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Jaswinder (Jas) Singh Sekhon, Author at Goldman Lawyers

Statutory Credit Demands

STATUTORY DEMANDS — PART 5.4 CORPORATIONS ACT 2001 (CTH)

STATUTORY DEMANDS: YOU MUST ACT BEFORE 21 DAYS!

The statutory minimum debt ($4,000) and a set-aside application under s 459G must be filed AND served within the 21 days, with no extensions.

UNDERSTANDING STATUTORY DEMANDS

Your Guide

A creditor’s statutory demand is a prescribed demand under section 459E of the Corporations Act 2001 (Cth) requiring a company to pay, secure or compound an eligible debt within 21 days. It is a powerful insolvency procedure, not merely an ordinary debt-collection letter. If the company neither complies nor files and serves a valid set-aside application within time, a presumption of insolvency can arise and support a winding-up application. The debt, demand, affidavit and service must therefore be checked immediately.

Jaswinder Says

A statutory demand is won or lost in the first days: verify the debt, service, supporting affidavit and available set-aside grounds immediately.

— Jaswinder (Jas) Sekhon · Director / Principal

How the STAT DEMAND Process Unfolds

FROM SERVICE TO WINDING-UP RISK

The procedure begins when a compliant statutory demand is served on the company at its registered office or by another valid method. The 21-day period runs strictly, and the company cannot rely on informal negotiations while allowing the filing deadline to expire.

A genuine dispute, offsetting claim or defect causing substantial injustice may support a set-aside application if raised properly and in time. Non-compliance creates a presumption of insolvency that a creditor may rely on in a later winding-up application. The stages below show the usual sequence, but urgent legal review is required as soon as the demand is received or before one is issued.

HOW MUCH DOES A DEMAND COST OR YOUR LEGAL COSTS TO SERVE OR ISSUE STAT DEMANDS?

INDICATIVE CUMULATIVE COSTS AND TIME

The cost pathway depends on whether the demand prompts payment, is resolved by negotiation, proceeds to a set-aside application or leads to winding-up litigation. Because the 21-day deadline is strict, legal work is often compressed and urgent evidence may be required from directors, accountants and the creditor.

The charts are illustrative only and do not account for every solvency report, contested debt issue, substitution application or appeal. A creditor should assess the risk of a genuine dispute before issuing, and a company should act immediately rather than using the demand as a negotiation timetable.

Statutory demand costs should be compared with the debt, recoverability, solvency evidence, the prospects of a genuine dispute and the commercial consequences of a winding-up application. Excluding counsel costs.

Indicative planning ranges only. Figures exclude GST and disbursements unless stated and must be confirmed in a matter-specific written estimate.

Videos, Guides and Articles

INSIGHTS AND PRACTICAL GUIDANCE

Use these resources to understand the procedure, prepare more effectively and identify the questions that should be addressed before the next stage.

VIDEOS & GUIDES

Voluntary administration, liquidation and receivership

Who controls the company, what happens to claims and how creditor rights differ.

Voluntary administration, liquidation and receivership

Who controls the company, what happens to claims and how creditor rights differ.

ARTICLES

Treat every statutory demand as a 21-day emergency!

Key terms defined

GLOSSARY — STATUTORY DEMAND TERMS

Statutory demand a formal demand under s 459E requiring a company to pay, secure or compound a debt of $4,000 or more within 21 days

Genuine dispute a real, not spurious, dispute about the existence or amount of the debt

Offsetting claim a genuine counterclaim, set-off or cross-demand reducing the amount payable

Presumption of
insolvency
the presumption arising from non-compliance, available for 3 months (s 459C)

Setting aside (s 459G) the court application to set the demand aside, filed and served within 21 days

Winding-up
application
the creditor’s application to have the company wound up in insolvency.

Frequently Asked Questions

COMMON QUESTIONS

A statutory demand is the fastest way a company can be pushed towards winding up. The 21-day deadline cannot be extended once it passes. If a demand has been served on your company, read question four first.

A creditor’s statutory demand is a formal written demand under section 459E of the Corporations Act 2001 (Cth) requiring a company to pay a debt within 21 days. It is not a court order and it is not an ordinary letter of demand. Ignoring it is serious: the company is then presumed insolvent and can be wound up.

