CONSIDERATION
62 There is no real dispute about the facts relevant to the separate question.
63 The authorities referred to by the parties are of assistance only in so far as they illuminate the statutory regime in its present iteration. The starting, and finishing, point must be the text of the relevant provisions in the context of the legislative scheme. The relevant principles which inform the task of statutory construction require consideration of the text, context and purpose: see, in particular, s 15AA of the Acts Interpretation Act; Project Blue Sky Inc v Australian Broadcasting Authority [1998] HCA 28; 194 CLR 355 at 381 [69] (McHugh, Gummow, Kirby and Hayne JJ); Federal Commissioner of Taxation v Consolidated Media Holdings Ltd [2012] HCA 55; 250 CLR 503 at 519 [39] (the Court); Certain Lloyd's Underwriters v Cross [2012] HCA 56; 248 CLR 378 at 389 - 39 [25] - [26] (French CJ and Hayne J); SZTAL v Minister for Immigration and Border Protection [2017] HCA 34; 262 CLR 362 at 368 [14] (Kiefel CJ, Nettle and Gordon JJ); Construction, Forestry, Maritime, Mining and Energy Union v Australian Building and Construction Commissioner [2020] FCAFC 192; 282 FCR 1 at 5 [4] (Allsop CJ).
64 Section 459G(3) of the Corporations Act requires that within 21 days a copy of the application and supporting affidavit must be filed with the Court and served on the person who served the demand on the company. Here, the person who served the statutory demand on Bioaction was Mr Ogborne, the creditor.
65 The statutory demand specified that Mr Ogborne's address for service of copies of any application and affidavit was CFC Lawyers, Level 1, Oro House, 39 Bay Street, Double Bay NSW 2028. That the address of his lawyers was provided as Mr Ogborne's address for service was required by s 459E(2)(e) of the Corporations Act and Form 509H which expressly stipulates that if solicitors are acting for the creditor, the address of the solicitors must be given as the address of the creditor for service.
66 The requirement in s 459G(3)(b) to serve the documents "on the person who served the demand" is met where the documents are served at the address for service specified in the statutory demand: see [39] - [40] above. In World Square Realty at [16], Brereton J said:
…The only purpose for providing for an address for service is to identify a place at which a s 459G demand could be served. In Zipvac Australia Pty Limited v James [2011] NSWSC 392, Barrett J stated, albeit obiter, that the service of the originating process and supporting affidavit at the address specified for service on the statutory demand must be regarded as good service, even if it was the address of the creditor's solicitor and not the creditor itself [see also Newsnet Pty Limited v Patching [2011] NSWSC 690; The Site Foreman Pty Limited v Brand [2011] NSWSC 451; Woodgate v Garard Pty Limited [2010] NSWSC 508].
67 Personal service of the s 459G originating documents on the creditor or the creditor's nominated agent (as nominated in paragraph 6 of the statutory demand) is not required for the purposes of s 459G(2) and (3): see [40] above.
68 Mr Ogborne maintained a submission that personal service is required by reason of the application of the Corporation Rules and the Rules because the s 459G application is an originating process of the Court. Mr Ogborne's written submission was as follows (footnotes omitted):
17. By rule 2.2 of the [Corporations Rules], an application permitted to be made by the Act must be made to the Federal Court by filing an originating process. The [Rules] apply to a proceeding commenced under the Act to the extent that they are relevant and not inconsistent with the Corporations Rules. Rule 2.7(1) of the Corporations Rules requires the plaintiff to serve a copy of the originating process and any supporting affidavit on each defendant. Rule 8.06 of the [Rules] requires an applicant to serve a copy of the originating application personally on each respondent. Rule 10.01 of the [Rules] provides that a document that is to be served personally on an individual must be served by leaving the document with that individual. The Court Rules make two limited provisions for an originating application to be served on an individual other than personally. Rule 10.22 provides that a lawyer may accept service if the lawyer has such authority and endorses a note on a copy of the document that the lawyer accepts service of the document for the respondent. Rule 10.28 provides that, if a respondent has agreed that an originating application may be served in a way or place mentioned in the agreement, then the application may be served in accordance with the agreement. There is no suggestion that either of these rules apply. As a result, the Application was not served in accordance with the Corporations Rules or the [Rules].
