198G the powers of the directors are suspended, and the liquidator has the power to lodge under sections 198G, 506(1) and 477(2)(m).

Company status:[2] If this is the first external administrator appointment to the company, the company status will change from REGD to EXAD after processing of the first of Form 205 or Form 505 (Step 2), and create a new appointment for the liquidator.

and …

ASIC published notices website[3]
Notice of appointment as liquidator

Legislation: section 491(2)(b) and regulation 5.5.01.

Requirement: Publication is mandatory.

Publication: The company must publish the notice on the ASIC published notices website by the end of the next business day after a liquidator is appointed.

Note: The liquidator has the power to lodge under sections 198G, 506(1) and 477(2)(m).

2

Form 505
Notification of appointment or cessation of an external administrator (appointment)

Legislation: section 537(1). Form 505 is an ASIC-approved form.

Requirement: Lodgement is mandatory.

Tick-a-box choice (Details of appointment): Liquidator of creditors’ voluntary liquidation’ (and then for method of appointment, tick ‘other appointment’ on online form).

Lodgement: The liquidator must lodge within 14 days after appointment. Online lodgement is preferred.

Company status:[2] If this is the first external administrator appointment to the company, the company status will change from REGD to EXAD after processing of the first of Form 205 (Step 1) or Form 505, and create a new appointment for the liquidator.

3

Form 507
Report on company activities and property (ROCAP Part A)

Legislation: section 497(6). Form 507 is an ASIC-approved form.

Requirement: Lodgement is mandatory.

Tick-a-box choice (Reason for report): ‘s497(4) Appointment of liquidator – creditors’ voluntary winding-up’.

Lodgement: The liquidator must lodge no more than 10 business days after receiving the report. Online lodgement is preferred.

4

Form 5604
Information about the company’s affairs sent to creditors

Legislation: section 497(1)(b). Form 5604 is an ASIC administrative form.

Requirement: Lodgement is mandatory.

Lodgement: The liquidator must lodge within 10 business days after the day of the meeting of the company at which the resolution for voluntary winding up is passed. Online lodgement is preferred.

Note: Form 509 and a list setting out the names, addresses and estimated amounts of the claims of all creditors must be attached to a Form 5604. You may also attach a copy of any other document that accompanied the notice sent to creditors; however, the Form 5604 and all attachments will be available to the public.

with …

Form 509
Presentation of summary of affairs of a company

Legislation: section 497(1)(a)(i). Form 509 is an ASIC-approved form.

Requirement: Lodgement is mandatory.

Lodgement: The liquidator must lodge within 10 business days after the day of the meeting of the company at which the resolution for voluntary winding up is passed. Online lodgement is preferred.

and …

List setting out the names of all creditors, the addresses of those creditors and the estimated amounts of their claims

Legislation: section 497(1)(a)(ii).

Requirement: Lodgement is mandatory.

Lodgement: The liquidator must lodge within 10 business days after the day of the meeting of the company at which the resolution for voluntary winding up is passed. Online lodgement is preferred.

Note: The list must identify any creditors that are related entities of the company: section 497(2).

5

Form 531
Copy of declaration of relevant relationships and/or
declaration of indemnities

Legislation: section 506A(3). Form 531 is an ASIC administrative form.

Requirement: Lodgement is mandatory.

Tick-a-box choice (Type of appointment): ‘Liquidator of creditors’ voluntary liquidation’ OR ‘Incoming Administrator proposed under section 90-35(1)(b) of Schedule 2’ if you are replacing an existing appointee.

Lodgement: The liquidator must lodge a copy of the declaration as soon as practicable after making the declaration. Online lodgement is required.

Note 1: We consider that ‘as soon as practicable’ should not be more than 2 business days after making the declaration.

Note 2: If a replacement declaration is made, the liquidator must also lodge the updated declaration: section 506A(6).

6
(contingent)

Meeting of creditors convened

ASIC published notices website[3]
Notice of meeting of creditors or members and creditors

Legislation: section 75-10 of Schedule 2 and Rule 75-40 of the Practice Rules.

Requirement: Publication is mandatory, contingent on meeting being convened.

Publication: The convenor must publish the notice of meeting on the ASIC published notices website at least 10 business days before the meeting is held.

Note: A meeting cannot be convened once the simplified liquidation process is adopted.

and …

Form 5011
Copy of minutes of meeting

Legislation: Rule 75-145(1)(c) of the Practice Rules. Form 5011 is an ASIC administrative form.

Requirement: Lodgement is mandatory, contingent on the meeting being convened.

