Can you serve a statutory demand on a company?
Can you serve a statutory demand on a company?
A statutory demand can be served on a company by leaving it at the company’s registered office, as confirmed at section 123 (1)(a) Insolvency Act 1986. In either example evidence of service is important.
How do you respond to a creditors statutory demand?
How to Respond to a Statutory Demand
- be in writing;
- specify the total amount of the debt(s);
- require the company to pay the debt(s) within 21 days after service;
- signed by or on behalf of the creditor; and.
- be in the prescribed form (found in Schedule 2 of the Corporations Regulations 2001).
Can you serve a copy of a statutory demand?
A creditor can serve a statutory demand by leaving it at the registered office of the debtor company, sending it by post to that office or delivering a copy of the demand personally to a director of the company who resides in Australia.
What do you do when you get a statutory demand?
Your options if you receive a statutory demand
- Apply to have the statutory demand cancelled.
- Pay the debt in full.
- Offer to pay by instalments.
- Ask your creditor to write off the debt.
- Offer security on your property against the debt.
- Set up an individual voluntary arrangement.
- Reduce the amount you owe to below £5,000.
Who can issue a statutory demand?
You can make a statutory demand to ask for payment of a debt from an individual or company. Anyone who’s owed money (the ‘creditor’) can make a statutory demand. You do not need a lawyer. If the debt’s over 6 years old, you cannot usually make a statutory demand.
What happens if a statutory demand is set aside?
If the application to set aside the statutory demand is rejected by the Court, that is,”the Court is satisfied that there is a debt due by the company to the creditor that is not the subject of a substantial dispute, or is not subject to a counterclaim, set-off, or cross-demand, the Court may (a) order the company to …
How to draft a statutory demand – form 509h?
When you draft a statutory demand – form 509H, you must then clearly identify the amount of the debt. Where you see an asterisk in the Form 509H then you are to keep one and delete the other. The statutory demand form actually says “* Omit if inapplicable”. The debt amount can relate to one debt, or a number of debts.
Can a creditor serve a statutory demand on a company?
A creditor to whom a company owes at least $2000 may serve a statutory demand on the company. The statutory demand must: be accompanied by an affidavit verifying that the debt is due and payable. Strict compliance with Form 509H is not necessary: the Act gives legal effect to any document “purporting” to be a statutory demand.
What happens if creditors fail to comply with form 509h?
Despite considerable litigation on what sort of defects will cause substantial injustice, no definitive principles have emerged. Creditors should, therefore, stick to Form 509H. Failure to comply with Form 509H is not the only potential pitfall for creditors. Creditors continually make mistakes in three areas: inadequate affidavit.
When to keep or delete a form 509h?
Where you see an asterisk in the Form 509H then you are to keep one and delete the other. The statutory demand form actually says “* Omit if inapplicable”. The debt amount can relate to one debt, or a number of debts. If your demand relates to one debt, keep the first and delete the second.