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ARTICLE · 20 APRIL 2016

Statutory demands & obligations of legal practitioners

Carroll & O'Dea
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It is crucial to advise your client to respond promptly to a statutory demand, to avoid the presumption of insolvency.

AustraliaLitigation, Mediation & Arbitration
Adrian O'Dea
Adrian O'Dea
Zara Keith (Formerly With Carroll & O'Dea)
Zara Keith (Formerly With Carroll & O'Dea)
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What is a statutory demand?

In essence, a statutory demand is a means by which a creditor can call upon a debtor company to make good a liquidated claim, without allowing the debtor company to create delay by putting on a defence where there is, in reality, no genuine dispute surrounding the claim.

Pursuant to s9 of the Corporations Act 2001 (Cth) ("Corporations Act"), a 'statutory demand' is either a document that is or purports to be a demand served under s459E or such a document as varied by Court order under ss459H(4).

Part 5.4 of the Corporations Act provides the requirements for winding up of insolvent companies, issuing statutory demands, applications to set aside statutory demands and applications for orders to wind up a company in insolvency.

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