Commonwealth Consolidated Legislation

CORPORATIONS LAW- SECT 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.

(5)

A demand under this section may relate to a liability under any of the following provisions of the Income Tax Assessment Act 1936:

(a)

section 221F (except subsection 221F(12)), section 221G (except subsection 221G(4A)) or section 221P;

(b)

subsection 221YHDC(2);

(c)

subsection 221YHZD(1) or (1A);

(d)

subsection 221YN(1);

(e)

section 222AHA;

even if the liability arose before the commencement of this section.

(6)

Subsection (5) is to avoid doubt and is not intended to limit the generality of a reference in this Law to a debt.