Elliott Harvey Securities Ltd

 31 July, 2015

The recent Supreme Court decision in Elliott Harvey Securities Ltd v Raynel & Anor is a very timely reminder of the importance of ensuring that an application for setting aside a creditor’s statutory demand within the prescribed time period specified in Section 459G of the Corporations Act 2001 (i.e. 21 days after being served) will be strictly enforced.

Further, in circumstances where “(…the s 459G application) was doomed to failure and that continuing the application should be regarded as proceeding in wilful disregard of the known facts or clearly established law” solicitors can become personally liable for costs orders.

You can access the decision by clicking here.

Whilst not involved in this case, with a background in insolvency, Steven Ponsonby from Forensic Accounting QLD is often called upon to provide an expert opinion in regards to a range of matters associated with statutory demands, including quantification of loss and damage and solvency reports.

Steven Ponsonby is a Chartered Accountant FCA, a Certified Fraud Examiner CFE and Insolvency Practitioner RITP and is the founding Director of Forensic Accounting Pty Ltd, a leading independent forensic accounting practice, providing forensic accounting services and expertise to a broad spectrum of clients across Australia.