Statutory demand NZ — one of the most powerful debt recovery tools available to NZ businesses. When a company owes you money and won't pay, a properly drafted demand gives them 15 working days to pay or face liquidation proceedings. Fixed fee, done for you.
Includes your free consultation, statutory demand preparation, formal service guidance and follow-up support. No hourly billing and no surprise invoices.
A Statutory Demand is one of the most effective debt recovery tools available to NZ businesses — but only when it is correctly drafted and properly served. An error in the demand itself can make it void, hand the debtor a defence and cost you more than you would have lost by waiting.
What's included in your Statutory Demand service — $495 + GST
Everything below is covered under one fixed fee. No extras, no hourly billing, no hidden costs.
A Statutory Demand can only be used in specific circumstances. Before drafting anything we confirm your debt qualifies — saving you money and protecting you from a defective demand that could backfire.
The form and content of a Statutory Demand is prescribed by law. We ensure every requirement is met so the demand cannot be set aside on a technicality when you need it to work.
A Statutory Demand creates a legal presumption of insolvency if not responded to within 15 working days. This is powerful commercial pressure — most debtors pay rather than face liquidation proceedings.
Debt recovery is time-sensitive. The longer an invoice sits unpaid, the harder recovery becomes. We work to next business day delivery so you can act quickly.
$495 + GST covers the full service. Court action for unpaid debts can cost thousands. A properly prepared Statutory Demand is one of the most cost-effective tools available.
Whether the debtor pays, disputes or ignores the demand — we explain your options at every stage so you always know where you stand and what to do next.
Chasing unpaid invoices informally rarely works. The longer a debt sits unpaid, the harder it becomes to recover — and the more likely the debtor is to become insolvent before you can enforce. A Statutory Demand changes the dynamic immediately.
Fast, simple and done for you — from first call to formally served demand in as little as one business day.
We assess your debt, confirm the debtor is a company, verify the debt is undisputed and confirm a Statutory Demand is the right tool for your situation before proceeding.
Your price is confirmed at $495 + GST — the complete service. You can pay online immediately or we invoice after the consultation. No hourly clock, no surprises.
We personally prepare your Statutory Demand in the correct prescribed form under the Companies Act 1993. Ready the next business day — faster for urgent situations.
We guide you through exactly how to serve the demand on the company. The 15 working day clock starts from service. We remain available as the deadline approaches and advise on next steps.
Ready to recover what you are owed?
Book a free consultation or buy directly online — $495 + GST.
A Statutory Demand is a powerful tool — but it can only be used in specific circumstances. Understanding the rules before issuing one is critical. We assess eligibility as part of every engagement.
Margate Group is a business consultancy, not a law firm. We prepare Statutory Demands and provide guidance on service. We cannot represent clients in court or liquidation proceedings. If the demand is not complied with and you proceed to liquidation, you will need to engage a solicitor.
Real outcomes for real NZ business owners recovering what they are owed.
I run a small freelance business and needed proper Terms of Trade after a client didn't pay on time. Margate Group made it easy, set me up with clear terms and helped recover the overdue invoice. It took a weight off my shoulders and I'd recommend them to any freelancer wanting things sorted without the big price tag.
As a SME owner, getting the right advice isn't always easy. Margate strike the perfect balance of professional, direct and genuinely caring. From contract negotiations to tricky customer non-payment disputes, they've consistently helped me achieve the right outcome. Highly recommend.
Very thorough, patient with our requirements, and 100% professional. All work was delivered on time and produced the best possible results for us. Highly recommended.
A Statutory Demand is a serious legal step with strict rules. Understanding how it works — and the risks of getting it wrong — protects you and maximises your chance of recovery.
A Statutory Demand is a formal legal notice served on a company under section 289 of the Companies Act 1993. It demands payment of a debt within 15 working days. If the company fails to pay the debt, compound a satisfactory arrangement or successfully apply to set the demand aside, it is presumed to be insolvent under the Act.
That presumption of insolvency then allows the creditor to apply to the High Court for an order to liquidate the company. The threat of liquidation is why Statutory Demands are so effective — most companies will pay rather than face the reputational and commercial consequences of winding up proceedings.
A Statutory Demand is what is sometimes called a "self-help" remedy. Unlike a court judgment, it does not require a court order before it is issued. The creditor prepares and serves the demand directly on the debtor company — no court application is required at this stage. This makes it significantly faster and cheaper than standard civil debt recovery through the courts.
A valid Statutory Demand must meet strict requirements under the Companies Act 1993. The debt must be owed by a company registered under the Companies Act — it cannot be served on individuals, sole traders or partnerships. A separate legal regime applies to those debtors.
The debt must be at least $1,000, currently due and payable, and must not be genuinely disputed. Serving a demand for a disputed debt is a misuse of the process and the debtor can apply to the court to have it set aside — potentially with a costs award against you.
The demand itself must be in the prescribed form under the Companies Act Regulations 1994. It must correctly identify the creditor, the debtor company, the amount of the debt and the basis on which it is owed. It must be served correctly — generally by personal service on a director or the company's registered office.
Any defect in the form, content or service of the demand can give the debtor grounds to apply to set it aside. This is why professional preparation matters — an incorrectly drafted demand that is set aside has warned the debtor, given them time to restructure and may have cost you more than the original debt.