Tick-a-box choice (Details of minutes of meeting): ‘No’, the minutes are not being lodged for a meeting convened under section 436E or 439A of the Corporations Act.

Lodgement: The person presiding at the meeting must lodge minutes of the meeting of creditors within 1 month after the end of the meeting. Online lodgement is preferred.

Note 1: The meeting must be adjourned and reconvened if there is no quorum after 30 minutes: Rule 75-105(4). If a meeting is adjourned, the minutes are lodged at the conclusion of the reconvened meeting: Rule 75-145.

Note 2: If a reconvened meeting does not have a quorum, the meeting lapses: Rule 75-105(8). The minutes of a lapsed meeting must be lodged at the end of the meeting: Rule 75-145.

Note 3: Under Rule 75-145(4), a record of persons present at a meeting must be kept as part of the minutes. Form 5011 provides further guidance about this requirement.

7

Simplified liquidation process adopted

EX08 (Form 5611)
Notice of adoption of or ceasing simplified liquidation process (adoption of)

Legislation: regulation 5.5.06. Form 5611 is an ASIC-approved form.

Requirement: Lodgement is mandatory.

Lodgement: The liquidator must lodge within 2 business days after the day on which the liquidator adopts the simplified liquidation process. Online lodgement via EX08 Transaction is required.

Note: The Directors’ declaration of eligibility for simplified liquidation process is lodged with this form.

8

Form 5601
Statutory report by a liquidator to creditors

Legislation: section 70-50 of Schedule 2 and Rule 70-40(2) of the Practice Rules. Form 5601 is an ASIC-approved form.

Requirement: Lodgement is mandatory.

Lodgement: The liquidator must lodge at the same time as the report is provided to creditors. Online lodgement is required.

A report to creditors under Rule 70-40(2) must be provided to creditors no more than 3 months after the liquidator is first appointed (including where a replacement liquidator is appointed).

Note: The 3-month period commences when the liquidator is first appointed and not when the simplified liquidation process is adopted.

9
(contingent)

Proposal made for a resolution without a meeting

Form 5022
Outcome of proposal to creditors or contributories

Legislation: section 75-40 of Schedule 2, Rule 75-130 (creditors) and Rule 75-135 (contributories) of the Practice Rules. Form 5022 is an ASIC-approved form.

Requirement: Lodgement is mandatory, contingent on whether a resolution is proposed without a meeting of creditors or contributories.

Lodgement: The liquidator must lodge within 5 business days of the outcome being known. Online lodgement is required.

10
(contingent)

Insolvency initial statutory report required (due to possible misconduct)

Submit insolvency initial statutory report (under sections 533(1), 438D(1) or 422(1) of the Corporations Act)

Legislation: regulation 5.5.05.

Requirement: Lodgement is mandatory, contingent on the circumstances arising (if there are reasonable grounds to believe that a relevant person may have engaged in conduct constituting an offence in relation to the company that has had, or is likely to have, a material adverse effect on the interests of the creditors).

Tick-a-box choice (Under what provision are you lodging this report?): ‘Regulation 5.5.05 (liquidator of a simplified liquidation reports)’.

Lodgement: The liquidator must lodge as soon as practicable, and in any event within 6 months, after first forming the opinion. Online lodgement is preferred via the ASIC Regulatory Portal.

Note 1: A freeform written report can be lodged to comply with regulation 5.5.05, but submitting an insolvency initial statutory report is preferred.

Note 2: See Regulatory Guide 16 External administrators: Reporting and lodging (RG 16) for more details.

11

Form 5602
Annual administration return

Legislation: section 70-5(3) of Schedule 2. Form 5602 is an ASIC-approved form.

Requirement: Lodgement is mandatory.

Lodgement: The liquidator must lodge within 3 months after the end of the ‘administration return year’, which is the period of 12 months beginning on the day of appointment and each subsequent period of 12 months.

The liquidator must also give notice to the creditors that a return has been lodged, when next forwarding a report, notice of meeting, notice of call or dividend: section 70-5(6)(b).

Online lodgement as structured data is required.

Note: See the additional guidance on INFO 29 for information on lodging Form 5602 where a replacement registered liquidator is appointed.

12 (select one of Steps 12a or 12b, as required by the circumstances):

12a

Adoption of the simplified liquidation process continues until finalisation

Form 505
Notification of appointment or cessation of an external administrator (cessation)

Legislation: section 537(2). Form 505 is an ASIC-approved form.

Requirement: Unless the liquidator resigns or is removed, there is no statutory requirement to lodge Form 505 at the finalisation of a liquidation; however, the liquidator may choose to avoid the role becoming current again if the company registration is reinstated under section 601AH(2) and the liquidator is not required to act.

