CORPORATIONS LAW- SECT 459H Determination of application where there is a dispute or offsetting claim

Commonwealth Repealed Acts

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This legislation has been repealed.

CORPORATIONS LAW- SECT 459H

Determination of application where there is a dispute or offsetting claim

(1): This section applies where, on an application under section 459G, the Court is satisfied of either or both of the following:

(a): that there is a genuine dispute between the company and the respondent about the existence or amount of a debt to which the demand relates;
(b): that the company has an offsetting claim.

(2): The Court must calculate the substantiated amount of the demand in accordance with the formula:

sub> IMG SRC="CorpLawVer202.gif">/sub> where:

Admitted total means:

(a): the admitted amount of the debt; or
(b): the total of the respective admitted amounts of the debts;

as the case requires, to which the demand relates.

Offsetting total means:

(a): if the Court is satisfied that the company has only one offsetting claim—the amount of that claim; or
(b): if the Court is satisfied that the company has 2 or more offsetting claims—the total of the amounts of those claims; or
(c): otherwise—a nil amount.

(3): If the substantiated amount is less than the statutory minimum, the Court must, by order, set aside the demand.
(4): If the substantiated amount is at least as great as the statutory minimum, the Court may make an order:

(a): varying the demand as specified in the order; and
(b): declaring the demand to have had effect, as so varied, as from when the demand was served on the company.

(5): In this section:

admitted amount, in relation to a debt, means:

(a): if the Court is satisfied that there is a genuine dispute between the company and the respondent about the existence of the debt—a nil amount; or
(b): if the Court is satisfied that there is a genuine dispute between the company and the respondent about the amount of the debt—so much of that amount as the Court is satisfied is not the subject of such a dispute; or
(c): otherwise—the amount of the debt.

offsetting claim means a genuine claim that the company has against the respondent by way of counterclaim, set-off or cross-demand (even if it does not arise out of the same transaction or circumstances as a debt to which the demand relates).

respondent means the person who served the demand on the company.

(6): This section has effect subject to section 459J.

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