A Statutory Demand is a demand upon a company under the provisions of the Corporations Act. Failure to act and negotiate payment to have the Demand withdrawn or to make an application in the Supreme Court of New South Wales, before the expiration of the 21 day period, is deemed to be sufficient grounds to have a company wound up.
An application to set aside a Statutory Demand is made in the Supreme Court of New South Wales and must be accompanied by an affidavit setting out the grounds on which you rely to have the Statutory Demand set aside (deemed invalid). A Statutory Demand must be for a definite amount of money over which there is no dispute, properly described and the debtor (person owing the money) is properly described. If there is any error in the Statutory Demand or it is ambiguous, then there are grounds to have it set aside (made null and void).
Even when the Statutory Demand is drafted correctly, it has been our experience that most Creditors are willing to negotiate the debt. Our statutory demand lawyers will work with you to negotiate and arrange to pay the debt with a satisfactory regime. It is here that our team’s extensive business experience and negotiation expertise works to obtain a satisfactory outcome to have the Statutory Demand withdrawn.
Statutory Demand FAQs: