Our Experience

Levi was appointed as Liquidator for multiple solvent subsidiaries within a corporate group. The Liquidation process of these entities culminated in a successful corporate simplification endeavour. Levi facilitated tax-efficient asset distribution and maximised stakeholder value amidst complex regulatory landscapes.

The Elements of a Successful Corporate Simplification

Corporate simplification is a strategic initiative aimed at streamlining operations, reducing costs, and optimising resources. Key elements include:

1. Conducting a thorough evaluation of subsidiary entities to identify solvent and dormant companies suitable for liquidation or deregistration. Removing redundant entities simplifies group structures, reduces unnecessary compliance costs and enhances profitability.
2. Ensuring strict compliance with ASIC guidelines and local regulatory requirements to facilitate liquidation processes and timely deregistration.
3. Structuring asset distribution and liquidation processes to minimise tax liabilities, thereby maximising returns for shareholders and stakeholders. This includes obtaining tax clearances and managing asset distribution efficiently through a Members’ Voluntary Liquidation (MVL).
4. Prioritising clear and transparent communication with stakeholders throughout the simplification process, ensuring alignment with corporate objectives and managing expectations effectively.

How to do a Corporate Simplification

Achieving a successful corporate simplification involves a detailed, multi-stage process:

1. Conduct a thorough assessment of the group’s operations, regulatory compliance, taxation, human resources, finance, legal matters and governance. This assessment helps in defining the optimal corporate structure.
2. Gather comprehensive details on all entities within the organisation, including current business activities, assets, liabilities, employee details, and trading history. Utilising workshops and questionnaires can streamline this data collection process.
3. Formulate a detailed plan to tackle identified issues. This includes reviewing tax standings, statutory records, third-party approvals, supplier agreements, employee contracts, intellectual property considerations, and determining the appropriate method for asset transfers.
4. Execute the Liquidation. This involves asset transfers, liability settlements, advising authorities and interested parties, transferring employees, realising remaining assets, and obtaining necessary consents and exemptions. Prepare documentation to advise regulatory authorities of voluntary liquidation and deregistration.
5. Upon completing the MVLs, proceed with applying for voluntary deregistration. The company must satisfy specific criteria, including cessation of business operations, possessing assets valued under $1,000, settling all financial obligations and penalties, and not being involved in any legal proceedings.

Why choose us?

At Levi Consulting, our experience in managing complex corporate simplification projects is unmatched. We have successfully navigated numerous liquidation and deregistration processes, delivering tangible benefits in efficiency and cost savings.

For further insights into our expertise in corporate simplification matters, view our brochure: