A missed statutory demand exposes financial records held outside the company

The urgent advice request reveals an access problem

A hypothetical director seeks help after ignoring a statutory demand. The adviser asks for current financial records, but key files are held by an external bookkeeper and a separate fee dispute has stalled the handover. Explain both problems immediately. Do not delay legal advice until the records disagreement is resolved or assume that incomplete books make the demand less urgent.

Identify what is held and what is missing

List the financial systems, reports and source documents needed, with the person or provider holding each item. Record the latest date covered by material already available. Distinguish missing access from missing information: the company may lawfully hold bank statements and invoices even when it cannot open the bookkeeper's working file. Give the adviser those records with their limitations.

Keep responsibility for the financial position visible

ASIC's director guidance emphasises keeping informed about company finances and maintaining proper records. Ask the lawyer and accountant what information is essential for the immediate assessment and how it can properly be obtained. This article does not decide ownership of a bookkeeper's files or any right to withhold them over fees.

Source: ASIC: Insolvency for directors

Make a targeted authorised request

In the hypothetical example, ask for identified reports or exports through the appropriate channel rather than demanding unrestricted access to every system. Preserve the request and response. Do not reuse revoked credentials or ask staff to impersonate the provider. If the provider refuses or imposes conditions, give that response to the lawyer for advice on the next step.

Reconstruct only what can be supported

Use lawfully available bank, supplier and customer records to prepare a provisional financial picture with professional assistance. Mark estimates and gaps clearly. Do not present a reconstructed balance as a completed set of accounts or silently omit liabilities because the corresponding file is unavailable. The adviser needs to understand the uncertainty, not just receive a reassuring total.

Run the two issues in parallel

Confirm who handles the statutory-demand consequences and who pursues the records issue, with a clear route for new information. CRP can help organise the financial material. The useful decision is how to support urgent advice with available evidence while pursuing missing records properly, rather than letting a separate provider dispute leave the company without a response.