Statutory Demands: Tricks and Traps for Both Sides of the Fence (Paper)

Presenters:

Kevin Glover, Barrister, Shortland Chambers
Yvonne Wang, Barrister, Shortland Chambers

Synopsis:

The statutory demand process is widely used for collecting debts – but getting it wrong can be costly both in terms of money and time. Lawyers can be liable for issuing a demand, even when it is the client who signs the demand. The area is complicated by needing to take into account a number of different rules in the Companies Act and the High Court Rules, as well as unwritten rules which emerge from the case law.

These materials provide practical guidance for lawyers advising creditors and/or debtors involved with statutory demands, with a focus on the requirements for a demand, the consequences of errors, and the process for applying to set aside a demand.

These materials will help you:

• Identify the requirements associated with issuing a statutory demand, including professional obligations on lawyers.
• Appreciate the costs consequences of issuing a defective demand.
• Understand the obligations on a company receiving a demand, including options for challenging a demand and the consequences of failing to do so.

Intended audience:

All lawyers (general practitioners, commercial and civil litigation lawyers, and in-house counsel) who deal with statutory demands. Accountants, insolvency practitioners, Chief Financial Officers, debt collectors, credit controllers and company directors/shareholders may also benefit from attending.