The applicant (BPC) is a joint venture vehicle. Due to certain conduct of some of the JV parties (R) giving rise to an “event of default” under the JV agreement, the other JV party (CMC) was entitled to buy out the R parties’ interest. During the valuation of the JV interest, R served a statutory demand on BPC seeking repayment of money which R asserted it had loaned to BPC.
BPC applied to have the statutory demand set aside under section 459G of the Corporations Act 2001 (Cth) on the basis that there was “some other reason” to do so under section 459J(1)(b) of the Act. CMC sought leave pursuant to section 237 of the Corporations Act 2001 (Cth) to bring the proceeding on behalf of BPC’s name. The statutory demand was set aside.
Oliver Cook (with G Handran KC) appeared for the applicant, instructed by Carter Newell.
The judgment is published here.