Key Takeaways
- A reviewing liquidator is a registered liquidator appointed by ASIC under Subdivision C of Division 90 of Schedule 2 to the Corporations Act 2001 (Cth) to examine and report on the conduct of an external administration.
- Creditors, officers, and other parties with a financial interest in the company can apply to ASIC — the process is separate from a court application.
- ASIC published new guidance in June 2026 (Information Sheet 296 — INFO 296) clarifying how it assesses applications and when it is likely or unlikely to appoint a reviewing liquidator.
- The reviewing liquidator’s role is investigative, not replacement — they review the external administrator’s conduct and report to ASIC and creditors.
- Creditors who believe a liquidator is acting improperly, failing to investigate transactions, or charging excessive remuneration now have a clearer pathway to challenge that conduct.
When a company goes into liquidation, voluntary administration, or receivership, creditors are often left wondering whether the external administrator is doing everything they should. Proofs of debt go unacknowledged. Potential unfair preference recoveries go uninvestigated. Remuneration approvals look generous. In most cases, creditors feel powerless.
They are not.
Under Subdivision C of Division 90 of Schedule 2 to the Corporations Act 2001 (Cth), the Australian Securities and Investments Commission (ASIC) has the power to appoint a registered liquidator to act as a reviewing liquidator to review the conduct of an external administration. In June 2026, ASIC published new guidance — Information Sheet 296 (INFO 296) — clarifying precisely how this power works and how creditors and other eligible applicants can use it.
This guide explains what a reviewing liquidator is, who can apply, how the process works, what ASIC considers, and what happens if ASIC decides to appoint one.
What Is a Reviewing Liquidator?
A reviewing liquidator is a registered liquidator appointed by ASIC — not by a court — to independently examine the conduct of an external administrator. The role is investigative and supervisory. A reviewing liquidator does not replace the existing administrator; they sit alongside them, examine their conduct, and report.
External administration includes:
- Voluntary administration
- Creditors’ voluntary liquidation
- Court-ordered winding up
- Deed of company arrangement (DOCA)
The power has existed since 2017 but was little-known and rarely used because ASIC had not published clear guidance on how it applied the power. That changed in June 2026, when ASIC published INFO 296 following a formal consultation process (Consultation Paper 49) in which submissions were received from registered liquidators, insolvency practitioners, and creditor representatives.
Who Can Apply to ASIC for a Reviewing Liquidator?
ASIC’s INFO 296 guidance identifies eligible applicants as persons who have a financial interest in the company’s external administration. This includes:
- Creditors — both secured and unsecured. This is the most common category of applicant. If you are owed money by a company in administration and you have concerns about how that administration is being conducted, you can apply.
- Officers of the company — directors and secretaries who have a legitimate interest in the outcome of the administration.
- Members and contributories — in rare circumstances where there is a realistic prospect of a surplus to shareholders.
- Other parties with a financial interest — assessed case by case by ASIC.
Notably, ASIC can also act on its own initiative without any application from a creditor. In practice, however, most reviewing liquidator appointments follow a creditor application.
What Matters Can a Reviewing Liquidator Examine?
A reviewing liquidator can examine a wide range of conduct, but ASIC’s INFO 296 guidance confirms that the scope of review is determined by ASIC at the time of appointment. Common matters include:
- Failure to investigate potential voidable transactions — such as unfair preferences (s 588FA), uncommercial transactions (s 588FB), or creditor-defeating dispositions (s 588GAA)
- Excessive or unsupported remuneration — where a creditor believes the liquidator’s fees are disproportionate to the work performed or the size of the estate
- Failure to pursue recoveries — insolvent trading claims against directors (s 588G), or claims against related parties
- Conflicts of interest — where the appointed administrator has a pre-existing relationship with the company, its directors, or major creditors
- Inadequate disclosure — failure to properly disclose the Declaration of Independence, Relevant Relationships and Indemnities (DIRRI) or to update it when new relationships arise
- Mismanagement of company assets — disposal of assets below market value, failure to recover property, or improper payment of priority creditors
The reviewing liquidator does not take over the administration. They review the specific matters identified by ASIC, report their findings, and ASIC then decides what action to take.