Tick-a-box choice (Ceasing, resignation or removal): ‘Cease’ (or ‘Resignation or removal of liquidator (including court-appointed liquidator)’ on paper form).

Lodgement: The liquidator must lodge within 14 days after cessation. Online lodgement is preferred.

Note: If you intend to lodge a Form 505, you should lodge that form before lodging a Form 5603.

Go to Step 14

12b

Simplified liquidation process ceases

EX08 (Form 5611)
Notice of adoption of or ceasing simplified liquidation process (ceasing)

Legislation: regulation 5.5.08. Form 5611 is an ASIC-approved form.

Requirement: Lodgement is mandatory.

Lodgement: The liquidator must lodge within 2 business days after the day on which the liquidator ceases to follow the simplified liquidation process. Online lodgement via EX08 Transaction is required.

13
(Creditors’ voluntary liquidation)

See Step 7 in Flowchart 2.

Please see Step 7 in Flowchart 2 for the lodgements required from this step onwards. (Do not go to Step 14 in this flowchart.)

14
(contingent)

Deregistration by court order

Form 571
Office copy of court order varying the time to deregister a company

Legislation: section 509(3) and regulation 1.0.21.

Note: ASIC has applied the number ‘571’ to lodgement of the required information for administrative purposes (i.e. there is no actual Form 571).

Requirement: Lodgement is mandatory, contingent on the circumstances arising (if a court varies the time to deregister the company).

Lodgement: The applicant must lodge an office copy of the court order within 10 business days after the court makes the order. An office copy of a court order must bear an originally stamped seal or an electronic seal of the registry of the court.

Company status:[2] The company status will change from EXAD to DRGD on the day specified by the court. The court must make the order before the end of the original deregistration period (i.e. within 3 months after lodgement of Form 5603).

with …

Form 105
Cover page for office copy of a court order

Legislation: regulation 1.0.21. Form 105 is prescribed by the Corporations Regulations 2001 (Corporations Regulations).

Requirement: Lodgement is mandatory, contingent on the circumstances arising (if a court varies the time to deregister the company).

Tick-a-box choice (Type of court order – external administration): ‘s509(7) varying the time to deregister a company’.

Lodgement: The applicant must lodge Form 105 with the office copy of the court order. An office copy of a court order must bear an originally stamped seal or an electronic seal of the registry of the court.

15

Form 5603
End of administration return

Legislation: section 70-6(2) of Schedule 2. Form 5603 is an ASIC-approved form.

Requirement: Lodgement is mandatory.

Lodgement: The liquidator must lodge no more than 1 month after the end of the external administration.

The liquidator must also give notice to the creditors that a return has been lodged, if requested to do so in writing: section 70-6(4).

Online lodgement as structured data is required.

Company status:[2] The company status will change from EXAD to DRGD 3 months after lodgement of Form 5603: section 509(1).

Note: If you intend to lodge a Form 505 Notification of appointment or cessation of an external administrator, you should lodge that form before lodging a Form 5603.

More information

For more information on external administration, visit www.asic.gov.au/insolvency or contact ASIC on 1300 300 630 or online at www.asic.gov.au/question.

 


[1] Types of forms: Information is lodged with, and received by, ASIC for recording on the company register as ‘forms’. Forms fall into one of the following categories:

  • a prescribed form, which is a form prescribed in Schedule 2 to the Corporations Regulations, or
  • an ASIC-approved form, which is a form that is not prescribed, but is one that ASIC may approve under section 350 of the Corporations Act and section 100-6 of Schedule 2 to the Corporations Act, or
  • an ASIC administrative form, which is a form that is neither prescribed nor approved, but is one that has been given an administrative form number by ASIC for the purpose of identifying the type of information being lodged (e.g. Form 5011).

[2] Company status: Certain form lodgements cause company status changes. These may not apply if a company is subject to another external administration. The status of a company is recorded on ASIC’s database as:

  • REGD – registered
  • EXAD – under external administration and/or controller appointed
  • SOFF – strike-off action in progress
  • DRGD – deregistered

[3] ASIC published notices website: An ASIC-hosted website for the publication of notices, including insolvency and external administration-related notices, required to be published in the prescribed manner under Part 5.1, 5.3A, 5.3B, 5.4, 5.4B, 5.4C, 5.5, 5.6, 5.8 or 5A.1 of the Corporations Act, Schedule 2, the Practice Rules or lodged in accordance with regulation 5.6.75 of the Corporations Regulations.

Last updated: 20/07/2021 09:36