The Court dismissed applications to set aside statutory demands for director loan account debts recorded as current liabilities in company financial statements, holding that the applicants' evidence — consisting of assertions by the external accountant and sole director that the amounts were equity contributions, gifts, loans not yet due, or gave rise to a resulting trust — lacked sufficient factual particularity and was contradicted by the companies' own financial records, the deceased's conduct, estate documents, and the prima facie evidential value of the financial statements under s 1305 of the Corporations Act. The Court emphasised that a genuine dispute requires more than bare assertion of an alternative characterisation; it requires an evidential foundation addressing the terms of the relevant transactions, and the failure to adduce available contemporaneous accounting records (journal entries, source documents, ledger narratives) was fatal. The Court also held that the Administrator's issuance of statutory demands without the co-executor's consent was not an abuse of process, given the co-executor's conflict of interest as sole director and majority shareholder of the debtor companies.
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