What a Statutory Demand Is and How a Company Should Respond
A statutory demand is one of the most serious letters a company can receive. It is not an ordinary request for payment. It starts a short legal clock, and ignoring it can lead to the company being wound up. Every director should know what one looks like.
Statutory demands are made under the Corporations Act. The Federal Court of Australia describes one as a formal, written request requiring a company to pay a debt. This article covers demands served on companies. It explains the timing, the minimum amount and the options for responding.