The debt must exceed $4,000. This statutory minimum has applied since 1 July 2021, when it was permanently doubled from $2,000. If the debt is $4,000 or less — or falls to that level once genuine offsetting claims are taken into account — the demand can be set aside.

21 days from the day the demand is served. Within that period the company must both file an application to set the demand aside and serve it, with a supporting affidavit, on the creditor. Filing alone is not enough — service inside the 21 days is essential.

No. The 21-day period under section 459G is strict and the court has no power to extend it once it has expired. This is the most common and most damaging mistake made with statutory demands. If a demand arrives, get advice the same week it is served.

A genuine dispute is a real, arguable disagreement about whether the debt is owed. The court does not decide who is right — only whether there is a plausible contention that needs investigating. The threshold is low, but the dispute must be genuine and supported by evidence, not merely asserted.

An offsetting claim is a genuine counterclaim, set-off or cross-demand the company has against the creditor. It does not have to arise out of the same transaction. If the offsetting claim brings the debt down to $4,000 or less, the demand can be set aside, or the amount varied.

Yes, but generally only where the defect would cause substantial injustice — for example a materially misstated amount, a wrongly identified creditor, or a missing or non-compliant affidavit. Minor errors that mislead nobody will not be enough. A court can also set a demand aside for “some other reason”.

They can, but they should not. Issuing a statutory demand where there is a genuine dispute is an abuse of the process. The likely outcome is that the demand is set aside with a costs order against the creditor, sometimes on the indemnity basis, and the debt still has to be sued for in the ordinary way.

The company is presumed to be insolvent. The creditor can then apply to wind the company up, and that application must generally be made within three months after the compliance period ends. At the winding-up hearing the company cannot raise the dispute about the debt without the court’s leave.

Solvency evidence can rebut the presumption of insolvency at a winding-up hearing, but it is expensive, needs detailed and current financial evidence, and does not cure a missed set-aside deadline. It is a fallback, not a plan. Responding properly within 21 days is far cheaper.

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Regulatory, Health & Administrative Disputes

PROFESSIONAL REGULATION, LICENSING & GOVERNMENT REVIEW

PROTECT YOUR PROFSSION & BUSINESS: REGULATORY & LICENSING ACTION REVEIW LAWYERS

Most merits-review applications must be lodged within 28 days of the decision, and AHPRA can take immediate action against a practitioner’s registration before any hearing.

REGULATORY & LICENSING DISPUTES 

Your Guide

Regulatory and administrative disputes are challenges to decisions of regulators such as AHPRA and the National Boards, licensing bodies and government agencies, pursued through internal review, merits review in a tribunal, or judicial review in court.

The key distinction is between merits review, which remakes the decision on the facts and law, and judicial review, which examines legal error. Deadlines, stay applications and the evidentiary record require immediate attention.

Jaswinder Says

A regulatory response should aim to protect the immediate right to practise while building the factual and expert record needed for the final review.

— Jaswinder (Jas) Sekhon · Director / Principal

How the REVIEW Process Unfolds

FROM NOTICE TO REVIEW AND FINAL DETERMINATION

The process commonly begins with a complaint, investigation notice, proposed condition, refusal, suspension or immediate-action decision. Early submissions can influence whether the matter resolves without a formal hearing and what evidence is accepted into the record.

Urgent stay or interim relief may be required to preserve registration, employment, income or business operations pending review. Merits review usually involves fresh consideration of the decision, while judicial review focuses on jurisdiction, procedure and legal error. The stages below provide a practical guide, but the statute, regulator, tribunal and applicable filing deadline must be checked for every matter.

Most important: Say nothing, engage professional lawyers as soon as you become aware of any proposed action by any regulator or licensing body.

How much does challenging a regulator or licensing body cost?

INDICATIVE CUMULATIVE COSTS AND TIME

The cost pathway differs between early submissions, NCAT merits review, federal Administrative Review Tribunal proceedings and court-based judicial review. Expert reports, urgent stay applications, multiple allegations and parallel employment or criminal issues can increase complexity and urgency.

The figures are indicative planning ranges only and must be checked against the regulator, statutory scheme and scope of evidence. Early strategy should focus on preserving practice rights, controlling the record and matching the legal forum to the actual error or outcome challenged.

Regulatory cost planning should account for the professional and commercial consequences of interim restrictions, the need for expert evidence, parallel proceedings and the value of an early, well-supported resolution.

