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ARTICLE · 09 DECEMBER 2008

Statutory Demand Debtor Gets Off On A ´Technicality´

Cooper Grace Ward
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A recent decision of the Chief Justice of Queensland illustrates how statutory demands can be set aside for what might seem to be relatively minor errors.

AustraliaCorporate/Commercial Law
Rocco Russo
Rocco Russo
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A recent decision of the Chief Justice of Queensland illustrates how statutory demands can be set aside for what might seem to be relatively minor errors.

In Rapcivic Contractors Pty Ltd v Mapol Industries Pty Ltd [2008] QSC 310, Mapol allegedly provided painting services to Rapcivic valued at over $1.8 million. Mapol served a statutory demand under the Corporations Act 2001 (Cth) demanding payment of this money.

Rapcivic asked the Court to set aside the demand because it did not comply with the requirements of the Corporations Act 2001 (Cth).

As there was no judgment, the statutory demand needed to be accompanied by an affidavit stating that the amount claimed in the demand was due and payable by the debtor company. Rule 5.2 of the Corporations Proceedings Rules requires the accompanying affidavit to be in accordance with the prescribed form 7 and state the matters mentioned in the form.

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