With interest rates rising and the cost-of-living soaring, many of our corporate clients find themselves in situations where they have creditors chasing them for money. For some of our clients this results in creditors applying to the court to have their company wound up. If you or your accountant receives a Creditors Statutory Demand under Section 459G of the Corporations Act 2001, then you must act quick.
You must speak to a lawyer within 14 or 15 days of you receiving it. If you do not then you are at severe risk of your company being wound up in insolvency.
Winding up a company is where:
- the company ceases to continue business;
- any remaining assets are sold to pay creditors; and
- the remainder of any assets are distributed amongst partners or shareholders.
Are you finding yourself in a position where you are having to decide whether to negotiate your debts? Do you wish to contest a demand by a creditor or potentially have your company wound up? Is so then you should get advice from an experienced insolvency lawyer or business lawyer. You are welcome to contact Hendersons Legal for confidential legal advice and assistance on such matters.
This content is intended as commentary and should not be construed as legal advice.
For more information call David Henderson on 03 9629 2211.