Indicative planning ranges only. Figures exclude GST and disbursements unless stated and must be confirmed in a matter-specific written estimate.

Videos, Guides and Articles

INSIGHTS AND PRACTICAL GUIDANCE

Use these resources to understand the procedure, prepare more effectively and identify the questions that should be addressed before the next stage.

VIDEOS & GUIDES

Voluntary administration, liquidation and receivership

Who controls the company, what happens to claims and how creditor rights differ.

Voluntary administration, liquidation and receivership

Who controls the company, what happens to claims and how creditor rights differ.

ARTICLES

You must protect your business and profession before action.

Key terms defined

GLOSSARY — REGULATORY & ADMINISTRATIVE LAW TERMS

AHPRA notification a complaint or concern lodged with the regulator about a health practitioner

Immediate action urgent suspension or conditions imposed to protect the public before a full hearing

Show-cause notice a notice requiring written submissions on why proposed action should not be taken

Conditions &
undertakings
restrictions on practice imposed by, or agreed with, the regulator

Merits review a tribunal remaking the decision on the facts and law to reach the correct and preferable outcome

Judicial review a court examining whether the decision was lawfully made (ADJR Act / s 75(v)), not whether it was right.

Frequently Asked Questions

COMMON QUESTIONS

Regulatory decisions move quickly and the review deadlines are short. What you write in your first response usually shapes the entire outcome. These answers cover health practitioner regulation and administrative review generally.

AHPRA and the relevant National Board gather information, assess the risk to the public, and normally invite you to make a written submission. The Board can take no further action, caution you, impose conditions, accept an undertaking, or refer the matter to a tribunal. What you put in that first submission shapes everything that follows.

Yes. NSW is a co-regulatory jurisdiction. Complaints about registered health practitioners in NSW are handled by the Health Care Complaints Commission and the relevant NSW health professional council, supported by the Health Professional Councils Authority — not by AHPRA directly. The process, timeframes and review rights differ, so get NSW-specific advice.

Often yes. But the regulator can take immediate action — suspending your registration or imposing conditions — before any finding is made, if it believes there is a serious risk to the public. If that happens you usually have a short window to seek review or a stay, so respond urgently.

Immediate action is an interim protective step taken before a matter is finally decided — typically suspension, conditions on practice, or accepting an undertaking. It is not a finding of guilt. You are normally given a short opportunity to respond before it takes effect, and the decision can usually be reviewed by a tribunal.

Merits review means a tribunal stands in the shoes of the original decision-maker and decides the matter again — the facts, the law and any discretion — to reach the correct or preferable decision. It can consider new evidence. In NSW this is usually NCAT; at the federal level it is the Administrative Review Tribunal, which replaced the AAT in October 2024.

Judicial review asks whether the decision was made lawfully — was there power to make it, was the correct procedure followed, was there a legal error or a denial of procedural fairness. The court does not decide whether the decision was right. If judicial review succeeds, the decision is usually sent back to be made again.

It depends on the legislation and the type of decision, and some deadlines are as short as 28 days. The decision notice will normally state your review rights and the time limit. Read it the day it arrives — missing the deadline can end your rights entirely.

Sometimes. A stay may be available under the governing statute, but you have to apply for it and satisfy the relevant test — usually an arguable case, the balance of convenience, and the public interest. In health matters, protection of the public weighs heavily against granting a stay.

Often, particularly in health, technical and professional matters. Where the question is whether your conduct met accepted professional standards, evidence from a peer in the same field is usually essential. Expert evidence must be independent and comply with the tribunal’s expert witness code of conduct.

Yes, and often quickly. A condition or suspension on your registration can set off your employer’s own disciplinary process, and many contracts allow termination. You may also have to tell your professional indemnity insurer, other regulators, and employers in other states. Deal with all of that at the same time, not afterwards.

Usually yes, but appeal rights are narrower than review rights and are often limited to questions of law. There is a specific statutory pathway — for example an internal NCAT Appeal Panel and then the Supreme Court — and a strict deadline. Check the appeal route stated in the decision itself.

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CREDITOR RIGHTS, RESTRUCTURING AND TRUST LITIGATION

Insolvency Asset & Trust Disputes

A plain-English guide to oppression claims, breaches of directors’ duties, company deadlock, and how share buy-outs and winding-up work in Australia.

