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Australia liquidation voluntary and compulsoryunconscionability

Stubbings v Jams 2 Pty Ltd

(2022) 276 CLR 233
JurisdictionAustralia
CourtHigh Court of Australia
Year2022
StatusBinding authority

Summary

HCA held that a creditor's statutory demand under s.459E Corporations Act cannot be set aside merely because the company disputes the debt; a genuine dispute on substantial grounds must be shown.

Key Principle

The HCA held that a creditor's statutory demand under s.459E of the Corporations Act cannot be set aside merely because the company disputes the debt; the court must be satisfied there is a genuine dispute on substantial grounds.

Area of Law

insolvency

Related Cases

Stubbings v Jams 2 International Pty Ltd (2022) 399 ALR 409

In unfair preference claims, payments and supplies within a continuing business relationship are assessed as a whole under the running account principle, not individually.

Vince v ASIC [2021] FCAFC 69

Director disqualification upheld where director failed to maintain adequate books and records, constituting misconduct in management of insolvent company.

Badenoch Integrated Logging Pty Ltd v Bryant (2021) 272 CLR 478

Directors incur personal liability under s.588G Corporations Act for insolvent trading where there are reasonable grounds to suspect insolvency at the time debts are incurred.

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