Statutory Demand (New Zealand)
STATUTORY DEMAND
Issued pursuant to section 289 of the Companies Act 1993
Date: [Demand Date]
PARTIES
CREDITOR:
Name: [Creditor Name]
NZBN: [Creditor NZBN]
Address: [Creditor Address]
Phone: [Creditor Phone]
Email: [Creditor Email]
DEBTOR COMPANY:
Registered name: [Debtor Name]
Company number: [Debtor Company Number]
Registered office: [Debtor Registered Address]
FORMAL DEMAND
To: [Debtor Name] (Company No. [Debtor Company Number]) of [Debtor Registered Address]
[Creditor Name] HEREBY DEMANDS that [Debtor Name] pay to [Creditor Name] the sum of NZD $[Debt Amount] being a debt that is due and payable as at [Demand Date].
PARTICULARS OF DEBT
Legal basis of debt: [Debt Basis]
Date debt became due: [Debt Due Date]
Total amount outstanding: NZD $[Debt Amount]
Particulars:
[Debt Description]
PAYMENT INSTRUCTIONS
Payment must be made within [Response Deadline Days] of service of this demand to the following account:
Account name: [Payment Account Name]
Account number: [Payment Bank Account]
Reference: [Payment Reference]
For queries regarding this demand, contact: [Contact Person], [Creditor Name] — Phone: [Creditor Phone] | Email: [Creditor Email]
CONSEQUENCES OF NON-COMPLIANCE
You are hereby notified that if [Debtor Name] fails within [Response Deadline Days] from the date of service of this demand to:
(a) pay the amount demanded; or
(b) compound with [Creditor Name] to [Creditor Name]'s satisfaction; or
(c) secure or compound for the amount to the satisfaction of [Creditor Name];
then [Creditor Name] is entitled to apply to [Applicable Court] for [Debtor Name] to be placed into liquidation on the ground of insolvency pursuant to sections 241 and 287 of the Companies Act 1993.
Failure to comply with this statutory demand is, pursuant to section 287(b) of the Companies Act 1993, a ground for the presumption that [Debtor Name] is unable to pay its debts as they fall due in the ordinary course of business.
RIGHT TO APPLY TO SET ASIDE
[Debtor Name] may apply to [Applicable Court] to have this statutory demand set aside under section 290 of the Companies Act 1993. Any such application must be made within [Response Deadline Days] of service of this demand. Grounds for setting aside include that the company has a substantial dispute as to whether the debt is owing or due, or that the company has an offsetting claim.
[Debtor Name] is strongly advised to seek independent legal advice from a New Zealand lawyer immediately upon receipt of this demand.
AUTHORISATION
Signed for and on behalf of [Creditor Name]:
Signature: _________________________
Name: [Contact Person]
Date: [Demand Date]
Authorised Signatory (Creditor)
________________
Signature
What Is a Statutory Demand (New Zealand)?
A Statutory Demand in New Zealand records the amount owed and the terms on which the debt will be acknowledged, settled, or recovered between the parties under the Companies Act 1993.
The statutory demand regime under the Companies Act 1993 is modelled on similar provisions in Australia and the United Kingdom. It serves a dual purpose: it provides an efficient and cost-effective debt recovery mechanism for creditors, and it acts as a trigger for identifying companies that are genuinely unable to pay their debts.
A valid statutory demand must meet specific requirements set out in section 289 and the High Court Rules. The demand must identify the creditor and debtor, specify the amount of the debt and its basis, state that the company has 15 working days to respond, and warn of the consequences of non-compliance. The demand must be properly served on the company's registered office or by another approved method.
The debt must be a liquidated sum — a fixed, ascertainable amount — that is due and payable at the time the demand is served. A statutory demand cannot be issued for a future debt, a contingent debt, or a debt that is genuinely in dispute. Courts will set aside demands issued in respect of genuinely disputed debts and may make adverse costs orders against creditors who misuse the process.
Receipt of a statutory demand is an extremely serious matter for any company. A company that fails to respond within 15 working days by paying, compounding, or applying to set aside the demand faces a presumption of insolvency under section 287(b) of the Companies Act 1993, giving the creditor the right to apply for liquidation under section 241. The consequences — including potential director liability for insolvent trading — make it essential that companies receiving a statutory demand seek urgent legal advice from a New Zealand lawyer or barrister.
The template helps creditors prepare a properly structured statutory demand that complies with the requirements of the Companies Act 1993 and the High Court Rules.
When Do You Need a Statutory Demand (New Zealand)?
A Statutory Demand under section 289 of the Companies Act 1993 is appropriate when:
- A registered New Zealand company owes you a debt of NZD $1,000 or more that is due and payable.
- The debt is a fixed, liquidated amount — not contingent or subject to genuine dispute.
- You have already made informal demands for payment (letters, emails, phone calls) without success.
- You want to use the threat of liquidation to prompt payment, or you intend to apply for the company's liquidation if it does not pay.
A statutory demand should not be used if:
- The debt is genuinely disputed — courts will set aside demands for disputed debts and may award costs against the creditor.
- The debtor is an individual rather than a registered company — a statutory demand under the Companies Act 1993 can only be served on a registered company.
- The amount is less than NZD $1,000.
- The debt is contingent on a future event.
Before issuing a statutory demand, consider whether a demand letter or negotiation would be sufficient, as a statutory demand triggers formal insolvency procedures. Legal advice from a New Zealand lawyer or barrister is recommended before issuing a statutory demand, particularly where the debt may be disputed.
