Legal Project Management Plan & Checklist
Creditor's plan for an Australian statutory demand under s 459E Corporations Act and winding up a company that fails to comply.
What must a statutory demand contain?: Under s 459E of the Corporations Act 2001 the demand must relate to one or more debts that are due and payable and total at least the statutory minimum, specify the debt and its amount, require the company to pay, secure or compound for it to the creditor's reasonable satisfaction within the statutory period after service, and be in writing, in the prescribed form and signed by or for the creditor. Unless every debt is a judgment debt it must be accompanied by an affidavit verifying the debt (s 459E(3)), which in the Federal Court must follow Form 7 (Federal Court (Corporations) Rules 2000 r 5.2). The statutory minimum and statutory period are defined in s 9, subject to the amounts prescribed by reg 5.4.01AAA of the Corporations Regulations 2001.
How long does a company have to respond?: The statutory period is 21 days unless a longer period is prescribed (s 9). A company that wants the demand set aside must, within that period, file its application and a supporting affidavit and serve copies on the creditor (s 459G). The Court may set the demand aside for a genuine dispute or an offsetting claim (s 459H), or for a defect causing substantial injustice or some other reason (s 459J), and may extend the period for compliance when it hears the application (s 459F(2)).
| Field | Token | Type | Required | Defined in |
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| Matter numberⓘ | ||||
When can the creditor apply to wind the company up?: A creditor may apply for a company to be wound up in insolvency (s 459P). The Court must presume insolvency if the company failed to comply with a statutory demand during or after the 3 months ending on the day the application is made (s 459C(2)), unless the contrary is proved. The application must set out particulars of service and non-compliance and attach the demand (s 459Q), and must be determined within 6 months unless the Court extends that time (s 459R).
What must be lodged with ASIC?: The applicant must lodge notice in the prescribed form that the application has been made and serve a copy of the application on the company within 14 days (s 465A(1)). An applicant other than ASIC must lodge notice of the filing not later than 10.30 am on the next business day, and notice of a winding up order, withdrawal or dismissal within 2 business days (s 470(1)). ASIC Form 519 is the form for these notifications.
Jurisdiction: This plan follows the Federal Court of Australia and the Federal Court (Corporations) Rules 2000. The winding up application is made by originating process in Form 2 (r 2.2).
The Process at a Glance: Verify the debt and prepare the demand with its supporting affidavit where needed. Serve the demand on the company and diarise the end of the statutory period and the 3-month window for the winding up application. Respond to any application to set the demand aside. If the demand is not complied with, file the Form 2 originating process with the affidavit in support and file the liquidator's consent, lodge Form 519 with ASIC by 10.30 am the next business day, serve the company and publish the notice of the application. Attend the hearing, then lodge Form 519 notice of the order and serve the entered order within the statutory times.
Key Legislation: Corporations Act 2001 (Cth) ss 9, 459C, 459E, 459F, 459G, 459H, 459J, 459P, 459Q, 459R, 465A and 470. Federal Court (Corporations) Rules 2000 rr 2.2, 5.2, 5.4, 5.5, 5.6 and 5.11. Corporations Regulations 2001 reg 5.4.01AAA. ASIC Form 519.
* Disclaimer: We're nobody's lawyer, because we aren't lawyers. You are, so you know better than to take legal advice from an app. We also aren't accountants or dog trainers - just digital spirit guides taking zero liability for any of this. This site exists to gather the collective knowledge of practitioners like you. Verify everything and submit your feedback on the Statutory Demand (Creditor) matter plan to improve the playbook. THIS IS NOT LEGAL ADVICE, it's a request for input.
This legal matter plan provides a structured workflow for Bankruptcy & Insolvency cases, outlining the standard RESTRUCTURING process. Utilize these tracking templates to manage your legal cases efficiently.
matter.matterNumber |
| text |
| Required |
inheritedmatter-core |
| Matter title | matter.title | text | - | inheritedmatter-core |
| Matter typeⓘ | matter.matterType | text | - | inheritedmatter-core |
| Matter status | matter.status | text | - | inheritedmatter-core |
| Client(1) | ||||
| Client name | matter.clientName | text | Required | inheritedmatter-core |
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