How to Apply to ASIC for a Reviewing Liquidator
Under INFO 296, an application to ASIC for appointment of a reviewing liquidator should include:
- Your identity and interest — who you are and why you have standing to apply (e.g., proof of debt showing you are a creditor)
- The company details — ACN, name, name of the external administrator, and the type of external administration
- The specific concerns — clearly articulated, with supporting evidence where available. Vague or unsupported allegations are unlikely to lead to an appointment.
- What you want reviewed — the specific conduct or transactions you believe require independent scrutiny
- Any other relevant information — including whether you have already raised these concerns with the external administrator and what response (if any) you received
Applications are assessed by ASIC on their merits. There is no statutory timeframe for ASIC to decide, though INFO 296 indicates that ASIC aims to assess straightforward applications within a reasonable period. ASIC may seek additional information from you, the external administrator, or both.
What Factors Does ASIC Consider?
ASIC’s INFO 296 guidance identifies the key factors it weighs when deciding whether to appoint a reviewing liquidator. These include:
- Whether there is a genuine issue with the conduct of the administration — ASIC will assess whether the concerns raised have a credible factual and legal basis, not whether they are merely disagreements with the administrator’s commercial judgments
- The financial position of the company — whether there are sufficient assets to fund a review, and whether the cost of the review is proportionate to the potential benefit to creditors
- The stage of the administration — ASIC is less likely to appoint a reviewing liquidator if the administration is nearly complete or if the relevant decisions are already final
- Whether other remedies are available — for example, whether the creditor could raise the issue at a creditors’ meeting, apply to court to remove the administrator, or complain to ARITA (the Australian Restructuring Insolvency & Turnaround Association)
- Conflicts of interest of the applicant — ASIC considers whether the applicant has their own interest in the outcome that might make their concerns less objective
When Is ASIC Less Likely to Appoint a Reviewing Liquidator?
INFO 296 is explicit that ASIC will generally not appoint a reviewing liquidator in the following circumstances:
- The concern relates to a disagreement with the administrator’s commercial or strategic decisions (rather than an allegation of misconduct or failure to perform a statutory obligation)
- The company has no assets and the administration is effectively at an end
- The applicant has not first raised the concern with the external administrator and given them an opportunity to respond
- The same concern has already been reviewed by a court
- The applicant is using the process to delay or frustrate the administration (for example, a director seeking to prevent recovery actions against them)
- The application is clearly vexatious or frivolous
What Happens If ASIC Appoints a Reviewing Liquidator?
If ASIC decides to appoint a reviewing liquidator, it will select a registered liquidator from the Reviewing Liquidator Panel — a panel of independent practitioners established on 1 July 2024. The reviewing liquidator’s costs are generally borne by the company’s assets, not by the creditor who applied.
The reviewing liquidator will:
- Be given access to the company’s books and records
- Have the power to examine the external administrator’s conduct in relation to the matters specified by ASIC
- Report their findings to ASIC and to creditors
The external administrator is required to cooperate fully with the reviewing liquidator and to provide access to all relevant documents and information. Failure to cooperate can itself give rise to regulatory action by ASIC.
After receiving the reviewing liquidator’s report, ASIC may take further action. This might include referring the matter to ASIC’s enforcement team, cancelling or suspending the external administrator’s registration, or taking no further action if the review finds the administration has been properly conducted.
How Does This Compare to Other Creditor Remedies?
