The update explains what evidence a request needs and how liquidators can obtain company books. ASIC has also introduced a booking system so liquidators can discuss a request before lodging it. The practical effect is that pre-insolvency asset transfers can be unwound through an administrative order, which is often quicker and cheaper than court proceedings.

What happened

Since 2020, the Corporations Act has made creditor-defeating dispositions voidable. Broadly, a creditor-defeating disposition is a disposal of company property for less than the lesser of its market value and the best price reasonably obtainable, which prevents, hinders or significantly delays that property becoming available to creditors in a winding up (section 588FDB). Such a disposition can be voidable where it was made while the company was insolvent (or made it insolvent) in the 12 months before the winding up began, or where the company entered external administration within 12 months as a result (section 588FE(6B)).

ASIC can order the recipient to return the property, pay an amount reflecting the benefit received, or transfer property representing the proceeds (section 588FGAA). It can act on its own initiative or at a liquidator’s request. ASIC’s updated Information Sheet 261 now sets out:

• the supporting documents and information a request should include, with one request for each disposition
• options for liquidators to obtain company books and gather sufficient evidence
• a new web page of practical examples, and a system for booking a pre-lodgement meeting with ASIC

ASIC says it relies only on the information in the liquidator’s request, and that the company’s books and records are generally the most credible evidence.

Why it matters

Unwinding an undervalue transfer used to mean litigation that an assetless liquidation often could not fund. The ASIC order process, together with the Assetless Administration Fund, gives liquidators and creditors a realistic alternative. The time limits are tight for everyone. A liquidator can request an order up to the later of three years after the relation-back day or 12 months after a liquidator is first appointed. A recipient who wants to challenge an order generally has 28 days to apply to the Administrative Review Tribunal, or 60 days to apply to the court (section 588FGAE). Failing to comply with an order is an offence (section 588FGAC).

There are limits

ASIC cannot make orders for dispositions made before 18 February 2020. Dispositions made by an administrator or liquidator, or under a deed of company arrangement, restructuring plan or scheme of arrangement, are excluded, and so are restructures carried out under safe harbour.

What you should do now

• Directors: before moving assets to a related entity, get advice on value and solvency, and document any safe harbour restructure at the time.
• If you receive an ASIC notice about a proposed order: act immediately. The review windows are short.
• Lenders: when taking security over property recently transferred within a group, check the price paid and the transferor’s solvency, and keep records showing you gave value in good faith.
• Creditors of an assetless company: ask the liquidator whether an ASIC request, with funding from the Assetless Administration Fund, is being considered.
• Liquidators: use the pre-lodgement meeting and build the request around the company’s books.

If you would like to discuss how this affects you, please contact Angelo Conti on +61 3 9242 4757 or angelo.conti@madgwicks.com.au

Source: ASIC, “ASIC releases updated guidance on creditor-defeating dispositions for registered liquidators” (9 October 2026), https://www.asic.gov.au/about-asic/news-centre/news-items/asic-releases-updated-guidance-on-creditor-defeating-dispositions-for-registered-liquidators/; ASIC Information Sheet 261, ASIC orders about creditor-defeating dispositions.

The information provided in this article is general in nature and cannot be relied on as legal advice, nor does it create an engagement. Please contact one our lawyers listed above for advice about your specific situation.