Under the Corporations Act the court has the power to order any company to wind itself up when it can no longer meet its debts when they fall due. The Court can order that a company begin wind up procedures if it is deemed insolvent.
If you are owed money you can issue a company with a statutory demand. If they do not respond then they may be proven to be insolvent.
The most common way of proving insolvency is for a company to be non-compliant with a statutory demand. These are orders made by the court and require certain obligations be met. If you have received a statutory demand you must act quickly as strict time frames apply.
At Gorval Lynch we assist businesses and individuals to issue statutory demands to recover payments and assist businesses facing wind up applications and help them understand their next steps. Call us today so we can discuss your matter in strict confidence and determine the best plan of action for your business.