The 21-Day Wind Up Notice Timeline
A detailed breakdown of every critical day after receiving a wind up notice — what must happen, when it must happen, and what the consequences are if it doesn't.
The 21-Day Rule — No Exceptions
Under Section 459F of the Corporations Act 2001, a company must comply with a statutory demand within 21 days of service. Courts have consistently refused to extend this period. There are no exceptions and no discretion to extend the time.
Day-by-Day Timeline
Notice Served
The wind up notice / statutory demand is served on your company. The 21-day clock begins immediately. Service can be by hand delivery to your registered office, by post (deemed served 7 days after posting), or by email if your company has consented to electronic service.
Seek Immediate Professional Advice
Contact a qualified insolvency practitioner or restructuring advisor today. Do not wait. The earlier you engage professional help, the more options will be available to you.
Assess the Notice
Your advisor will review the notice for validity, assess whether the debt is genuinely owed, identify any defects in the notice, and begin gathering your financial information.
Evaluate All Options
Work with your advisor to evaluate every available option: payment, negotiation, court application to set aside, Small Business Restructuring, Voluntary Administration, or other alternatives. Each option has different implications.
Implement Your Strategy
Begin implementing your chosen strategy. If applying to court to set aside the demand, this application must be filed within 21 days. If entering SBR or VA, the appointment of a practitioner must occur within this period.
Confirm Progress
Confirm that your chosen strategy is on track. If negotiating with the creditor, ensure any agreement is documented in writing. If a court application has been filed, confirm the hearing date.
Final Checks
Verify that all necessary actions have been completed or are in progress. If any issues have arisen, contact your advisor immediately. Do not assume everything is resolved without written confirmation.
DEADLINE — The 21-Day Period Expires
This is the absolute deadline. After this date, the creditor can file a winding up application with the court. If you have not complied with the demand, set it aside, or entered a formal insolvency process, you are at serious risk.
Creditor Can Apply to Wind Up
The creditor may now file a winding up application. Once filed, this becomes a public record and the company's bank may freeze accounts. The company has very limited time to respond before a winding up order is made.
How Is "Service" Calculated?
The 21-day period begins from the date the notice is served on the company — not the date you personally become aware of it. Understanding when service occurs is critical:
Personal Service
Deemed served on the day it is handed to a director or officer at the registered office.
Registered Post
Deemed served 7 days after the date of posting, regardless of when it is actually received.
Ordinary Post
Deemed served 7 days after the date of posting.
Email / Electronic
Deemed served when sent, provided the company has consented to electronic service.
What Counts as "Compliance"?
A company "complies" with a statutory demand by doing one of the following within the 21-day period:
- ✓Paying the full amount of the debt claimed in the demand
- ✓Reaching a written agreement with the creditor to pay the debt (on terms acceptable to the creditor)
- ✓Successfully applying to court to set aside the demand (the application must be filed within 21 days)
- ✓Having the demand set aside by the court on grounds of a genuine dispute or offsetting claim
Note: Entering Voluntary Administration or Small Business Restructuring does not technically "comply" with the demand but creates a moratorium that prevents the creditor from proceeding with a winding up application while the process is underway.
Where Are You in the 21 Days?
Tell us when you received the notice and we'll help you understand exactly what options are still available to you.
Don't wait. Every day counts when dealing with a wind up notice.
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