How to serve a statutory demand
In short
A statutory demand must be served on the company in a manner permitted by the Corporations Act — commonly by leaving it at, or posting it to, the company's registered office. Correct service starts the 21-day response period, so serving the demand properly is critical to its validity.
Service is not a formality — it fixes the date from which the 21-day period runs, and defective service can undermine the entire demand.
Accepted methods of service
A common and reliable method is to serve the demand on the company's registered office as shown on the ASIC register, by delivery or by post.
Why getting service right matters
If service is defective, the company may argue the demand was never validly served and the response period never started. Keep clear records of how and when the demand was served.
Do not use a statutory demand for a genuinely disputed debt. If the debtor disputes the debt on genuine grounds, or has an offsetting claim, a statutory demand can be set aside and cost orders may follow. If in doubt, seek advice before proceeding.
References
- Corporations Act 2001 (Cth) — incl. s 459E (statutory demand)
- Corporations Regulations 2001 — prescribed form and statutory minimum
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