Statutory demands – The meaning of “debt” in s 459E of the Corporations Act 2001 (Cth)

Section 459E of the Corporations Act 2001 (Cth) permits the service of a creditor’s statutory demand on a company where the demand relates to a “debt” that is owing, due and payable by the company to the creditor. A creditor, therefore, cannot make demand for something that does not have the characteristics of a “debt” within the meaning of that section. The meaning of “debt” in the context of statutory demands has been considered by the courts in a number of cases over the years but most recently by the Supreme Court of Victoria in Meales Concrete Pumping Pty Ltd v Probuild Constructions (Aust) Pty Ltd.  Read about the case here.