Statutory Demand Lawyers in New Zealand
Verified NZ firms for statutory demand. Answer a few questions to find a Corporate & Compliance lawyer in minutes.
Understanding Statutory Demand and when to get legal help
The Corporate & Compliance practice area focuses on helping businesses follow the rules and laws that govern how they operate. One important part of this area is the Statutory Demand specialisation.
What is a Statutory Demand?
A statutory demand is a formal request made by a creditor to a company, asking for payment of a debt. In New Zealand, if a company owes money and does not pay it, the creditor can issue a statutory demand. This is a serious step and can lead to further legal action if the debt is not settled.
How Does It Work?
For example, imagine a small business that owes $10,000 to a supplier. If the business does not pay the supplier after several reminders, the supplier can send a statutory demand. This demand must be in writing and follow specific rules set out in the Companies Act 1993.
Why is it Important?
Understanding statutory demands is crucial for businesses. If a company receives a statutory demand and does not respond within 15 working days, it may be assumed that the company cannot pay its debts. This can lead to the company being put into liquidation, which means it may have to close down.
How We Can Help
Our Corporate & Compliance team can assist businesses in several ways:
- Advising on Debt Management: We help companies understand their rights and responsibilities when dealing with debts.
- Drafting Responses: If a company receives a statutory demand, we can help draft a response to protect their interests.
- Negotiating Settlements: We can assist in negotiating with creditors to find a solution that works for both parties.
In summary, the Corporate & Compliance practice area, particularly in statutory demand specialisation, is about ensuring businesses in New Zealand understand and comply with the laws regarding debts. We are here to help navigate these complex issues and protect your business.
How to choose the right Statutory Demand lawyer
- Look for a lawyer with experience in corporate law and statutory demands.
- Check their track record in resolving similar cases.
- Ensure they understand your specific business needs.
- Ask for client testimonials or references.
Verified Corporate & Compliance Law firms
These law firms are experienced in helping Kiwis navigate Statutory Demand in Corporate & Compliance matters.
Common questions about Statutory Demand:
What is a statutory demand?
A statutory demand is a formal request for payment from a creditor, often used to initiate insolvency proceedings.
When should I respond to a statutory demand?
You should respond within 15 working days to avoid potential legal action or insolvency proceedings.
What happens if I ignore a statutory demand?
Ignoring a statutory demand can lead to a creditor applying to wind up your company.
Can I dispute a statutory demand?
Yes, you can dispute a statutory demand if you believe it is invalid or if you have a genuine dispute.
How can a lawyer help with a statutory demand?
A lawyer can provide advice on your rights, help you respond, and represent you in any legal proceedings.