Companies regularly trade one business using multiple corporate entities with different corporate names. Creditors issuing a statutory demand to companies such as these should always ensure that they issue the demand to the correct corporate entity.
This scenario was considered in the decision of Product People (International) Pty Limited v Box Seat Company Pty Limited (in liquidation) (No 2)  FCA 1437.
In this matter, the debtor traded using the names Product People and Product People International.
Box Seat Company Pty Limited was a creditor of Product People but not Product People International. Despite this, Box Seat issued a creditor’s statutory demand to Product People International. Product People International applied to the Court to set aside the demand on the basis of a genuine dispute, namely that Box Seat was not a creditor of Product People International.
The Court determined that a genuine dispute existed and that the demand was issued against the incorrect entity. The demand was set aside and costs were awarded in favour of Product People International.
is a timely reminder to creditors to properly identify the debtor when issuing
a creditor’s statutory demand and strictly comply with the Corporations Act 2001.
 Box Seat’s liquidators.