#statutory demand process

How to Draft a Statutory Demand – Form 509H

Do you need to know how to draft a statutory demand – Form 509H?

A statutory demand is a demand for payment pursuant to section 459E of the Corporations Act 2001 (Cth) (“the Corporations Act”).

If you are a creditor of a debtor company, and the company is unable to pay its debts when they become due and payable, then you can serve the company with a creditor’s statutory demand for payment,…

How to Comply with a Statutory Demand

You must comply with a statutory demand if you are not going to attempt to set the statutory demand aside, or ask the issuer to withdraw the demand.

To comply with a statutory demand is to either:

To pay to the creditor the amount of the debt or total of the amounts of the debts; or

To secure or compound for the amount of the debt or total of the amounts of the debts, to the creditor’s reasonable…

Statutory demands are creatures of the Corporations Act 2001 (Cth) (“Corporations Act”). The Courts have interpreted compliance with the 21 day time limit very strictly. Failure to comply with the 21 day period for compliance for a statutory demand can have very serious consequences for the debtor company. Failure to apply to set aside the statutory demand and serve the documents can mean that…