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Seek Legal Advice Failing to seek immediate legal advice after being served with a Statutory Demand could cause significant damage or prevent adequate preparation to have the demand set aside in time. Click here for information on Directors Duties.
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Important Points You Need To Know Before

Issuing A Statutory Demand

A creditor must be owed a debt of at least $2,000. There is no genuine dispute about the Debt. The Demand must be served on the registered office of the company. If the debtor fails to comply within the 21 days, the law presumes the debtor company is insolvent. After 21 days you may commence winding-up proceedings in the Supreme Court. If the Court is satisfied  the company is insolvent, a liquidator can be appointed to wind-up the companies affairs. You may nominate the liquidator of your own choice to be appointed. The Demand must be verified that the figures are correct unless you have a Judgement Order. The Demand may be served by post to the registered office of the company or by personally delivering a copy to the director. You have 21 days to respond to the Statutory Demand after service and apply to have it set aside.
Set Aside Applications   An Application may be filed to Set Aside the Statutory Demand because: There is a genuine dispute. There is an equal amount to the amount being claimed or reducing the claim below $2000. There is an error with the demand that causes substantial injustice to the debtor company. There is some other good reason the demand should be set aside. Quick action is required to set aside the demand as you only have 21 days under section 459G. The application may only be made within  21 days.
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