CORPORATIONS ACT 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.4 - WINDING UP IN INSOLVENCY  

Division 2 - Statutory demand  

SECTION 459E   CREDITOR MAY SERVE STATUTORY DEMAND ON COMPANY  

459E(1)   [ Power to serve demand]  

A person may serve on a company a demand relating to:


(a) a single debt that the company owes to the person, that is due and payable and whose amount is at least the statutory minimum; or


(b) 2 or more debts that the company owes to the person, that are due and payable and whose amounts total at least the statutory minimum.

459E(2)   [ Contents of demand]  

The demand:


(a) if it relates to a single debt - must specify the debt and its amount; and


(b) if it relates to 2 or more debts - must specify the total of the amounts of the debts; and


(c) must require the company to pay the amount of the debt, or the total of the amounts of the debts, or to secure or compound for that amount or total to the creditor's reasonable satisfaction, within 21 days after the demand is served on the company; and


(d) must be in writing; and


(e) must be in the prescribed form (if any); and


(f) must be signed by or on behalf of the creditor.

459E(3)   [ Demand to be accompanied by affidavit]  

Unless the debt, or each of the debts, is a judgment debt, the demand must be accompanied by an affidavit that:


(a) verifies that the debt, or the total of the amounts of the debts, is due and payable by the company; and


(b) complies with the rules.

459E(4)   [ Assignee may make demand]  

A person may make a demand under this section relating to a debt even if the debt is owed to the person as assignee.

459E(5)   [ Demand relating to income tax liability]  

A demand under this section may relate to a liability under any of the following provisions of the Income Tax Assessment Act 1936 :


(aa) former section 220AAE, 220AAM or 220AAR;


(a) former section 221F (except subsection 221F(12)), former section 221G (except subsection 221G(4A)) or former section 221P;


(b) former subsection 221YHDC(2);


(c) former subsection 221YHZD(1) or (1A);


(d) former subsection 221YN(1);


(e) section 222AHA;

and any of the provisions of Subdivision 16-B in Schedule 1 to the Taxation Administration Act 1953 , even if the liability arose before 1 January 1991.

459E(6)   [ Generality of reference to a debt]  

Subsection (5) is to avoid doubt and is not intended to limit the generality of a reference in this Act to a debt.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.