What is a statutory demand Hong Kong?
The petition to wind-up the company is typically preceded by a demand for payment commonly known as a “statutory demand”. This is a demand for payment which complies with the requirements prescribed in the Companies (Winding-up and Miscellaneous Provisions) Ordinance (“CWUMPO”).
What is a statutory demand NSW?
2.1 A Statutory Demand is a creditor’s formal, written request requiring a company to pay a debt within 21 days of service. 2.2 The requirements for making a Statutory Demand are set out in s459E of the Corporations Act.
What is a statutory demand NZ?
Statutory demands are issued by creditors against debtors who owe them money and have not paid their debts. The statutory demand process is aimed at giving creditors an effective and efficient way to seek their unpaid debts.
What do you do when you get a statutory demand?
Your options if you receive a statutory demand
- Apply to have the statutory demand cancelled.
- Pay the debt in full.
- Offer to pay by instalments.
- Ask your creditor to write off the debt.
- Offer security on your property against the debt.
- Set up an individual voluntary arrangement.
- Reduce the amount you owe to below £5,000.
Does statutory demand expire?
If you are a creditor who has served a statutory demand and no action was taken by the debtor company, the presumption of insolvency lasts for 3 months after the demand is served. Once these 3 months expire, creditors can no longer rely on the statutory demand as proving insolvency.
What happens after a statutory demand?
What Happens After Statutory Demand? When the statutory demand has been served the creditor will be entitled to petition for a bankruptcy order against an individual, or for a winding up petition against a company after 21 days.
Can a statutory demand be served by email?
More commonly, demands are served by email to an address known to be regularly used by the debtor. It is helpful in these cases to also send a copy by post. Once acknowledged, the debtor is unlikely to have an argument that the demand was not received.
What happens after a statutory demand is served?
Who can send a statutory demand?
You can make a statutory demand to ask for payment of a debt from an individual or company. Anyone who’s owed money (the ‘creditor’) can make a statutory demand. You do not need a lawyer. If the debt’s over 6 years old, you cannot usually make a statutory demand.
What happens if you ignore a statutory demand?
An individual who ignores a Statutory Demand, either by not paying the debt or making a mutually acceptable arrangement with the creditor, is at risk of being ordered bankrupt. Bankruptcy means that all of your assets will belong to a Trustee in Bankruptcy who will sell them and distribute payments to your creditors.
Can you withdraw a statutory demand?
There is no formal procedure for withdrawing a statutory demand. In practice, the Creditor may simply confirm in writing that the statutory demand is withdrawn. The Creditor may also give an undertaking not to present a winding petition on the basis of the demand in the case of a company.
Can I serve a statutory demand by email?
No. A statutory demand must be served in person, either by handing the written notice to the individual it is addressed to or by leaving it at the business’s registered office or main place of business, or with the company director or secretary.