Statutory Demand Law in Australia

More documents

Recommendations

Info

What is a winding up order? ...................................................................................................... 34 Can I issue a statutory demand? ............................................................................................... 34 What is Considered a Debt? ....................................................................................................... 34 What is the Amount of Debt Being Claimed? .......................................................................... 34 What Form Should a Statutory Demand Take? ...................................................................... 35 What are the Implications of Ignoring a Statutory Demand? ................................................ 35 Can the 21 days in which to comply with a Statutory Demand be extended? ....................... 35 Do I need a Judgment or Affidavit to make a Statutory Demand? ........................................ 35 What is the Presumption of Insolvency if Demand is Unpaid?............................................... 36 How long does a Creditor have to Lodge a Winding up Application? ................................... 36 The Form 509H ................................................................................................................................... 37 The Form 7 .......................................................................................................................................... 39 Disclaimer The content of this eBook is for general information purposes only. It is NOT a substitute for qualified legal advice. We strongly recommend seeking independent legal advice from a suitably qualified professional. All circumstances are different, the law changes, and you will need professional legal advice based on the facts of your particular matter. 3
Statutory Demands A statutory demand is a written request for the payment of debts that are owed by an insolvent company, under section 459E of the Corporations Act 2001 (Cth). This complete guide to statutory demands is one of the most comprehensive free guides to statutory demands in Australia. This guide will look at how statutory demands work and when it’s appropriate to use these demands - how to draft a statutory demand - how to serve a statutory demand - how to withdraw a statutory demand - and more. We offer professional advice and assistance in all things related to statutory demands What is a Statutory Demand? As mentioned above, a statutory demand is a demand for payment, issued by a creditor to a company debtor. The statutory demand requires the debtor to do one of the following: 1. Pay the debt; or 2. Ask the issuer to withdraw the demand; or 3. Secure or compound for the debt; or 4. Apply to set the statutory demand aside. The debtor company has strictly 21 days to do the above. Failure to do one of these things raises the legal presumption that the company is insolvent. With the legal presumption raised the creditor can apply to the Federal Court or the Supreme Court for an order that the company be wound up in insolvency. What is the Statutory Demand Process? This complete guide will outline the formal requirements and the process of issuing a statutory demand including how to draft a statutory demand. We will show you how to comply with the statutory demand if you have been served and the consequences of non-compliance with the demand. We will also show you how to correctly serve the statutory demand, and how to request that the statutory demand be withdrawn. This guide will not talk about setting aside a statutory demand, which has been addressed in our complete guide to setting aside statutory demands. Before we start, we must first consider the elements of eligibility to issue a statutory demand. 4
Page 1 and 2: COMPLETE GUIDE TO STATUTORY DEMANDS
Page 3: Within 21 Days after Service on the
Page 7 and 8: If you satisfy the requirements abo
Page 9 and 10: There have been cases where the inc
Page 11 and 12: (b) a misstatement of an amount or
Page 13 and 14: In Topfelt Pty Limited v The State
Page 15 and 16: In any case, best practice when ser
Page 17 and 18: In this instance then you will need
Page 19 and 20: When the history of [the debtor] to
Page 21 and 22: The question whether the debt was s
Page 23 and 24: Where this Act confers power to ext
Page 25 and 26: The Court in David Grant decided th
Page 27 and 28: The applicants lodged an applicatio
Page 29 and 30: Abuse of Process and Failure to Com
Page 31 and 32: So, while waiting for the sender or
Page 33 and 34: Reducing Risk of Statutory Demand Q
Page 35 and 36: How can I get money owed to me? Aft
Page 37 and 38: However, you can also serve a statu
Page 39 and 40: Description of the debt Amount of t
Page 41: person before whom deponent swears

Statutory Demand Law in Australia

Create successful ePaper yourself

Delete template?

Save as template?