Misleading and deceptive conduct in the sale of a business

Disputes regarding falsified figures from the sale of a business are commonplace in commercial litigation. The allegation is frequently heard that a vendor has misrepresented the amount of sales and profits from their business in order to “fatten the pig for market”. The Victorian Court of Appeal recently delivered a decision in H & Q Cafe Pty Ltd v Melbourne Cafe Pty Ltd & Anor [2023] VSCA 200 which contains important learnings for those involved in sale of business disputes.

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Statutory demands: Court of Appeal affirms principles for setting aside in recent cases

This post considers two recent cases in the Victorian Court of Appeal where applications to set aside statutory demands pursuant to section 459G of the Corporations Act were appealed: 

1) Bendigo and Adelaide Bank Ltd v Pekell Delaire Holdings Pty Ltd  [2017] VSCA 5

2) Go Connect Ltd v Sino Strategic International Ltd (in Liq) [2016] VSCA 315

Both cases affirm the principles applicable in applications to set aside a statutory demand. 

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