Serving A Statutory Demand

A statutory demand is a demand relating to a debt that is served on a corporation in accordance with the requirements of ~ s 459E to the Corporations Legislation. The requirements for service are contained in the Corporations Act 2001 (Cth). 

Statutory Demand Service

The statutory demand (and affidavit in support) need to be served in accordance with section 109x of the Corporations Legislation which generally requires it to be sent by ordinary mail to the registered office of the debtor company. For matters that will proceed in state courts where the defendant is in another state there could be a requirement for service to be in accordance with the Service and Execution of Process Legislation. In the event that the statutory demand is returned to the sender then there can be an argument that any presumption as to service is displaced.

Prompt Action Is Needed Following Service

If you have been served with a statutory demand then prompt action is required. Usually, such a demand seeks payment of judgement debts in excess of $2000. Sometimes it is used to seek payment of an invoice because it has remained unpaid for sometime. For more information about issuing a statutory demand (or to set aside a statutory demand) contact our commercial litigation lawyers. 

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