Bankruptcy & Insolvency law

  • Direct Partner Access
  • Flexible Fees
  • Expert Advice
  • Melbourne-Based
  • Free Case Review
  • Fast Turnaround Times

Statutory Demands And The Winding Up Application

As advised your best course of action is to put in place the process for a winding up application for the debtor company as soon as possible if the amount owed to you is not paid.

In order to commence the winding up process you are first required to serve a Creditors’ Statutory Demand for Payment of Debt on the company. This is where in terms of Section 459C(2)(a) of the Corporations Act a company is presumed to be insolvent if it fails to comply with a Statutory Demand in terms of Section 459(F) of the Act. The procedure can only be utilised where the debtor is a company.

One of the main advantages of proceeding against a debtor in terms of a Statutory Demand is that it is not necessary for a creditor to have obtained a judgment against the debtor. There must however not be a genuine dispute in regard to the debt the subject matter of the Statutory Demand. Accordingly, a creditor who has a claim against a debtor is not obliged to obtain a judgment prior to making a Statutory Demand on the debtor.

The company then has 21 days to pay the outstanding amount or propose to pay the monies by way of an agreement to be reached with the creditor. In the event that the company fails to comply with the demand, you will then be entitled to apply to the Court to have the company wound up.

Please note that the costs of the application will be approximately $5,000.00. However, this is only if the matter proceeds without any opposition or other complicating issue.

We will prepare a Creditors Statutory Demand for Payment of Debt on your behalf in the amounts owing at this stage. An Affidavit in Support is also required to be signed by you.

A further and “in-depth” explanation of the Statutory Demand procedure is set out below.

Should you have any queries on getting an insolvency lawyer, please do not hesitate to Brett Samuel on 8320 2957 or Chris Wray on 8320 2951

Contact Us

For Your Free Phone Consultation


    News & Updates

    Our Happy Clients

    The Difference Is In Our Level Of Experience Defending The Most Difficult Cases & Our Rigorous Approach To Each Matter

    • I have known Brett Samuel and Rosendorff Lawyers for over 18 months. Brett is a commercially astute lawyer who provides excellent service, quick turnaround, responsive and useful advice and above all understands that clients expect results not just legal gobbledygook.

      I have referred Brett to a number of clients requiring commercial legal expertise and each has commented on his service and value for money approach to the law.

      I have also personally engaged Brett on a number of commercial and private matters and have found him to be an excellent ally. His advice is highlighted by providing options to the client but importantly, recommending a course of action that minimises risk and maximises outcomes. To date this approach has proven to be very valuable and what I, as a client, expects.

      I have no hesitation in recommending Brett for any commercial matter that you need advice on.

      Colin Linke, Director, Bentley Partners Accounting Services

    • I have used the services of Rosendorff Lawyers for a number of years now and have found them to be a great asset to my Business Sunburst Group. Their advice concerning contractual law and from time to time commercial litigation has been indispensable. Brett Samuel is always a pleasure to deal with as he is meticulous in his research prior to any legal action we might be considering. My association with Rosendorff Lawyers has helped my business to make the correct informeddecisions and in doing so has enabled me to save many thousands of dollars that otherwise uniformed decisions may have cost me.


    • Thanks for the excellent work you and your team at Rosendorff Lawyers did throughout the whole process of setting up Tarp Asset Management. The advice given was much appreciated. Coming in under budget was a welcome surprise too. I would not hesitate to recommend Rosendorff Lawyers to anyone searching for a reputable Melbourne-based financial services law firm. Your team went well above and beyond what was required to achieve success. I look forward to a long and rewarding professional relationship with Rosendorff Lawyers.

      Alex Tarpkos Tarp Asset Management

    Request a free phone consultation

    Tell us about your case and will get in touch with you shortly.

    Get In Touch With Us

    Call Now Make an Enquiry