Statutory demands – setting aside under s 459G – what is a ‘genuine’ dispute or offsetting claim?

This article by my colleague Carrie Rome-Sievers is a very succinct summary of the current principles governing a genuine dispute for statutory demands, recommended reading if you are preparing an application or defending one.

Carrie Rome-Sievers, Barrister

When a company is served with a statutory demand it may apply to Court to set it aside under s 459GCorporations Act 2001 (Cth) (see also s 459J). Where the ground for the application is that the company disputes that it owes the debt, or has an offsetting claim, s 459H requires that this be genuine (see s 459H(1) and the definition of ‘off-setting’ claim in s 459H(5)). So – when will an alleged dispute or off-setting claim be accepted as genuine? Or what should be pointed to as demonstrating that it is not?

Practitioners will in some cases quickly form a preliminary view on this based upon the old ‘smacks of recent invention’ hallmark. Certainly that preliminary view may be borne out on closer examination, as was the case in a Court of Appeal decision in which I appeared some years ago – Rescom Asia Pacific…

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1 thought on “Statutory demands – setting aside under s 459G – what is a ‘genuine’ dispute or offsetting claim?

  1. documentaryevidence

    I tweeted a link to that for you and Carrie

    Regards,

    Stephen Warne | Barrister Dever’s List | Clerk’s phone: 9225 7999 warne@vicbar.com.au

    Dawson Chambers | Level 4 | 405 Little Bourke St 9229 5040 | 04 0848 0848

    My blog: http://www.lawyerslawyer.net

    liability limited by a scheme approved under professional standards legislation

    From: Mark McKillop Barrister Date: Thursday, 7 October 2021 at 4:23 pm To: stephenwarne@netspace.net.au Subject: [New post] Statutory demands – setting aside under s 459G – what is a ‘genuine’ dispute or offsetting claim? Mark McKillop posted: “This article by my colleague Carrie Rome-Sievers is a very succinct summary of the current principles governing a genuine dispute for statutory demands, recommended reading if you are preparing an application or defending one. “

    Reply

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