ARTICLE · 11 APRIL 2007

Statutory Demands: Not Something To Ignore

Swaab Attorneys

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In our experience, whilst most directors know the nature of a Statutory Demand (that is, a demand for a payment), the consequences of failing to deal with a Statutory Demand expediently are not always understood.

AustraliaInsolvency/Bankruptcy/Re-Structuring

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In our experience, whilst most directors know the nature of a Statutory Demand (that is, a demand for a payment), the consequences of failing to deal with a Statutory Demand expediently are not always understood.

What is a "Statutory Demand"?

A Creditor's Statutory Demand for Payment of Debt or "statutory demand", is a document demanding payment of a debt, issued to a company, pursuant to the Corporations Act 2001 (Commonwealth) ("the Act").

The purpose of statutory demand is to provide a scheme for the quick resolution of the issue of a company's solvency without incurring the delay normally associated with disputes about debts (unless those disputes are raised promptly).

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