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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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GENERAL & COMMERCIAL LAWYERS | SYDNEY | NORWEST BUSINESS PARK| BAULKHAM HILLS
RESOLUTE LAWYERS
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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