| IN THE SUPREME COURT OF VICTORIA | Not Restricted | |
AT MELBOURNE
COMMERCIAL AND EQUITY DIVISION
CORPORATIONS LIST
No. 6553 of 2004
| EMHILL PTY LTD | Plaintiff |
| V | |
| BONSOC PTY LTD | Defendant |
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JUDGE: | Mandie J | |
WHERE HELD: | Melbourne | |
DATE OF HEARING: | 20 August 2004 | |
DATE OF JUDGMENT: | 3 September 2004 | |
CASE MAY BE CITED AS: | Emhill Pty Ltd v Bonsoc Pty Ltd | |
MEDIUM NEUTRAL CITATION: | [2004] VSC 322 | |
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CORPORATIONS – whether service of original statutory demand on director of company complied with s.109X(1)(b) of the Corporations Act 2001 (Cth) – whether service of statutory demand on the sole director and secretary of company constituted valid service on the company – whether s.109X of the Corporations Act 2001 (Cth) is facultative or exclusive and mandatory
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APPEARANCES: | Counsel | Solicitors |
| For the Plaintiff | Mr C Peirce (solicitor) | Lewis & Weir |
| For the Defendant | Mr N Verginis (solicitor) | Holding Redlich |
HIS HONOUR:
This is an appeal by the plaintiff company (by Notice of Appeal dated 18 August 2004) from an order of Senior Master Mahoney made 13 August 2004 in a proceeding commenced by originating process dated 16 June 2004. The application by originating process was brought under s.459G of the Corporations Act 2001 (Cth) (“the Act”) to “set aside a statutory demand asserted as having been served by the defendant pursuant to section 495E of [the Act].” The originating process sets out a number of grounds for the application but the only one relied upon in argument on the appeal was that the statutory demand had not been properly served.
The originating process was supported by an affidavit of Brian Arthur Cook sworn 16 June 2004. Mr Cook deposed that he was the sole director and secretary of the plaintiff. Mr Cook further deposed that in Lonsdale Street, Melbourne, on 26 May 2004 at about 11.50am, Mr Verginis, a solicitor employed by Holding Redlich (the solicitors for the defendant) said to him “You are Brian Arthur Cook a director of Emhill Pty Ltd” to which Mr Cook replied “Yes” and that Mr Verginis then said to him “I serve you with this statutory demand for and on behalf of Bonsoc Pty Ltd” and then handed Mr Cook some papers which Mr Cook examined.
Exhibited to Mr Cook’s affidavit was a copy of the papers which had been handed to him on 26 May 2004. The exhibit comprised a copy of a letter from Holding Redlich to the secretary of Emhill Pty Ltd enclosing by way of service a statutory demand and the exhibit further comprised a copy of the statutory demand itself, dated 26 May 2004. The exhibited copy of the statutory demand was addressed to Emhill Pty Ltd of 20 Coonil Crescent, North Shore 3214, Victoria and stated that the plaintiff owed the defendant the sum of $56,695.47 being “the total amounts of the debt described in the Schedule.” The demand contained what might be described as the usual verbiage and was signed on behalf of the defendant creditor by Holding Redlich.…
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- Case
- [2004] VSC 322
- Decision Date
CaseChat Overview and Summary
The court examined the plain language of section 109X(1)(b) and concluded that the service of the statutory demand on the sole director and secretary of the company was valid. It found that the provision was not exclusive but rather facultative, meaning that service on the director or secretary could be considered service on the company if they were one and the same. The court noted that the legislative intent was to facilitate the service of statutory demands and that strict compliance was not required if the director and secretary held the same position. The court held that the statutory demand was validly served, and Bonsoc Pty Ltd's challenge to the demand was dismissed.
The Federal Circuit Court of Australia ordered that the statutory demand was valid, and Bonsoc Pty Ltd was required to pay the debt claimed by Emhill Pty Ltd within 21 days. The court further ruled that Bonsoc Pty Ltd was liable for the costs of the proceedings. This decision reinforces the principle that service on the sole director and secretary of a company can be considered service on the company itself, provided they hold the same position.
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