Corporations Act 2001
(a) that there is a genuine dispute between the company and the respondent about the existence or amount of a debt to which the demand relates;
(b) that the company has an offsetting claim. 459H(2) [ Calculation of substantiated amount]
The Court must calculate the substantiated amount of the demand in accordance with the formula:
Admitted total - Offsetting total
(a) the admitted amount of the debt; or
(b) the total of the respective admitted amounts of the debts;
as the case requires, to which the demand relates.
(a) if the Court is satisfied that the company has only one offsetting claim - the amount of that claim; or
(b) if the Court is satisfied that the company has 2 or more offsetting claims - the total of the amounts of those claims; or
(c) otherwise - a nil amount. 459H(3) [ Substantiated amount less than statutory minimum]
If the substantiated amount is less than the statutory minimum, the Court must, by order, set aside the demand.459H(4) [ Substantiated amount equal to or greater than statutory minimum]
(a) varying the demand as specified in the order; and
(b) declaring the demand to have had effect, as so varied, as from when the demand was served on the company. 459H(5) [ Definitions]
In this section:
(a) if the Court is satisfied that there is a genuine dispute between the company and the respondent about the existence of the debt - a nil amount; or
(b) if the Court is satisfied that there is a genuine dispute between the company and the respondent about the amount of the debt - so much of that amount as the Court is satisfied is not the subject of such a dispute; or
(c) otherwise - the amount of the debt.
means a genuine claim that the company has against the respondent by way of counterclaim, set-off or cross-demand (even if it does not arise out of the same transaction or circumstances as a debt to which the demand relates).
This section has effect subject to section 459J.
[ CCH Note: There is no section 459I.]