A CSD is a technical letter of demand, issued under Section 459E of the Corporations Act 2001 (Cth). It may be issued against a company in circumstances where the issuing creditor believes that there is no dispute in relation to the debt owed to it by the debtor company.

A creditor of a company can make an application to the court for orders winding up the company if it is insolvent. The most common basis for such an application is that the company has failed to comply with a Creditor’s Statutory Demand