18. The rules as to service of documents that are not required to be served personally are contained in Division 10.3 of the [Rules]. Rule 10.31 provides that a document that is not required to be served personally may be served electronically if the person has filed a notice authorising service by electronic communication or may be served at a party's lawyer's email address if the party is represented by a lawyer who has filed a notice of address for service that conforms with rule 11.01. As at 3 February 2022, prior to any service of the originating application, neither the Defendant nor his solicitor had filed any notice of address for service. Hence, there can be no suggestion that the [Rules] authorised service of the Application by email.
69 The difficulty with this submission is that it is contrary to binding authority, namely Rochester Communications at 589 (Beaumont J) and 599 - 600 (Moore J) which approved Lander J's conclusion in Players at 921 that notwithstanding that the s 459G application is an originating process of the Court, the court rules do not apply and therefore personal service on a creditor who is a natural person is not required. Where, as here, the statutory demand nominated a place at which any s 459G application may be served, the requirements of the section were met when the documents are delivered to and received at that address: Players at 921 (Lander J); Howship Holdings at 544 - 545 (Young J); SGR Pastoral at [17], [21] (Bowskill J); Newsnet at 111 - 113 [23]-[30] (White J); World Square Realty at [16] - [17] (Brereton J); The Site Foreman at [26] (Barrett J).
70 In any event, Mr Ogborne appeared to accept that "recent first instance decisions tend to the view that the requirement in s 459G(3)(b) to serve the application and supporting affidavit "on the person who served the demand"" will be met where those documents are served at the address for service specified in the statutory demand. In this context, counsel for Mr Ogborne, focussed on email as the means by which the documents were, to use a neutral word, delivered to the nominated address and submitted:
…Mere receipt of the (illegible) electronic communication at the nominated address does not constitute service of the document at the nominated address. In the case of a document that has been scanned and converted into a PDF data file, which data file has been attached to an email message, the document is not served at a nominated address for the purposes of s 459G merely by the (illegible) electronic communication being received and stored on a remote server or downloaded from the server to a computer at the nominated address. The electronic data sent with the email cannot be read. A document sent as a PDF data file attached to an email message is not served at a nominated address for the purposes of s 459G until it has been converted from (illegible) electronic data by being accessed on the receiver's computer with the use of a PDF reader application (like Acrobat Reader) and rendered into a complete and legible version of the document on a screen of a computer at the nominated address or printed as a hardcopy into a complete and legible copy of the document on a printer at the nominated address. In general terms, a PDF data file will be converted and rendered into a complete and legible version of the document on the screen of a computer on being opened from an email application.
71 Where personal service is not required, the means by which documents are served at a nominated address is immaterial, provided they arrive there: SGR Pastoral at [23] and the authorities cited therein.
72 With respect to service by email, after a comprehensive survey of the authorities, Bowskill J in SGR Pastoral concluded (footnotes omitted):
[37] In the case of service by email, in my view, what must be shown is that the electronic copy of the application and supporting affidavit was received, in a complete and legible form, at the address for service, within the prescribed time. That is, that the email was sent to an email address that belongs to the nominated agent for service …; that the email attaching the documents to be served actually arrived at the email address; and that the email and attached documents were capable of being opened and read (even if they were not opened and read until later).
[38] In this regard, I agree with and adopt White J's approach in Newsnet. To the extent that Austin J in Austar Finance is to be understood as articulating a requirement that service by email is not effective until the email is actually opened and the documents are read, I disagree and prefer the approach of White J, which is consistent with the general principles as to service, including as discussed by McMurdo J in Conveyor & General Engineering Pty Ltd v Basetec Services, that actual service does not require the recipient to read the document. However, as McMurdo J said, "it does require something in the nature of a receipt of the document".
