In commercial contracts dispute as to payment, or failure to pay may result in a party to the contract being served with a Creditors Statutory Demand for payment.
Section 459E of the Corporations Act 2001 (Cth) (Corps Act) provides that a creditor may serve a statutory demand on a company (Stat Demand) provided that the amount of the debt is more than the statutory minimum ($2000) and that it complies with the Rules of the respective state court or the rules of the Federal Court. Further section 459E (3)(a) provides that the Stat Demand must be accompanied by an affidavit that states that the debt is due and payable by the Company. [Read more…]