Once the 15 working day period expires, three things can have happened. First, and most commonly, the debtor pays the debt in full or reaches a settlement — in which case no further action is needed and the demand has served its purpose.
Second, the debtor may have applied to the High Court within the 15 days to set aside the demand. This is only available where the debtor has a genuine dispute about the debt, a counterclaim that offsets the amount owed, or where the demand is defective. The court will dismiss spurious applications but a genuine dispute will succeed.
Third, if the debtor has done nothing — has not paid and has not applied to set the demand aside — the presumption of insolvency arises. The creditor may then make an application to the High Court for an order to wind up the company. At this stage you will need to engage a solicitor as court representation is required. We can guide you on next steps and refer you to appropriate legal counsel if needed.
Yes. A debtor company can apply to the High Court within 15 working days of service to set the demand aside. The court will grant the application if the debtor can show that the debt is genuinely in dispute, that there is a counterclaim or cross-demand that equals or exceeds the amount of the demand, or that the demand is defective in some other way.
Courts have consistently emphasised that the Statutory Demand process is not intended to be used as a pressure tool to recover disputed debts. Using a demand for a debt that is genuinely contested is an abuse of process and can result in the demand being set aside with costs awarded against the creditor.
This is why the initial eligibility assessment is critical. If there is any real prospect that the debtor will dispute the debt, an alternative approach — such as a demand letter, negotiation or court proceedings — may be more appropriate. We assess this before drafting anything and advise honestly if a Statutory Demand is not the right tool for your situation.
A Statutory Demand does not require a court judgment to issue. It is a pre-litigation step that creates pressure through the threat of insolvency proceedings. It is faster, cheaper and often more effective than court action for undisputed commercial debts. However it can only be used against companies, and only for undisputed debts.
A judgment debt is obtained after court proceedings — either by obtaining a default judgment where the debtor does not defend the claim, or after a hearing. A judgment can be enforced against individuals and companies alike, through asset seizure, charging orders over property or examination summons. Enforcement of a judgment is separate from obtaining one.
For undisputed company debts, a Statutory Demand is often the first and most effective step — triggering payment before court proceedings are necessary. For disputed debts, or debts owed by individuals, court proceedings are the appropriate route. We advise on which approach suits your situation during the free consultation.
Service of a Statutory Demand is governed by the Companies Act 1993. The demand must be served on the company — not just sent by email. The primary methods are personal service on a director of the company, service at the company's registered office, or leaving the document with a person who appears to be in charge of the registered office.
The 15 working day clock does not start running until the demand is properly served. Incorrectly served demands — for example, simply emailing them — may not be legally effective and could be challenged. Where service is disputed this can affect whether the presumption of insolvency arises.
We provide detailed guidance on how to serve your specific demand, including the company's registered office address from the Companies Register and the best approach for your circumstances. Keeping proof of service — ideally a signed acknowledgement or statutory declaration — is strongly recommended.
Ready to recover your debt?
We prepare Statutory Demands that comply with every requirement of the Companies Act 1993 — and advise on eligibility before drafting anything.
Start with a free 30-minute consultation — or buy directly online for $495 + GST.
Book Free Consultation Buy Now — $495 + GSTHonest answers about our Statutory Demand service and how the process works.
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Ask Us AnythingA Statutory Demand is a formal legal notice served on a company under section 289 of the Companies Act 1993, demanding payment of a debt within 15 working days. If the company fails to pay or successfully challenge the demand, it is presumed insolvent — allowing you to apply to liquidate it.
No. Statutory Demands under the Companies Act 1993 can only be served on companies. If your debtor is an individual, sole trader or partnership, different debt recovery tools apply. We advise on alternatives during your free consultation.
Our Statutory Demand service is a fixed fee of $495 + GST. This covers your free consultation, eligibility assessment, demand preparation, formal service guidance and follow-up support. No hourly billing and no hidden costs.
If the company has not paid or applied to set the demand aside, the presumption of insolvency arises. You may then apply to the High Court for a liquidation order. Court representation is required at this stage — we guide you on next steps and can refer you to appropriate legal counsel if needed.
Yes. The debtor company can apply to the High Court within 15 working days to set the demand aside. This requires showing a genuine dispute about the debt, a counterclaim that offsets the amount or a defect in the demand. A correctly prepared demand for an undisputed debt is very difficult to set aside — which is why correct preparation matters.
Under the Companies Act 1993, the debt must be at least $1,000. Most commercial debts will exceed this threshold. The debt must also be currently due and payable — contingent or future debts do not qualify.
No. Margate Group is a business consultancy, not a law firm. We prepare Statutory Demands and provide guidance on service and next steps. We cannot represent clients in court or liquidation proceedings. If the demand is not complied with and you proceed to liquidation you will need to engage a solicitor.
Yes. We work with clients nationwide across New Zealand. All our services are available remotely so your location is no barrier. We regularly work with clients in Wellington, Christchurch, Hamilton, Tauranga and rural regions across New Zealand.
Don't let unpaid company debt erode your business. A properly prepared Statutory Demand is the fastest and most cost-effective way to pressure a company debtor into paying — fixed fee, done for you, next business day.
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Statutory Demand Preparation — $495 + GST
Book a free consultation to discuss your debt and eligibility, or buy directly online and we will follow up to get your demand prepared.
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We are a business consultancy, not a law firm. We cannot represent clients in court proceedings.