Creditors who are unhappy with the conduct of an external administration have several options. The reviewing liquidator mechanism sits within a broader suite of remedies:
| Remedy | Mechanism | Who Decides | Cost to Creditor |
|---|---|---|---|
| ASIC reviewing liquidator | INFO 296 application | ASIC | Generally nil (company assets) |
| Court removal of liquidator | s 473A Corporations Act | Court | Creditor funds litigation |
| ARITA complaint | ARITA Code of Professional Practice | ARITA | Nil |
| Creditors’ meeting resolution | Vote to replace administrator | Creditors (majority) | Nil |
| ASIC report (external administration) | Contact ASIC directly with allegations | ASIC | Nil |
The reviewing liquidator mechanism is particularly valuable where:
- You lack the resources to fund court proceedings to remove the liquidator
- You believe there is specific conduct that warrants independent scrutiny but it has not been addressed through normal creditor channels
- You have evidence of a potential conflict of interest or a failure to investigate recoverable transactions
Practical Steps for Creditors Who Have Concerns
If you are a creditor and you have concerns about how a liquidation or voluntary administration is being conducted, here is a practical six-step approach:
- Raise concerns in writing with the external administrator first. ASIC expects applicants to have done this before applying. Keep a copy of your letter and any response.
- Attend and participate in creditors’ meetings. Vote on remuneration resolutions. Ask questions. Request specific information. Place your concerns on the record.
- Review the DIRRI and remuneration reports. These documents must be disclosed by the external administrator. If relationships are not disclosed, or remuneration appears excessive, you have a basis for concern.
- Obtain legal advice early. An insolvency lawyer can assess whether your concerns have legal merit and help you frame an application to ASIC in the most persuasive way.
- Lodge an application with ASIC. Follow the INFO 296 guidance. Be specific about what conduct you want reviewed and why it raises a genuine concern about the external administrator’s performance of their duties.
- Consider parallel remedies. An ASIC complaint, an ARITA complaint, and a court application are not mutually exclusive. In serious cases, multiple avenues pursued simultaneously can be appropriate.
Frequently Asked Questions
Q: Does applying to ASIC for a reviewing liquidator cost anything?
A: There is no application fee payable to ASIC. If ASIC appoints a reviewing liquidator, the reviewing liquidator’s costs are generally paid from the company’s assets, not by the applicant. However, you should budget for legal costs in preparing a well-evidenced application.
Q: Can a director apply for a reviewing liquidator to stop a liquidator suing them?
A: ASIC’s INFO 296 guidance is explicit that it will not appoint a reviewing liquidator where the application is designed to frustrate or delay legitimate recovery actions. A director who is a defendant in insolvent trading proceedings, for example, would not ordinarily be an appropriate applicant. ASIC considers the motivation and standing of each applicant carefully.
Q: How long does ASIC take to decide?
A: There is no statutory timeframe. ASIC aims to process straightforward applications within a reasonable period and may seek further information before deciding. If the administration is time-critical (for example, a DOCA vote is imminent), you should flag this clearly in your application and seek legal advice about whether an urgent court application might also be appropriate.
Q: What is the difference between a reviewing liquidator and a court-appointed replacement liquidator?
A: A reviewing liquidator appointed by ASIC does not replace the existing external administrator. Their role is to review specific conduct and report. A court-appointed replacement liquidator (under s 473A of the Corporations Act) does replace the existing administrator. Court removal is more powerful but more expensive and requires the court to be satisfied of cause for removal, which is a higher threshold than ASIC’s reviewing appointment process.
Q: Can a creditor use the reviewing liquidator mechanism for a voluntary administration?
A: Yes. ASIC’s power to appoint a reviewing liquidator applies to all forms of external administration, not just liquidation. This includes voluntary administration and DOCAs.
Creditors and directors involved in insolvency proceedings often face complex litigation decisions about when to challenge or investigate a liquidator’s conduct. For broader commercial disputes arising from a liquidation or voluntary administration, Boss Lawyers’ commercial litigation team can advise on all available legal remedies.
This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances.
If you are a creditor with concerns about the conduct of a liquidation or voluntary administration, Boss Lawyers’ insolvency team can advise you on your options and help you prepare an application to ASIC or pursue other remedies. Call us on 1300 267 711 or contact us online.
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