In NSW, the expression “winding up notice” is often used to describe a formal step taken by a creditor seeking to have a company wound up because it has not paid a debt. Strictly speaking, it may refer to different documents, so the exact wording matters.
A common example is a statutory demand under the Corporations Act 2001 (Cth).
The process generally works as follows:
- A creditor serves a statutory demand requiring a company to pay a qualifying debt.
- The company generally has 21 days after service to comply with the demand or apply to have it set aside.
- If the company fails to comply, it may be presumed insolvent.
- The creditor may then apply to the court for a winding-up order.
- If the court orders the company to be wound up, a liquidator takes control of its affairs, realises assets and distributes available funds to creditors according to the applicable priorities.
A winding-up notice does not, by itself, mean the company has already been wound up.
If you receive a statutory demand, the deadline is critical. An application to set it aside generally must be filed and served within the same 21-day period. Missing that deadline can have serious consequences, even where there is a genuine dispute about the debt.
If the debt is genuinely disputed, obtain urgent legal advice rather than ignoring the demand or assuming that an ordinary letter disputing it is sufficient.
If you or someone you know requires assistance in relation to a winding up notice contact the team at Meehans today on 4627 3333.
This article was published on 21/10/26 and the information is valid as at the date of publishing. This article is general in nature and is not and should not be considered or relied on as legal advice. Meehans Solicitors is not responsible in the event this information is relied upon by the reader in the absence of specific legal advice.
