Non-compliance with a statutory demand is the most common way to prove insolvency.
The recent decision of the Supreme Court of Victoria in A G Coombs Pty Ltd v M & V Consultants Pty Ltd (in liq)  VSC 468 illustrates the issues faced by the recipient of a statutory demand who disputed the debt on which the demand was based. While it was argued that they were unquestionably solvent, the recipient failed to make an application to have the statutory demand set aside within the 21-day time limit.
MST Lawyers’ previous updates on the Unfair Contract Terms provisions in the Australian Consumer Law highlight the Australian Competition & Consumer Commission’s focus on the UCT laws.
A recent speech by Mr Rod Sims, chair of the ACCC, indicates there may be a further focus and crackdown in relation to the UCT laws. Small businesses and financial services providers will need to be increasingly vigilant in ensuring their standard form contract do not contain unfair terms.
In business, it is common practice to give some customers the ability to pay for what they buy at a later date, in other words, giving them credit. Sadly, it is also not uncommon for some customers to refuse or become unable to pay debts.
This article details how you can protect yourself when dealing with creditors and maximise your chance of recovering unpaid debts.