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11 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Step 1 of liquidation process |
Company search through the companies office - to confirm, company name, registered office of company and date of incorporation |
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What is Step 2 of the liquidation process? |
Establishing the inability to pay - through the statutory demand |
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Two purposes of a statutory demand |
- a formal demand threatening to put a debtor company into liquidation - grounds for the court to put a debtor company into liquidation |
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Requirements for a statutory declaration |
- be in respect of a claim for more than $1,000 - be in writing - be served on the company - give the company 15 working days to pay debt, enter a compromise with creditor or give charge over property to the reasonable satisfaction of the creditor Best practice: stat demand sets out full details of debt and place for payment and is signed by creditor or on behalf of creditor |
X4 X3 best practice |
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Who issues a statutory demand? |
A lawyer acting on behalf of the creditor |
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What information is required to draft a statutory demand? |
- amount incurred - date incurred - interest (if any) incurred from date demand served - name and registered office of debtor company - name and description of creditor |
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What is the process for serving a statutory demand |
- prepare the statutory demand letter and create two copies - keep one for the file - keep the original to file on the debtor - arrange for service (by agent) (agent may have to provide evidence e.g affidavit of service) - record date and time of service - record15 working days from service to note for non-compliance of statutory demand |
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Can a statutory demand be set aside? Why? |
Yes, a court can set aside a statutory demand if there is a substantial dispute over debt owing, debtor company has a count claim or demand ought to be set aside on other grounds |
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What is the procedure for setting aside, what must be filed? |
- application for an order setting aside statutory declaration - affidavit in support of the grounds - evidence of companies financial position |
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What must you do before commencing liquidation proceedings |
Establish exisiting liquidation proceedings. If there are exisiting proceedings you will file an appearance in support of the exisiting proceedings. |
Step 3 |
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What is step 4 of the liquidation process and what must be filed? Where must the statement of claim be filed (legislation) |
This is the beginning of the liquidation process in the High Court - a statement of claim must be filed (HCR 31.3) HCR 31.4 - filing SOC |
Legislation |
