Call our lawyers
now
or,
have our lawyers
call you
Winding Up and Dealing with Statutory Demands
Winding Up and Dealing with Statutory Demands
Has your company been served with a statutory demand for a debt allegedly owed? If so it is imperative that you act on it quickly. It is not uncommon for directors who receive a statutory demand to ignore it believing that if they just pay the outstanding money before it gets to court, or before the hearing of the winding up application, the matter will be resolved. This is not necessarily the case, and your company may be at risk of being wound up!
What happens if I am served with a Statutory Demand?
A statutory demand is issued by a creditor and served by posting it to the company’s registered business address. You then have a strict 21 days only to respond. Quite often a business may use their accountant’s address as the registered business address so there can be a delay in the director actually receiving the demand. You cannot extend the 21 days so it is imperative you act quickly. You therefore must file a response either stating that the demand is defective, or that there is a genuine dispute as to why the money as not been paid. The dispute could be over the work performed, or in regard to how much is actually owed.
What happens if I don’t make an application to set aside the Statutory Demand?
If you fail to make an application to set aside the demand within 21 days, your company is deemed to be insolvent. As a director, you are then at risk of being personally liable for trading while insolvent under the Corporations Act. The creditor can then issue your company with a Winding Up Application. This also results in the creditor lodging with ASIC a ‘Notice of Application to Wind Up’ your company. Once this occurs it is on your ASIC record for the public, and other creditors, to see.
What are the consequences if I have a Winding Up Application against my company?
If there is a Winding Up Application initiated against your company, your company will be wound up unless you successfully defend the application, or have it dismissed (often b y consent after negotiating with the other side). This can also result in adverse publicity for your company with the details listed on its ASIC record and notification in the local paper advertising the hearing date. Even if you pay the outstanding monies, once the application has been commenced any of your other creditors can apply to be substituted in the place of the applicant. This can in effect continue until all your creditors have been paid.
Laura Turner
Senior Associate
Laura Turner holds a Bachelor of Laws and Bachelor of Arts as well as a Graduate Diploma of Legal Practice. She is admitted to practice in the Supreme Court of Queensland. Laura began her legal experience through volunteering with the Student Legal Service offering free advice to students, and through a clerkship in the conveyancing team of a law firm in Hobart. She also volunteered at a Prisoner Legal Service, assisting inmates to obtain parole. Laura has a strong focus on family law, criminal and traffic law, although looks to broaden her knowledge into migration and civil law.
Affordable Lawyers
Our Go To Court Lawyers will assist you in all areas of law. We specialise in providing legal advice urgently – at the time when you need it most. If you need a lawyer right now, today, we can help you – no matter where you are in Australia.How It Works
1. You speak directly to a lawyer
When you call the Go To Court Legal Hotline, you will be connected directly to a lawyer, every time.
2. Get your legal situation assessed
We determine the best way forward in your legal matter, free of charge. If you want to go ahead and book a face-to-face appointment, we will connect you with a specialist in your local area.
3. We arrange everything as needed
If you want to go ahead and book a fact-to-face appointment, we will connect you with a specialist in your local area no matter where you are and even at very short notice.
Related Law Topics
Changes to Anti-Discrimination Laws (NT)
In 2022, the NT’s anti-discrimination laws were overhauled significantly for the first time in thirty years. The changes, which were introduced by the Labor government, included the expansion of the list of protected attributes and the introduction of a civil offence of ‘offensive behaviour’. The Country Liberal Party (CLP), which ....
Posted in:
Civil Law
Northern Territory
Proposed Hate Crimes Legislation (Cth)
In September 2024, the federal Attorney-General, Mark Dreyfus, introduced the Criminal Code Amendment (Hate Crimes) Bill 2024 into the federal parliament. The Bill seeks to strengthen commonwealth laws against hate crimes to preserve the value of tolerance in Australian society. This page outlines the proposed changes and some community responses ....
Posted in:
Australia
Should the Youth Wage be Abolished?
In Australia, the Age Discrimination Act 2004 prohibits discrimination against persons on the basis of their age in a range of areas of public life including in employment. However, there is an exception in respect of the payment of a lesser wage to workers who are under 21. There is ....
Posted in:
Australia
Proposal To Limit Social Media Use to Over-16s
In November 2024, the government introduced the Online Safety Amendment (Social Media Minimum Age) Bill into the federal parliament. The Bill seeks to amend the Online Safety Act 2021 by imposing a minimum age of 16 for the use of social media platforms such as Facebook and TikTok. This page ....
Posted in:
Australia
Gender Identity Discrimination Before Federal Court
This page summarises the issues the court will consider in this landmark case on gender identity discrimination.
Posted in:
Australia
Blog
Civil Law
Uncategorized
Residential Tenancies Act Amended (NT)
At the start of this year, some significant changes were made to the Northern Territory’s Residential Tenancies Act. The changes have been made in response to the tight rental market in the NT, which has been described as the worst in the country. The changes include a ban on rental ....
Posted in:
Civil Law
Northern Territory
Uncategorized
From the start of 2024, a range of reforms to the Therapeutic Good Act 1989 and the Customs (Prohibited Imports) Regulations are being introduced to further regulate and restrict the importation, manufacture and supply of e-cigarettes in Australia. The changes follow a series of reports on the harmful effects of ....
Posted in:
Australia
Uncategorized
Preventative Detention Laws Passed
On 6 December 2023, the federal government passed legislation that empowers courts to make orders for the preventative detention of non-citizens who are believed to pose a risk of serious future offending. The courts have also been empowered to make orders imposing very strict supervision conditions while a non-citizen continues ....
Posted in:
Australia
GTC to Partner With Leading UK Firm Taylor Rose
GTC Legal is delighted to announce its upcoming partnership with leading British firm Taylor Rose, which will be drawing on GTC’s local market knowledge and advanced client acquisition techniques to expand its practice into Australia. Taylor Rose will contribute its valuable IP to develop and enhance GTC’s existing business, providing ....
Posted in:
Australia
Uncategorized
Go To Court Lawyers Ranked Best Legal Service
The Australian website Product Review, which provides consumer information and experiences of products, services and businesses in Australia has ranked Go To Court Lawyers as Best Legal Service. Go To Court Lawyers is thrilled to receive this recognition from such a widely recognised site that is commonly used by Australians ....
Posted in:
Australia
Blog
Press Releases
Please note that this post was published on 9 June 2020. The information on this page is no longer accurate. The World Health Organisation declared Covid-19 a pandemic on the 11 March 2020. On the 15 March 2020 the Western Australian Minister for Emergency Services and the State Government declared a ....
Posted in:
Civil Law
Western Australia
Breaking a Lease for a COVID-19 Reason (Vic)
Please note that the legislation referred to on this page is no longer in force. On 24 April 2020 Victoria passed legislation temporarily amending the Residential Tenancies Act 1997 in response to the COVID-19 pandemic. The COVID-19 Omnibus (Emergency Measures) Act 2020 will be in force for six months. Among ....
Posted in:
Civil Law
Victoria