A relative offers rescue money after the demand period may have passed

The offer brings relief before money arrives

A hypothetical director discovers that the company may have missed a statutory demand response period. A relative offers to lend enough money to pay the creditor. The director immediately tells staff the problem is solved. Before relying on that offer, obtain urgent legal advice and establish the proposed funding's amount, conditions, timing and availability. A supportive conversation is not cleared company cash.

Explain the current legal position to the adviser

Provide the demand, delivery evidence and any later court documents. Tell the lawyer about the offer without presenting it as completed funding. Ask what action is required now and what financial evidence is relevant. Do not postpone that advice until the relative finishes arranging the transfer, particularly where a proceeding or hearing may already be involved.

Understand that funding and procedure are separate questions

The Federal Court's guidance explains the possible consequences of an unsatisfied statutory demand and the role of solvency evidence in winding up proceedings. A proposed loan does not itself settle those procedural questions. Ask the lawyer how any actual funding affects the matter and what confirmation is needed before concluding that the creditor's position or the company's exposure has changed.

Source: Federal Court: Winding up proceedings based on an unsatisfied statutory demand

Clarify the proposed arrangement honestly

In the hypothetical example, the relative's offer may depend on selling an investment or receiving their own repayment. Record those dependencies rather than listing the money as immediately available. Ask appropriate advisers to consider the terms, authority and records for any loan. Do not pressure the relative to transfer funds without understanding the arrangement or imply that repayment is guaranteed.

Check the whole company position

Even if the proposed amount covers the demanding creditor, identify other debts and commitments for the financial review. Avoid presenting payment of one amount as proof that every obligation can be met. If funding is received, retain the bank record and the approved transaction documentation. Keep estimates and expectations separate from evidence of money actually available to the company.

Confirm the effect through the legal process

Follow the lawyer's advice about payment, communication and any continuing court requirements. CRP can help organise the company's cash information for that discussion. The useful outcome is a supported decision based on verified funding and the actual proceeding, rather than allowing an informal rescue offer to interrupt the urgent response.