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What is a Winding Up Application?

Court Process

A Winding Up Application is the legal “death knell” for a company.

The Process

  1. Statutory Demand Expired: The creditor served a demand, and 21 days passed without payment.
  2. Filing: The creditor files an Originating Process in the Federal Court or Supreme Court.
  3. Service: The application is served on the company’s registered office.
  4. Advertising: A notice is published on the ASIC Insolvency Notices website. (This freezes bank accounts).
  5. Hearing: A Registrar or Judge hears the matter. If the debt is proven and unpaid, the winding up order is made.

Can I Stop It?

Once the application is filed, it is very difficult to stop without paying the debt in full plus the creditor’s legal costs. You cannot dispute the debt at this stage if you ignored the Statutory Demand.1

We act for both creditors filing applications and companies defending them.

Facing Court? Contact us immediately. Call (07) 5532 8777.

  1. Corporations Act 2001 (Cth) s 459S (Restrictions on opposing application on grounds that could have been raised to set aside demand). ↩︎

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