Can You Serve a Statutory Demand on a Company by Email in Australia?

What is a statutory demand and how do you usually serve them?

A statutory demand (“demand”) is a formal notice to a company, issued by a creditor requiring payment of a debt.

Under section 109X of the Corporations Act 2001 (Cth), service would usually be provided by leaving the demand at the company’s registered office, posting it to that address, or personally delivering it to a company director. These methods were long seen as the safest way to ensure valid service.

With technology becoming central to business communication, many legal processes are shifting online. This raises an important question: can a statutory demand, traditionally a formal and technical legal document, now be served by email in Australia?

Modernising the law

The law has recently evolved to reflect modern communication practices. Amendments to the Corporations Act now permit documents, including statutory demands, to be served electronically under the framework in Part 1.2AA.

It is now accepted that demands can be served by email, provided certain conditions are met:

• the email must be sent to an address that the sender reasonably believes is current and correct, and
• the document itself must be accessible to the recipient.

Importantly, the law does not require the recipient to actually open or read the email – only that it is capable of being retrieved.

Advantages of electronic statutory demands for creditors

This shift to electronic service has significant practical advantages. For creditors, email allows for faster and more cost‑effective service, removing the delays associated with post or courier delivery. It enables quicker progression of debt recovery processes and makes it easier to meet strict legal deadlines.

Disadvantages of electronic statutory demands for creditors

At the same time, however, it places a responsibility on creditors to ensure that service can be proven. If challenged, a creditor may need to rely on evidence such as email logs, delivery confirmations, or prior correspondence demonstrating that the email address used was valid. If this cannot be established, the service may be found ineffective.

Disadvantages of electronic statutory demands for debtors

For debtor companies, the move to email service introduces new risks. Unlike physical mail, emails can easily be overlooked, filtered into junk folders, or missed if proper processes are not in place. Despite this, the 21‑day deadline begins when the email is received, not when it is read. As a result, failing to identify and respond to an emailed demand can have serious consequences, including the legal presumption of insolvency and potential winding‑up proceedings.

Conclusion

While the amendment reflects a broader shift towards modern, efficient legal processes, the convenience of email should not diminish the seriousness of the demand. A statutory demand remains a strict and technical legal tool with significant consequences. Both creditors and debtor companies must exercise care: creditors should ensure valid and provable service, whilst debtors should maintain oversight of their communications.

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