Issued Under section 459E of the Corporations Act 2001 (Cth) a statutory demand is a formal demand for payment of a debt to be paid within a 21 day time limit.
It is a minimum claim amount of $2000 and if not paid within 21 of a statutory demand being sent , the failure to respond can form the basis of an application to the Court to wind up the corporation. The consequences of ignoring a statutory demand can be significant.
There is a presumption of insolvency if there is a failure to comply with the statutory demand.
The correct form must be used and the debt must be verified by an affidavit.
The grounds on which a statutory demand can be set aside are as follows:
There is a genuine dispute concerning the existence of the debt,
There is a defect in the demand
There is a valid reason why the demand is to be set aside
The company has an offsetting claim
If you need assistance with any debt recovery matter please contact Longton Legal.