Setting aside statutory demands – the requirement to serve a “copy” of the application

A failure to comply with the strict requirements of s 459G of the Corporations Act 2001 (Cth) may have substantial adverse consequences for a company the subject of a creditor’s statutory demand. An example of this can be seen in Adhesive Pro Pty Ltd v Blackrock Supplies Pty Ltd where it was held that a copy of the company’s application to set aside a statutory demand had not been served on the creditor within the 21 day period as required by s 459G(3)(b) and that, therefore, the Court had no jurisdiction to hear the application. The company’s loss of its right to contest the validity of the statutory demand was a result of delay by the registry staff within the Court in processing the company’s application and supporting affidavits and providing sealed copies of these documents. Read about the case here.