This week’s TGIF considers the recent Supreme Court decision of Re ML & NB Pty Ltd [2025] VSC 444. It concerns the extent to which a plaintiff can rely on a statutory demand issued by a supporting creditor to satisfy the presumption of insolvency.
Key takeaways
- To secure the benefit of a presumption of insolvency in a winding up application, it is crucial to pay strict attention to evidence of effective service of a statutory demand.
- Ineffective service of a statutory demand may not affect the validity of a winding up application, but it can shift the evidentiary basis and require the creditor to prove actual insolvency.
- In certain circumstances, a plaintiff can rely on non-compliance with a statutory demand issued by another…