Statutory demand | Practical Law

Statutory demand | Practical Law

Statutory demand

Statutory demand

Practical Law ANZ Glossary w-020-8343 (Approx. 2 pages)

Glossary

Statutory demand

A formal written demand for payment of a debt within 15 working days of the date it is served on the debtor company. The debtor company must, within those 15 working days, do one of the following:
  • Pay the debt.
  • Enter into a compromise under Part 14 of the Companies Act 1993 (CA 1993).
  • Reach an agreement with the creditor about payment of the debt.
  • Give a charge over its property to secure payment of the debt.
If the debtor company does not do one of the above to the reasonable satisfaction of the creditor, the creditor can use this as grounds to apply to court for an order appointing a liquidator.
(Section 289, CA 1993.)