If you provide goods or services To a small proprietary company Then you and that company Have entered into an agreement or a contract The contract can be written or verbal If the company does not pay you for your goods
or services then you and that company Have a dispute over an unpaid debt In this instance the companies unpaid debt
is owed to you Well a breach of a contract Is not a criminal matter and a contract Is only enforceable by the parties to a contract The parties should try resolve the dispute
between themselves And if they cannot do so They should take the matter To court for a resolution. If a small proprietary company cannot pay
its debts This may be a sign that it is experiencing Financial difficulties Or an insolvency practitioner has been
appointed But in any event a dispute over an unpaid
debt Is still a contractual matter That the parties need to resolve or must take
to court Firstly you should raise the issue with the
company directly And review ongoing trading arrangments You can also search the ASIC website To see if another creditor of the company has taken winding up action Or if an insolvency practitioner has been
appointed If one has been appointed we recommend that
you contact them And you may also wish to obtain your own legal
advice If you are unsure where to start We recommend you contact the law society in
your state or territory ASIC generally does not get involved in relation
to unpaid debts Nor will we intervene if a small proprietary
company Is experiencing financial difficulty This is because the options we have already
discussed Are more likely to result in creditors being
able to recover their money ASIC will generally only take action When there is a greater public benefit in
us doing so However if your unpaid debt relates To your entitlements as an employee Of a small proprietary company You may wish to look at our other clip on
employee entitlements