[39] This is also consistent with the well-established principle, in the case of service by non-electronic means, that if hard copies of the documents are left at the nominated place for service on a particular day, even if that was by sliding an envelope containing the documents under a closed door (and even if that was after office hours), that would be effective service on the day of delivery.
[40] I can see no reason why the position should be any different, in the case of electronic copies of the documents received either by facsimile transmission or email.
73 I agree. In so doing, I am conscious that a different view was taken in the decisions of single judges of this Court referred to in [43] above but in circumstances where it does not appear that the Court was taken to the decision of the Full Court in Rochester Communications. In the circumstances of the present case, I do not think it is necessary to resolve the difference between the Newsnet and Opensoft lines of authority as to whether, as a matter of principle, electronic communication is permissible as a means of serving at the address nominated by the creditor for service for the purpose of s 459G in circumstances where an address for electronic communication is not expressly nominated. In my view, the same conclusion as reached by Bowskill J in SGR Pastoral, is now dictated by the amendments to relevant provisions made by the 2020 Reforms.
74 First, s 600G of the Corporations Act applies to any document that is required or permitted to be given to a person (the recipient) under Chapter 5 of the Corporations Act. Such documents may be given to the recipient by means of an electronic communication.
75 Section 459G is situated in Chapter 5. The word "document" is defined in s 9 of the Corporations Act. The PDF copies of the originating application and supporting affidavit are both documents. They are required or permitted to be served in the statutory period specified in s 459G in order to attract the jurisdiction of the Court. Prima facie, a document served under s 459G is a document that is required or permitted to be given to a person, namely the creditor, under Chapter 5 of the Corporations Act.
76 Mr Ogborne advances a submission that s 600G does not apply to s 459G because even though s 459G is in Chapter 5, to require a document to be given is different to requiring a document to be served under Chapter 5. I do not accept that submission for the following reasons.
77 Starting with the text, the Corporations Act does not define the word "serve". In the Macquarie Dictionary (online at 25 April 2022) 'serve' (def 28) is defined to include:
a. to make legal delivery of (a process or writ).
b. to present (a person) with a writ.
78 For the purpose of s 459G, service in the sense of legal delivery requires that the documents arrive at the nominated address within the statutory period: see [39] - [40], and [72] above. The plaintiff is required or permitted to give the documents to the creditor at the nominated address by reason of ss 459E(2)(d) and 459G(2) and (3), provisions which are found in Chapter 5 of the Corporations Act. I see no reason to exclude from the use of the more general word "given" the more particular meaning of the word "served" when what is comprehended for service in s 459G is the giving or delivery of a document at a designated address. On a plain reading of the text, the originating documents under s 459G are documents that satisfy the description of being required or permitted to be given to a person under Chapter 5.
79 Secondly, it is instructive to have regard to the legislative history, cognisant of the limitations on the use of such history: see Herzfeld and Prince at [8.240].
80 The immediate previous iteration of s 600G, which was in force from 23 June 2020 to 15 December 2020, expressly stipulated that the section applied only to a "notice, or other document" given or sent under specified provisions within Chapter 5 of the Corporations Act, of which s 459G was not one:
600G Electronic methods of giving or sending certain notices etc.
(1) This section applies if a person (the notifier) is authorised or required to give or send a notice, or other document, to a person (the recipient) under any of the following provisions:
(aa) paragraph 436DA(3)(a);
(a) paragraph 436E(3)(a);
(f) subsection 450A(3);
(g) paragraph 450B(a);
(h) paragraph 450C(b);
(i) paragraph 450D(b);
(l) paragraph 497(1)(a);
(m) paragraph 506A(2)(b);
(p) paragraph 568A(1)(b);
(s) subsection 579J(1);
(t) subsection 579J(2);
(u) subsection 579K(1);
(v) subsection 579K(2);
(w) subsection 579K(3);
(x) subsection 579K(4);
(y) a provision of Schedule 2 or the Insolvency Practice Rules.
