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Incorporating Jeffrey Choy Legal

Statutory Demand Solicitors & Lawyers Sydney CBD

Statutory Demand

We are experts at dealing with Statutory Demands

Our specialist statutory demand lawyers at JCL Legal, based in Sydney CBD, have the expertise and experience to help you, if you have been served with a Statutory Demand. You must act urgently you cannot wait; you have to act within 21 days of the service of the Demand. We can get you out of trouble and save your company. In many of the cases we deal with, the Statutory Demand is withdrawn before the matter goes to court.

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 Failure to act and negotiate payment to have the Demand withdrawn or to make an application in the Supreme Court of New South Wales, before the expiration of the 21day period, is deemed to be sufficient grounds to have a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business experience and negotiation expertise works to obtain a satisfactory outcome to have the Statutory Demand withdrawn.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 FAQ's

What is a Statutory Demand?

  • A Statutory Demand is a demand for payment of a debt owed by a company in accordance with the Corporations Act.

What is the statutory minimum for a Statutory Demand?

  • The statutory minimum is $2,000.00.

What are the other requirements?

  • The debt is due and payable; and
  • There is no dispute regarding the debt or debts.

What to do when you receive a Statutory Demand?

  • A company has 21 days to either pay the outstanding debt, have the issuer to withdraw the Statutory Demand or file and serve the issuer with an Application to Set Aside the Statutory Demand.

What is insolvency?

  • If the Statutory Demand has not been withdrawn or an Application is not filed and served on or before the 21 days after service the company is deemed to be insolvent. A company or person is insolvent when they cannot pay their debts when they become due and payable.

What is a petition to wind up a company?

  • If the company has not had the Statutory Demand withdrawn or filed and served upon the issuer and application to set aside the Statutory Demand the company is deemed to be insolvent and the issuer then has a right to make a Winding Up application or petition to have the company wound up and its assets sold for the purposes of paying the debt.

Does the presumption of insolvency lapse?

  • The presumption of insolvency is only valid for 3 months from 21 days after the date of service, after that date the presumption lapses or becomes stale and no longer applies. Therefore a winding up application must be made prior to that date.

What is the process of a Statutory Demand?

A Statutory Demand is a precise technical document and we have had much success in having Statutory Demands set aside due to drafting errors or on the basis of there being a dispute. Should you require any advice or wish to serve a Statutory Demand or contest one, our firm has the necessary experience and knowledge to assist.

It is important that you act in a timely manner with any statutory demand. Ring our Sydney CBD office on +61 (0) 2 8215 1588 or our after hours mobile number +61 (0) 419 233 670 and we will respond within hours.

Speak Directly with a Statutory Demand Lawyer Today

JCL Legal (incorporating Jeffrey Choy Legal)

Sydney Office: +61 (0) 2 8215 1588

Mobile: +61 (0) 419 233 670

Email: info@jcllegal.com.au

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Address:
Level 8
65 York Street
Sydney NSW 2000