Understanding insolvency and trust disputes

Your Guide

A company is insolvent when it cannot pay debts as and when they fall due. Formal processes include voluntary administration, liquidation, restructuring and receivership, while personal insolvency is governed by bankruptcy law. Each process has strict gateways, priority rules and review rights.

Trust and asset disputes can involve the validity and administration of a trust, trustee duties, access to information, distributions, removal of trustees and claims that trust property should be available to creditors. The facts, governing instrument and statutory context must be analysed together.

Jaswinder Says

In insolvency work, timing and evidence determine leverage: a missed deadline or untested assumption can change the entire recovery position.

— Jaswinder (Jas) Sekhon · Director / Principal

How the Process Unfolds

FROM DEFAULT TO REVIEW AND DISTRIBUTION

Insolvency disputes usually begin with default, a demand, an appointment or a disagreement about control of assets or trust property. The appointment of an administrator, liquidator, receiver or trustee changes who controls the process and how claims must be advanced. Creditors often need to lodge proofs, preserve security rights and respond quickly to reports, meetings and proposed distributions.

Clawback, priority and trust claims may require detailed tracing, expert accounting evidence and court directions or substantive proceedings. The pathway below is a high-level guide and must be adapted to the
appointment, asset position, security structure and limitation periods.

Indicative Insolvency And Trust Dispute Cost Meter

INDICATIVE CUMULATIVE COSTS AND TIME

The cost profile depends on whether the issue is confined to creditor review, requires an administrator’s determination, proceeds to winding-up or involves complex trust and clawback litigation. Forensic accounting, document reconstruction, multiple entities and disputed beneficial ownership can materially increase the work required.

The charts are illustrative and do not replace a written scope or estimate for the particular appointment and recovery strategy. A disciplined merits and recoverability assessment should be completed
before significant litigation expenditure is committed.

Recovery strategy should be tested against asset availability, security, priority, limitation periods, the administrator’s evidence and the likely net return after legal, expert and insolvency-administration costs.

All figures are indicative planning ranges only, exclude GST and disbursements unless stated, and must be verified in a written estimate for the specific matter.

Videos, Guides and Articles

INSIGHTS AND PRACTICAL GUIDANCE

Use these resources to understand the procedure, prepare more effectively and identify the questions that should be addressed before the next stage.
The titles and summaries below are editable placeholders for the final published video and article links.

VIDEOS & GUIDES

Voluntary administration, liquidation and receivership

Who controls the company, what happens to claims and how creditor rights differ.

Voluntary administration, liquidation and receivership

Who controls the company, what happens to claims and how creditor rights differ.

MORE ARTICLES BY JASWINDER (JAS) SEKHON

Test recovery, priority and control before value disappears.

Key terms defined

Loream Ipsum

Oppressionconduct of a company’s affairs that is unfairly prejudicial to one or more members.

Deadlocka stalemate  usually between 50/50 owners that stops the company being managed.

Derivative actiona claim brought in the company’s own name by a member when the directors will not act.

Buy-out ordera court order that one party purchase another’s shares at a set value.

Winding upthe formal closing of a company, with its assets sold and distributed.

Fiduciary dutythe obligation of a director to act loyally in the company’s interests.

Frequently Asked Questions

COMMON QUESTIONS

Practical answers about the process, deadlines, costs, evidence and likely next steps.
These responses are general information only and should be checked against the facts and applicable jurisdiction.

A company is insolvent when it cannot pay its debts as and when they become due and payable.

Administration explores rescue or a deed arrangement; liquidation winds up the company and distributes assets.

A creditor submits the prescribed proof and supporting evidence to the external administrator for adjudication.

Potentially, if the transaction is voidable under the statutory tests and the available defences do not apply.

Priority depends on security, statutory employee priorities, costs of administration and the applicable distribution rules.

A court may remove and replace a trustee where the trust’s proper administration requires it.

That depends on ownership, trust terms, trustee indemnity rights and whether the structure or transactions are successfully challenged.

Yes, wholly or partly, but the creditor may have review rights within a strict timeframe.

Directors may face liability if a company incurs debts while insolvent and the statutory elements are established.

