Collins Motor Corporation Ltd v McVeigh [1997] FCA 1362

FEDERAL COURT OF AUSTRALIA CORPORATIONS - statutory demand - application to set aside - application by incumbent director - alleged indebtedness for consultancy services and director's fees - shareholders previously rejected payment of fees - matter again to be put to shareholders - whether substantial injustice unless demand set aside or some other reason why should be set aside - whether genuine dispute as to existence of debt. Corporations Law ss 243F(1)(a), 243H(1), 243Q, 459C(2), 459E, 459G, 459H, 459J, 459P(1)(d), 459P(2) Federal Court Rules 1976 (Cth), O 71, r 36B Chadwick Industries (South Coast) Pty Limited v Condensing Vaporisers Pty Ltd (1994) 13 ACSR 37 followed.

COLLINS MOTOR CORPORATION LTD (ACN 008 924 570) v VICTOR JAMES MCVEIGH NG 3263 of 1997 R D NICHOLSON J PERTH 24 NOVEMBER 1997

LIMITED DISTRIBUTION IN THE FEDERAL COURT OF AUSTRALIA

VICTORIAN DISTRICT REGISTRY NG 3263 of 1997

BETWEEN: COLLINS MOTOR CORPORATION LIMITED (ACN 008 924 570)

Applicant

AND: victor james MCVEIGH

Respondent

JUDGE: R D NICHOLSON J

DATE OF ORDER: 24 NOVEMBER 1997

WHERE MADE: PERTH

THE COURT ORDERS THAT: 1. The Statutory Demand made under Section 459E of the Corporations Law dated 5 November 1997 and served upon the Applicant on or about 5 November 1997 be set aside. 2. The Respondent pay the Applicant's costs as taxed by the Court. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

LIMITED DISTRIBUTION IN THE FEDERAL COURT OF AUSTRALIA

DISTRICT REGISTRY Ng 3263 of 1997

BETWEEN: COLLINS MOTOR CORPORATION LIMITED (ACN 008 924 570)

Applicant

AND: VICTOR JAMES MCVEIGH

Respondent

JUDGE: R D NICHOLSON J

DATE: 24 November 1997

PLACE: PERTH

REASONS FOR JUDGMENT (EX TEMPORE) HIS HONOUR: This is an application under section 459G of the Corporations Law for an order setting aside a statutory demand served on the applicant company ('the company'). The statutory demand in question was issued by the respondent who remains a director of the company and was until recently its Chairman. The statutory demand seeks payment by the applicant of $284,000 calculated as follows: Fees claimed by the respondent for the provision of consultancy services to the applicant $140,000 Director's fees claimed by the respondent for the period ended 30 June 1997 $144,000 ____________ Total $284,000