81 Further, in the previous version of s 600G, the giving or sending by electronic method was only available where the recipient consented. "Document" was not defined in this version of the Corporations Act. "Notice" was defined in s 9 to include a circular or an advertisement.
82 The 2020 Reforms introduced a broad definition of document in s 9, which as noted above, was consistent with that in s 2B of the Acts Interpretation Act extending to information that is not in paper or material form.
83 The changes effected by the 2020 Reforms extended the operation of s 600G to any document (as broadly defined) that is required or permitted to be given to a person (the recipient) under Chapter 5 of the Corporations Act. Bioaction submits, and I accept, that the scope of the section has been expanded to capture an application made under s 459G.
84 That the intent of the 2020 Reforms was to enable electronic communication for the purpose of Chapter 5 inter alia is evident from the Explanatory Memorandum:
Summary of new law
5.2 Schedule 4 allows electronic communication to be used to give a document under the external administration provisions in Chapter 5 of the Corporations Act, the Insolvency Practice Schedule, Chapter 5 of the Corporations Regulations, the Insolvency Practice Rules or any other instrument made under Chapter 5.
…
85 Another expansive aspect of the 2020 Reforms was to remove the requirement for consent of the recipient as a condition of electronic communication under s 600G. In lieu thereof, two conditions were introduced which must be satisfied before a document can be given electronically. First, there must be a nominated electronic address. "Nominated electronic address" is defined to include in the situation where the addressee has not nominated an electronic address, an electronic address that the originator believes on reasonable grounds to be a current electronic address for the addressee for receiving electronic communications: s 9 of the Corporations Act. Secondly, a document can only be provided electronically if it is reasonable to expect, at the time the electronic communication is used, that the document would be readily accessible so as to be useable for subsequent reference and there is a nominated electronic address in relation to the recipient. The Explanatory Memorandum said:
5.16 The person providing the document does not need to satisfy the other conditions in section 9 of the [Electronic Transactions Act 1999 (Cth)]. Those conditions require the recipient to consent to the use of electronic means and comply with any requirements of the Commonwealth agency that is receiving the information. These conditions were not included as they would have imposed high regulatory costs on industry and been significantly more restrictive than the relief provided by the Determination.
86 Thirdly, Mr Ogborne's submission proceeds upon the premise that the requirement in s 459(3)(b) that an application must be "served" (as opposed to "given") is deliberate and plainly intended to enliven the requirements of service under applicable laws and rules of court. I reject that submission on the basis that it is contrary to authority, particularly that of the majority in Rochester Communications: see [40] above. Electronic communication under s 600G is facilitative not mandatory. Other means of service including those under the rules of court and facilitative provisions in other laws, such as s109X of the Corporations Act and s 28A of the Acts Interpretation Act, are available.
87 Finally, Mr Ogborne submits that no authority is given to support Bioaction's contention that s 600G should be construed to apply to service of an application under s 459G. That is so, but s 600G only came into effect in mid-December 2020, and neither party has located any decision in which s 600G as currently in force has been considered.
88 If I am wrong as to the application of s 600G to a document served under s 459G of the Corporations Act, then based on the authorities summarised at [39]-[40] above, I would have found that service by electronic communication was permissible.
89 Further, I would have been satisfied that even if s 600G did not apply to service under s 459G, the Mitchell email was nevertheless an electronic communication within the meaning of that term as defined in s 9 made for the purpose of effecting service under s 459G and accordingly, ss 105A and 105B apply to facilitate proof of when and where that email was received. In this regard I note that ss 105A and 105B are of general application and are situated in Chapter 1, Division 8 - Miscellaneous Interpretation Rules of the Corporations Act. I do not accept the submission that was advanced by Mr Ogborne that an email communication by which service is effected under s 459G is not an email communication that is "sent" and relevantly, "received".
