ARTICLE · 14 MAY 2022

Do not ignore a Statutory Demand!

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What is a Statutory Demand? What do you do if you receive a Statutory Demand?

AustraliaLitigation, Mediation & Arbitration

Murray Thornhill

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Special Counsel, Blair Campbell, in our Dispute Resolution team outlines statutory demands and what to do if you receive a statutory demand.

Do not ignore a statutory demand! One would think that this would be self-evident, especially since the statutory demand document explicitly states on it:

A failure to respond to a statutory demand can have very serious consequences for a company. In particular, it may result in the company being placed in liquidation and control of the company passing to the liquidator of the company.

However, in recent months we have seen several examples of people who have failed to address a statutory demand and had to deal with the consequences. Some of this might be a hold-over from the COVID measures which raised the debt threshold and extended the period to respond to a statutory demand to six months.

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