Many are. Proof reviews, set-aside applications, voidable transaction claims and appeals all require prompt attention.Directors may face liability if a company incurs debts while insolvent and the statutory elements are established.

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Court Costs Jurisdictional Limits

LITIGATION COSTS AND COURT CHOICE

Court costs and court limits. Which court do I use?

Understand the likely spend, the right forum, recoverable costs and the decisions that can control your litigation budget.

UNDERSTANDING COURT COSTS AND JURISDICTIONAL LIMITS

YOUR GUIDE

In NSW, which court hears your claim and what it costs depends mainly on the amount in dispute: smaller claims are heard in the Local Court or NCAT, midrange claims in the District Court, and the largest or most complex in the Supreme Court of NSW.

Goldman Lawyers provides a clear winning litigation strategy, guidance, transparent estimates and strategic advice throughout the life of a matter, including filing fees, professional costs, expert evidence, mediation, hearing preparation, costs orders and recovery.

Jaswinder Says

Early planning, disciplined evidence
and a commercially realistic strategy
are the best ways to manage litigation
cost and greatly improve the outcome's.

— Jaswinder (Jas) Sekhon · Director / Principal

How the Court Process Unfolds

THE JOURNEY OF A TYPICAL NSW LITIGATION MATTER

Most disputes move through a recognisable sequence, although the exact route depends on the court, claim value and urgency. Timing and expenditure can change materially when evidence is extensive, expert witnesses are required or interim applications are sought.

The six stages below show the usual progression from early advice and filing through case management, mediation and hearing. Some matters settle at an early stage; others require multiple applications, substantial preparation or post-judgment costs work. Use this pathway as a planning guide and review the time and cost range against the facts, forum and strategy of your matter.

Indicative & Cumulative Cost Meter

INDICATIVE CUMULATIVE COSTS AND TIME

The diagrams compare how cumulative expenditure may build across NCAT, the Local Court, the District Court and the NSW Supreme Court. They also show how elapsed time can rise as the matter moves from pre-action work to filing, interlocutory steps, mediation, hearing and costs assessment.

The ranges are illustrative only: urgent injunctions, expert evidence, multiple parties, appeals and lengthy hearings can materially increase both time and spend. A staged budget, regular review points and a realistic settlement strategy are essential to keeping proportionality and commercial value in focus. You also need to factor in the costs of counsel (barristers).

Actual costs should be assessed against the jurisdiction, experience and costs of counsel, the conduct of the parties, the number of witnesses, the volume of evidence and the commercial value of the outcome. Early advice and disciplined case management can reduce unnecessary steps and improve settlement leverage.

Indicative planning ranges only. Figures exclude GST and disbursements unless stated and must be confirmed in a matter-specific written estimate.

Videos, Guides and Articles

INSIGHTS AND PRACTICAL GUIDANCE

Use these resources to understand the procedure, prepare more effectively and identify the questions that should be addressed before the next stage.

VIDEOS & GUIDES

Voluntary administration, liquidation and receivership

Who controls the company, what happens to claims and how creditor rights differ.

Voluntary administration, liquidation and receivership

Who controls the company, what happens to claims and how creditor rights differ.

ARTICLES

Get clarity and transparency on costs before you start

Key terms defined

GLOSSARY - COURT COSTS & JURISDICTION TERMS

Jurisdictional limitthe maximum amount a court can award; claims above it belong in a higher court.

Costs follow
the event
the usual rule that the unsuccessful party pays part of the winner’s costs.

Ordinary (party-
and-party) vs
indemnity costs
the standard partial recovery basis vs the higher basis ordered for unreasonable conduct or after certain offers.

Offer of compromise
/ Calderbank offer
formal settlement offers that can shift costs to the indemnity basis if unreasonably refused

Security for costsmoney or a guarantee a plaintiff may be ordered to provide for the defendant’s costs.

Disbursementsout-of-pocket expenses such as filing fees, counsel and expert fees.

Frequently Asked Questions

COMMON QUESTIONS

Legal costs are the first question most people ask and the last one most websites answer clearly. Below are straight answers on who pays, how much you get back, and what you can do to control the risk.

Usually the losing side pays part of the winning side’s legal costs. This is called a costs order. It is not automatic — the judge has a discretion, and the outcome depends on the court, the result, and how each party behaved during the case. You will almost never recover everything you paid your own lawyers.

