21 days to act!
A company director who receives a statutory demand for payment
from a creditor and fails to act appropriately, within 21 days from
receiving it, can have grave consequences on the future of what
might be, a viable business. This is because the next step in the
process is for a creditor to file a winding up application. If this
is filed, the available options to resolve the circumstances become
limited.
At Worrells, professional advisors often ask us what options are
left for clients who receive a statutory demand. Our advice always
urges them to act before the demand's 21-day period
expires.
The reality is that, this hinges on whether the company is
solvent, its underlying business is viable, or whether receiving a
statutory demand indicates wider systemic financial problems the
company may be facing. Acting before the demand expires reduces the
likelihood of having to defend a winding up application or taking
remedial action to save a company
