Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p53
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 53/110)
Character Range: 287599–290190

a company is solvent.

"Division 2—Statutory demand

Creditor may serve statutory demand on company

  "459E.(1) 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.

  "(2) 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.

"(3) 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.

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

When company taken to fail to comply with statutory demand

"459F.(1) If, as at the end of the period for compliance with a statutory demand, the demand is still in effect and the company has not complied with it, the company is taken to fail to comply with the demand at the end of that period.

  "(2) The period for compliance with a statutory demand is:

     (a) if the company applies in accordance with section 459G for an order setting aside the demand:

         (i) if, on hearing the application under section 459G, or on an application by the company under this paragraph, the Court makes an order that extends the period for compliance with the demand—the period specified in the order, or in the last such order, as the case requires, as the period for such compliance; or

          (ii) otherwise—the period beginning on the day when the demand is served and ending 7 days after the application under section 459G is finally determined or otherwise disposed of; or

   (b) otherwise—21 days after the demand is served.

"Division 3—Application to set aside statutory demand

Company may apply