Isaco Pty Ltd v Davey

The case involved Isaco Pty Ltd, a company in liquidation, and nine individual applicants who were jointly and severally liable for debts owed by the company. The applicants sought to set aside statutory demands issued under section 459J of the Corporations Act 2001 (Cth). The applicants argued that they had a real prospect of fully satisfying the debts owed by the company. The matter was heard in the Federal Court of Australia.

The central legal issues in the case were whether the application to set aside the statutory demands was valid under section 459G of the Corporations Act and whether the applicants had a real prospect of satisfying the debts owed by the company. The court had to determine whether the applicants had standing to bring the application and whether they had demonstrated that there was a real prospect of satisfying the debts.

The court found that the application was valid under section 459G, as the applicants were all jointly and severally liable for the debts. The court further held that the applicants had a real prospect of satisfying the debts owed by the company, as they had provided evidence of funds that could be used to pay off the debts. The court noted that the applicants had demonstrated a willingness to use those funds to satisfy the debts and that there was no evidence to suggest that the funds would not be available when needed. The court therefore granted the application and set aside the statutory demands.

The court's decision provides guidance on the requirements for bringing an application to set aside statutory demands under section 459G of the Corporations Act. The case highlights the importance of demonstrating a real prospect of satisfying the debts owed by the company and the need for applicants to provide evidence of funds that can be used to pay off the debts. The decision also confirms that jointly and severally liable parties have standing to bring an application under section 459G.