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Statutory Demand Template

The Australian Treasury describes a statutory demand as… A notice made by a creditor under the Corporations Act on a debtor company. As the name suggests, a statutory demand demands the payment of a debt.

One is a demand pursuant to a judgement debt, the other is a demand for a single debt. The precedents come with commentary covering:

  • Statutory Demands – overview of practice and procedure
  • What is a statutory demand?
  • Requirements of a Statutory Demand
  • Formal requirements of a Statutory Demand

The precedents set out the formal requirements of a Statutory Demand in basic form.

This must be accompanied by affidavit, pursuant to section 495E (3) of the Corporations Act 2001, unless it is a judgement debt.  It is good practice to accompany all Statutory Demands by affidavit. An Affidavit is included in this precedent set.

 

 

Debt Recovery Statutory Demand Template

This information is not legal advice given by Precedents Online or its Authors

Corporations ACT 2001

Who does the Corporations Act 2001 apply to?
The Corporations Act is the principal legislation regulating companies in Australia. It regulates matters such as the formation and operation of companies (in conjunction with a constitution that may be adopted by a company), duties of officers, takeovers and fundraising.

CORPORATIONS ACT 2001 – SECT 459E Creditor may serve statutory demand on company

CORPORATIONS ACT 2001 – SECT 459E

Creditor may serve statutory demand on company

             (1)  A person may serve on a company a demand relating to:

                     (a)  a single debt that the company owes to the person, that is due and payable and whose amount is at least the statutory minimum; or

                     (b)  2 or more debts that the company owes to the person, that are due and payable and whose amounts total at least the statutory minimum.

             (2)  The demand:

                     (a)  if it relates to a single debt–must specify the debt and its amount; and

                     (b)  if it relates to 2 or more debts–must specify the total of the amounts of the debts; and

                     (c)  must require the company to pay the amount of the debt, or the total of the amounts of the debts, or to secure or compound for that amount or total to the creditor’s reasonable satisfaction, within 21 days after the demand is served on the company; and

                     (d)  must be in writing; and

                     (e)  must be in the prescribed form (if any); and

                      (f)  must be signed by or on behalf of the creditor.

             (3)  Unless the debt, or each of the debts, is a judgment debt, the demand must be accompanied by an affidavit that:

                     (a)  verifies that the debt, or the total of the amounts of the debts, is due and payable by the company; and

                     (b)  complies with the rules.

             (4)  A person may make a demand under this section relating to a debt even if the debt is owed to the person as assignee.

             (5)  A demand under this section may relate to a liability under any of the following provisions of the Income Tax Assessment Act 1936 :

                    (aa)  former section 220AAE, 220AAM or 220AAR;

                     (a)  former section 221F (except subsection 221F(12)), former section 221G (except subsection 221G(4A)) or former section 221P;

                     (b)  former subsection 221YHDC(2);

                     (c)  former subsection 221YHZD(1) or (1A);

                     (d)  former subsection 221YN(1);

                     (e)  section 222AHA;

and any of the provisions of Subdivision 16-B in Schedule 1 to the Taxation Administration Act 1953 , even if the liability arose before 1 January 1991.

             (6)  Subsection (5) is to avoid doubt and is not intended to limit the generality of a reference in this Act to a debt.

 

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