The Simplified Liquidation Programme (SLP), administered by the Insolvency and Public Trustee’s Office (IPTO), has been extended beyond its original COVID-19 sunset and refined to keep it focused on small, straightforward insolvencies.
Key Revisions
- Extended: SLP continues as a simpler, lower-cost alternative to a standard creditors’ voluntary liquidation under the IRDA.
- Tighter eligibility: The S$2 million liabilities cap remains, but companies with complex assets, significant related-party transactions or incomplete accounting records may be rejected.
- Enhanced screening: IPTO reviews antecedent transactions, director conduct, asset dissipation risk and pending litigation. Material concerns may require a standard liquidation instead.
- Director duties unchanged: Wrongful trading, record-keeping and fiduciary obligations continue to apply in full.
What This Means
Companies should expect closer scrutiny of their financial records and governance. An early professional assessment is recommended before applying. Contact us to discuss whether SLP is suitable for your company.