ASIC has released updated guidance on creditor-defeating dispositions (CDDs) for registered liquidators and their staff and launched a new booking system to help liquidators seeking assistance with CDD requests.
Information Sheet 261 ASIC orders about creditor-defeating dispositions (INFO 261) explains how liquidators can request ASIC to make an order in relation to a voidable creditor-defeating disposition, and how ASIC assesses those requests.
ASIC has provided liquidators with updated information in INFO 261 to help prepare requests, including:
- guidance on the supporting documents and information that should be included with the request to satisfy that the disposition meets the definition of a voidable creditor-defeating disposition, and
- options available to liquidators for obtaining company books and gathering sufficient evidence before submitting a request.
Improving the CDD request process for liquidators
ASIC updated the guidance following feedback provided as part of a review of how we administer the creditor-defeating disposition order process.
The review provided insights into the challenges liquidators face, including evidentiary requirements, information gaps and procedural issues that can affect the timely resolution of matters.
ASIC revised the guidance in INFO 261 to address common issues encountered by liquidators when identifying, investigating and submitting a request to ASIC for orders about potential creditor-defeating dispositions.
In addition to updating INFO 261, ASIC has taken several steps to improve the request process for liquidators, including:
- launching a new creditor-defeating dispositions web page, which includes guidance and practical examples that help highlight factors liquidators should consider before submitting a request.
- introducing a new booking system that allows liquidators to discuss a potential creditor-defeating disposition request before submitting the request.
Together, these changes are intended to improve the prospects of successful CDD requests being made and support the recovery of assets for creditors.
More information
- Information Sheet 261 ASIC orders about creditor-defeating dispositions (INFO 261)
- View the new creditor-defeating dispositions web page
- Access the new booking system for liquidators
