Glossary
What is statutory demand?
A statutory demand is a formal notice under the Corporations Act requiring a company to pay a debt within 21 days.
If the company doesn't pay or apply to set it aside, it can be presumed insolvent, which can lead to a winding up application. It only applies to companies, not individuals.
Example
A supplier owed $8,000 by a Pty Ltd company could serve a statutory demand for the debt.
In Australia
The minimum debt is $4,000. Get advice first, because a demand used for a disputed debt can be set aside.
General information only, not legal or financial advice.