No. “Costs follow the event” is the starting point, not a rule. A judge can order something different if you won on only some issues, rejected a reasonable settlement offer, ran the case unreasonably, or missed court deadlines. The court can also order each side to bear its own costs.

Yes, often substantially. The most expensive parts of litigation are preparing evidence and running the hearing. Mediating before that work is done can end the dispute outright, or narrow the issues so the hearing is shorter and cheaper for everyone.

Usually not. On a standard costs order (the “ordinary” or “party and party” basis) you typically recover well under what you actually paid — often somewhere between half and two thirds. Fuller recovery only comes with an indemnity costs order, which is exceptional.

In one of three ways: the parties agree a figure; the costs are calculated under a court scale; or a costs assessor reviews the bill and decides what was reasonably incurred and reasonable in amount. Which applies depends on the court and the wording of the costs order. Assessment itself takes time and money.

It depends on how much you are claiming and what remedy you want. In NSW the Local Court hears claims up to $100,000 (its Small Claims Division deals with claims up to $20,000), the District Court hears claims up to $1.25 million, and the Supreme Court has no monetary limit. Some claims must go to a specific court or tribunal under legislation.

Party and party (ordinary basis) costs cover what was necessary to run the case, and recovery is partial. Indemnity costs cover everything reasonably incurred and give the winner a much higher recovery. Courts order indemnity costs in limited situations — for example where a party rejected a reasonable offer or ran a hopeless case.

Whatever the settlement agreement says. Costs are part of the negotiation, and the terms should state clearly whether one side pays the other’s costs, how much, and by when. If the agreement is silent you may need a further court application or a formal costs assessment — an avoidable expense.

In most cases yes, fees are payable when you file. Courts charge separate fees for filing, hearing days and some applications, and corporations pay higher fees than individuals. Waivers, reductions or postponement may be available for concession card holders or where paying would cause financial hardship.

Yes. A properly drafted offer — such as a formal offer of compromise or a Calderbank letter — puts the other side at risk. If they reject it and end up with a result no better than the offer, the court can order them to pay your costs from the date of the offer, often on the indemnity basis.

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Commercial Litigation & Dispute Resolution Lawyers Australia | Sydney Business, Contract & Property Disputes

Commercial, Property & Assets Litigation Lawyers — Sydney & Australia

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  • Our own proprietary AI-assisted litigation technology from GoldTech Vault” — managing disclosure, document review and workflow in-house without third-party outsourcing;
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A Distinctive Approach is Our Proven Difference

In our experience, most large law firms operate as legal silos — clients needing multi-disciplinary expertise are passed between divisions. Goldman Law owns its 30 years of multi-disciplinary, top-tier expertise. Our founder and Litigation Director personally oversees and drives every litigation strategy. 

Our in-house GoldTech Vault litigation platform provides advanced, AI-assisted analytical capabilities that reduce work peaks and deliver strategic advantages rarely available to other firms — without outsourcing your confidential data to third parties.

Look for past results, strategy, knowledge, and capacity. You also need to know about the firm’s relationships with leading counsel (barristers).

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A selection of matters handled by Goldman Law's Litigation Team:

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Commercial Litigation FAQs — NSW

Real client FAQs. Compiled over 10 years across Australia.

Do I need a lawyer for a commercial dispute in NSW?

In most commercial disputes above $20,000, experienced legal representation significantly improves outcomes. Early advice — even before proceedings commence — can prevent costly mistakes and often leads to faster, cheaper resolution.

What are the usual steps in the NSW litigation process?

Most commercial litigation in NSW follows 7–8 stages: pre-action negotiations → commencement → defence → discovery → mediation → pre-trial preparation → hearing → costs assessment. Goldman Law’s Litigation Process Map gives you a clear roadmap at the outset.

How long does it take to resolve a commercial dispute in Sydney?

Simple disputes can resolve in 3–6 months via mediation. Complex multi-party matters in the Supreme or Federal Court may take 12–36 months. We provide a realistic timeline estimate in our initial case assessment.

Costs depend on complexity and forum. Our fixed-fee menu (see above) gives you a clear indication from Stage 1. The general rule in NSW is that costs follow the event — the losing party pays a proportion of the winner’s costs — but this is discretionary.

Can we settle a dispute without going to court?