90 Next, I turn to whether service was validly effected within time and at the nominated place by means of the Mitchell email. That is primarily a question of fact but the forensic exercise in establishing the time and place where the Mitchell email attaching PDF copies of the originating documents was received is assisted by the operation of the deeming provisions introduced by ss 105A and 105B of the Corporations Act. Sections 105A and 105B apply in relation to an electronic communication unless otherwise agreed between the originator and the addressee of the communication.
91 The rebuttable presumption in s 161 of the Evidence Act may similarly be available to establish the destination where and time at which the Mitchell email was received.
92 It is convenient to again extract the relevant operative deeming provisions that Bioaction relies on in respect of the Mitchell email, s 105A(4)-(6) provide:
(4) An electronic communication is received when the electronic communication becomes capable of being retrieved by the addressee at the addressee's nominated electronic address.
(5) It is to be assumed that an electronic communication is capable of being retrieved by the addressee when it reaches the addressee's nominated electronic address.
(6) Subsection (4) applies even though the place where the information system supporting an electronic address is located may be different from the place where the electronic communication is taken to have been received under section 105B.
93 The relevant nominated electronic address is that of Ms Fu's CFC email address and/or the CFC general email address. That is so, even though those addresses had not been nominated as an electronic address at which electronic communications could be received. That is because both are electronic addresses that Mr Mitchell acting for Bioaction believed on reasonable grounds to be a current electronic address for CFC Lawyers for receiving electronic communications. The reasonable grounds for Mr Mitchell's belief in that regard is established by the following evidence. Mr Ogborne has been represented from the beginning of the dispute by Ms Fu of CFC Lawyers. Bioaction is represented in the present proceedings by Mr Mitchell of MSD Law and was represented by another solicitor at an earlier point in time. The legal representatives of Bioaction and Mr Ogborne communicated with each other by email including in relation to the statutory demand in the period from 21 December 2021 to 3 February 2022. In those email communications, the legal representatives of Bioaction sent emails to CFC Lawyers using the Ms Fu's CFC email address and the CFC general email address. Ms Fu sent emails to Bioaction's legal representatives from her CFC email address. In those email communications, Ms Fu sent letters as attachments, using the firm's stationery which included the CFC general email address.
94 The Mitchell email was capable of being retrieved from the CFC Server connected to Ms Fu's CFC email address and the CFC general email address shortly after it was sent (that is, within the statutory period). That the nominated email addresses were supported by an external server is irrelevant: s 105A(6).The Mitchell email and the PDF copies of the originating documents were capable of being opened in legible and complete form from this time.
95 Proof of effective service does not require that there be proof that the documents were actually accessed or reviewed or even came to the attention of the addressee or anyone else. What matters is that they could have been had the addressee sought to do so: see Bowskill J in SGR Pastoral extracted above at [72]. The position is made clear by s 105A which does not impose any requirement for the electronic communication to have come to the notice of the recipient, focussing rather on the time it becomes capable of being retrieved. Section 105A is closely based on s 14A of the Electronic Transactions Act 1999 (Cth). However, an exception is that unlike s 14A of the Electronic Transactions Act, s 105A does not require the addressee to have become aware of the electronic communication.
96 The place where the Mitchell email was received by the CFC general mail address and Ms Fu's CFC email address respectively is deemed by s 105B(3)(b) and (c)(i) respectively to be the address of CFC Lawyers, which is the same address as is nominated in the statutory demand for service on Mr Ogborne: see [9] and [14] above.
97 Having regard to the deeming of the time and place of receipt of the Mitchell email by operation of ss 105A and 105B, it is not necessary to determine whether the rebuttable presumptions that arise under s 161 of the Evidence Act apply in the circumstances of this case are displaced by Ms Fu's unchallenged evidence that she did not see, access or open the email at the relevant address until after the end of the statutory period.