What to Include in Your Statutory Demand (New Zealand)
A valid Statutory Demand under section 289 of the Companies Act 1993 must include:
1. Creditor details — Full legal name, NZBN (if applicable), address, phone, and email of the creditor issuing the demand.
2. Debtor company details — The registered name, company number (NZCO), and registered office address of the debtor company. Verify these details on the Companies Register at companiesoffice.govt.nz.
3. Amount of the debt — The total amount due and payable in NZD, clearly itemised by invoice number, date, and amount. The total must be NZD $1,000 or more.
4. Basis of the debt — The legal basis for the debt (e.g., invoices for goods supplied, loan repayment, damages for breach of contract under the CCLA 2017).
5. Date debt became due — The date on which the debt first fell due and payable.
6. Response period — A statement that the company has 15 working days from the date of service to pay the debt, compound with the creditor, or apply to the High Court to set the demand aside.
7. Consequences of non-compliance — A warning that failure to comply will entitle the creditor to apply to the High Court for liquidation under sections 241 and 287 of the Companies Act 1993.
8. Right to apply to set aside — A statement informing the company of its right to apply to the High Court under section 290 to set aside the demand.
9. Payment details — Bank account details and the reference to be used when making payment.
10. Authorised signature — The demand should be signed by the creditor or an authorised representative. The forms-legal.com Statutory Demand (New Zealand) provides a ready-to-use template that meets New Zealand legal requirements.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Statutory Demand (New Zealand) (New Zealand) [Legal document template]. Forms Legal. https://forms-legal.com/new-zealand/business/corporate/statutory-demand-new-zealand
"Statutory Demand (New Zealand) (New Zealand)." Forms Legal, 2026, https://forms-legal.com/new-zealand/business/corporate/statutory-demand-new-zealand.
@misc{formslegal-statutory-demand-new-zealand,
author = {{Forms Legal}},
title = {Statutory Demand (New Zealand) (New Zealand)},
year = {2026},
howpublished = {\url{https://forms-legal.com/new-zealand/business/corporate/statutory-demand-new-zealand}},
note = {Free legal document template. Based on Companies Act 1993}
}
Frequently Asked Questions
A statutory demand is a formal written demand issued under section 289 of the Companies Act 1993 requiring a registered New Zealand company to pay a debt of NZD $1,000 or more that is due and payable. Any creditor — whether an individual or another company — who is owed such a debt may issue a statutory demand. The debt must be a liquidated sum (a fixed, ascertainable amount) — contingent debts or debts that are genuinely disputed cannot validly be the subject of a statutory demand. A statutory demand is a powerful debt recovery tool because failure to comply within 15 working days is deemed evidence that the company is unable to pay its debts, allowing the creditor to apply to the High Court of New Zealand for the company to be placed into liquidation under sections 241 and 287 of the Companies Act 1993.
Under the Companies Act 1993 and the High Court Rules 2016, a statutory demand must be served on the registered company by one of the approved methods. These include: leaving it at the company's registered office; posting it to the registered office address; delivering it to a director at their residential address; or by email (if the company has agreed to electronic service or a court has directed this). The safest method is personal delivery to the registered office by courier or in person, as this creates a clear record of service. The 15 working day response period begins on the date of service. It is important to retain evidence of the date of service — such as a signed acknowledgement, courier receipt, or statutory declaration of service. Under New Zealand law, specifically the Companies Act 1993, parties should seek independent legal advice to confirm compliance with all applicable requirements and confirm the document meets the standards set by the relevant regulatory authorities.
Yes. Under section 290 of the Companies Act 1993, the debtor company may apply to the High Court of New Zealand to have the statutory demand set aside within 15 working days of service. The grounds for setting aside include: the company has a genuine and substantial dispute about whether the debt is owing or is due; the company has an offsetting claim (a cross-claim) that equals or exceeds the claimed debt; there is some other reason why the demand should be set aside (such as a defect in the demand itself). The High Court has discretion to set aside a demand even if the threshold for insolvency is technically met if it is just to do so. If the company applies to set aside the demand, the running of the 15 working day period is suspended until the application is determined. Companies that receive a statutory demand should urgently seek legal advice from a New Zealand lawyer or barrister.
If the debtor company fails to pay the debt, reach a compromise with the creditor, or apply to the High Court to set aside the demand within 15 working days of service, the company is deemed to be unable to pay its debts under section 287(b) of the Companies Act 1993. This allows the creditor to apply to the High Court for an order placing the company into liquidation under section 241 of the Act. Liquidation is a formal insolvency process in which a liquidator is appointed to collect and realise the company's assets, pay creditors according to the priority order in the Act, and ultimately dissolve the company. The consequences of liquidation are severe — directors may face personal liability for insolvent trading under section 135 of the Companies Act 1993, and the company will cease to exist. The threat of liquidation is often sufficient to prompt payment.
The minimum debt amount for a valid statutory demand under section 289 of the Companies Act 1993 is NZD $1,000. The debt must be due and payable at the time the demand is served — future debts or contingent debts (debts that depend on a future event occurring) cannot be the subject of a statutory demand. The debt must also be a liquidated sum — meaning an amount that is certain or capable of being made certain by calculation. Disputed debts or amounts that are genuinely contested should not form the basis of a statutory demand, as the court may set aside a demand made in respect of a genuinely disputed debt, and may make adverse costs orders against a creditor who misuses the statutory demand process. Under New Zealand law, specifically the Companies Act 1993, parties should seek independent legal advice to confirm compliance with all applicable requirements and confirm the document meets the standards set by the relevant regulatory authorities.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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