Yes. Most commercial disputes in NSW can and should be resolved through negotiation, mediation or conciliation. Goldman Law actively pursues early resolution where it makes commercial sense, saving time and preserving business relationships.

What should I do if I receive a Statement of Claim in Sydney?

Act immediately — you typically have 28 days to file a defence in NSW. Contact us as soon as possible. Late responses can result in default judgment against you.

Do you offer fixed-fee or no-win, no-fee commercial litigation?

We offer fixed-fee and capped-fee structures at every stage (see our fee menu above). No-win, no-fee arrangements are assessed on a case-by-case basis — contact us to discuss your specific matter.

Is my case handled personally by a partner?

Yes. Unlike large firms, Goldman Law’s Litigation Director Jaswinder (Jas) Sekhon is personally involved in strategy and oversight at every stage.We offer fixed-fee and capped-fee structures at every stage (see our fee menu above). No-win, no-fee arrangements are assessed on a case-by-case basis — contact us to discuss your specific matter.

Is ALSP secure?

Yes. Our GoldTech Vault is Goldman Law’s own proprietary secure digital platform — there is no third-party outsourcing of your confidential case data.

Do you act for small and medium enterprises (SMEs)?

Yes. We act for businesses of all sizes — from individual high-net-worth clients to SMEs and major commercial lenders. Our transparent fee structures are designed to make senior-quality litigation accessible to businesses that can’t justify big-firm fees.

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CORPORATE, SHAREHOLDER, DIRECTOR & PARTNERSHIP DISPUTES

Shareholder, Director & Partnership Dispute Lawyers in Sydney

When business relationships break down, delay can destroy value. Goldman & Co Lawyers acts in shareholder, director and partnership disputes involving control, governance, money, deadlock and exit arrangements across Sydney and NSW.

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What Is a Shareholder Dispute?

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A shareholder dispute arises when owners of a company disagree about control, money or direction — dividends withheld, information denied, directors preferring their own interests, or a majority squeezing out a minority. The Corporations Act 2001 (Cth) gives shareholders powerful remedies, including the oppression remedy under sections 232–233, court-ordered buyouts and, in extreme cases, winding up.

Shareholder, Director & Partnership Matters We Handle

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We act for majority and minority shareholders, directors, partners and companies across Sydney in:

Dividends, dilution, exclusion from management

Conflicts, related-party dealings, breach of duty claims

50/50 shareholdings and board paralysis

Including applications under section 247A of the Corporations Act

Dissolution, valuation and departure terms

Protecting the business during and after a falling-out

How We Protect Your Position

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We identify what needs immediate protection first: cashflow, records, control, staff, customers or reputation. We then advise on negotiation strategy, governance steps, buyout pathways, mediation and, where necessary, injunctions or court relief.

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Legal Tips & Secrets Revealed! What Lawyers Don’t Tell Their Clients.

Shareholder & Partnership Dispute FAQs

Compiled With Over 10Years of Data From Real Client Questions

What rights does a minority shareholder have?

More than most people expect. Depending on the company’s constitution, any shareholders agreement and the conduct complained of, minority owners may have remedies where conduct is oppressive or unfairly prejudicial — including court-ordered share buyouts at fair value under the Corporations Act oppression provisions.

Can a director be personally liable in a dispute?

Potentially yes. Personal exposure can arise through guarantees, statutory duties, breach of duty allegations or specific conduct. It should be assessed early — before positions are taken in correspondence that make exposure worse.

What if the business is deadlocked?

Deadlock disputes need immediate strategy so the business keeps operating while the parties explore negotiation, mediation, buyout or court-based relief. The longer a deadlock runs, the more value leaks to competitors, staff departures and stalled decisions.

Do all shareholder disputes end in court?

No. Many resolve through strategic negotiation or mediation once the legal position, leverage points and commercial realities are clearly identified. Court remains the backstop — and having a credible litigation pathway is usually what makes the negotiated outcome possible.

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ASSET PROTECTION MOVES INTO THE MARRIAGE? GAMBLING & WASTEFUL SPOUSES.

Introduction

How will the Court deal with your financial property dispute now that wastage, stealing, or other losses by one party will now not be added back to the balance sheet (asset pool of the parties).
Goldman Law provides planning tips to avoid property injustices in family law disputes.

What Was The Problem With Add Backs?

