So you want to serve a statutory demand. What does it mean? What are the consequences? What must the debtor do and by when? These are all questions that need to be asked and answered within a tight space of time.
A statutory demand is a demand made pursuant to s 289 of the Companies Act 1993. If one is received, the defendant company is required to pay the specified sum, enter into a compromise or give a charge over property to secure payment of the debt to the reasonable satisfaction of the creditor within 15 working days of the date of service, or such longer period as the Court may order.
Issuing statutory demands are a key part of our collection strategy, as such, it is important for creditors to understand the process.
For a full analysis of the basics and process, we refer you to the article by Norling Law: https://www.norlinglaw.co.nz/blog/statutory-demands-the-basics.