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It is trite law that a director of a company should avoid placing him or herself in a position where his or her duty to the company conflicts with his or her personal interest. What is harder to understand is how such principles are applied in particular circumstances

In the matter of Smith & Young Pty Ltd [2016] NSWSC 1081 the Plaintiff attempted to windup the Defendant company on the basis of a presumption as to insolvency for failing to respond to a Statutory Demand.

In the matter of Broadspectrum (Australia) Pty Ltd v Centauri Business Services Pty Ltd [2016] NSWSC 1045 there was an application by "Broadspectrum" to set aside, under s 459G to the Corporations Legislation, a statutory demand made by "Centauri". Essentially, Broadspectrum's case was that Centauri demanded payment under 4 invoices in circumstances where 3 had been paid and the 4th invoice was not payable.