In Australian family law financial matters, “addbacks” refer to amounts of money or assets added back into the matrimonial asset pool during property settlements. Addbacks address financial conduct by one party that has unfairly reduced the available assets for distribution.

Common reasons for addbacks include:

  1. Wasteful Expenditure:
    Funds spent recklessly, extravagantly, or without mutual agreement after separation.
  1. Assets Hidden or Disposed of:
    Assets deliberately hidden, transferred, or sold at undervalue to diminish the pool available for division.
  1. Legal Costs Paid from Joint Assets:
    Legal fees paid from joint funds without mutual consent or inappropriately.
  1. Unilateral Use of Joint Assets:
    One party unilaterally accessing joint funds for personal use post-separation, significantly reducing the pool.
  1. Premature Distribution:
    Taking and using property or funds without agreement prior to a formal property settlement, thus altering the equity of distribution.

The Law Prior to the Shinohara Decision

The Australian courts consider addbacks carefully, following the principles established in the landmark case Stanford v Stanford[1], focusing primarily on whether an addback is just and equitable in the context of the overall settlement.

After Stanford v Stanford, In Bevan,[1] Bryant CJ and Thackray J said  “notional property”, which is sometimes “added back” to a list of assets to account for the unilateral disposal of assets, is unlikely to constitute “property of the parties to the marriage or either of them” and that such add backs form part of the forms part of the history of the marriage.

The Decision In Shinohara

The Full Court of the Federal Circuit and Family Court of Australia has considered how the post-10 June 2025 amendments to the Family Law Act affect the inclusion of add backs in financial proceedings.

The Full Court rejected the father’s argument that the statutory amendments merely codified case law allowing such add backs. Instead, their Honours clarified:

  • Section 79(3) requires a court to identify and adjust only current property.
  • Add backs must not be placed in the balance sheet for division purposes.

The Court has said that the categories of “notional add-backs” and principles as to adding back property items or expenditure on a ‘dollar for dollar’ basis must not be added back into the balance sheet at all, but taken up as part of either a holistic weighting of contributions, or via s79(5) (i.e. formerly, s75(2)).

In the Shinohara case, the trial judge thus had erred in adding to the balance the “addbacks” and this was notional property, or property that did not exist.

The recent amendments to the Family Law Act were considered not to codify such an action but rather to look at “addbacks” in the context of the history of the relationship; and considerations as to “current and future” circumstances.

…“Section 79(5)(d) directs consideration as to whether a party has engaged in wastage of property or financial resources and its impact on the financial circumstances of the parties at the time of the assessment, being the date of trial,..”[1]

“So that it is clear, s 79 now directs that the categories identified in  Omancini pre-amendment that were notionally added back are to be considered in ensuring a just and equitable outcome, either by way of historical contributions, or by way of their relationship to and impact upon the current and future circumstances at the s 79(5) stage. “[2] 

What Has Changed ?

Following the recent amendments to the Family Law Act, notional addbacks cannot be “property: for distribution or orders between the parties. Add backs are and can be taken into account holistically within the broader range of just and equitable considerations that exist post 2024 amendments.

What Does This Mean For Clients?

Family lawyers debate about changing the “form” in the FCFOA to remove addbacks. Sadly, this misses the point as far as what clients now need to do to be protected from wasteful spouses. It is the consideration of such acts holistically to arrive at a just and equitable position between the parties. However, if a party wastes assets, AND there are insufficient assets for a just and equitable division of assets. This remains a serious issue in terms of what is then possible to reallocate in terms of the remaining assets for a fair split.

Client Strategies. You MUST Consider this!

Clients need to ensure that prior to financial proceedings or separation that they:

  1. Make sure that the opportunity to waste assets is minimized.
  2. The keeping of separate assets accounts and possibly separate liquid assets.
  3. Great care is taken in joint liabilities and things such as joint mortgages.

YOU must protect your assets whilst you are married otherwise it may be too late! Goldman Lawyers are experts in asset protection strategies and we welcome an initial strategy discussion.

It’s not just creditors that you have to worry about. Worry about the protection assets from a spendthrift, wasteful or gambling spouse.

Endnotes

[1] (2012) 247 CLR 108

[2] (2013) FLC 93-545 at [79]

[3] Shinhora ibid at para [124]

[4] Ibid at para [125]

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