Could the statutory demand be served by email?
27 The question which arises from the combination of the provisions of s 109X of the Corporations Act and s 28A of the Acts Interpretation Act is whether service of a statutory demand by email satisfies those provisions.
28 Recently, in Bioaction Pty Ltd v Ogborne [2022] FCA 436; 159 ACSR 173, Cheeseman J, when dealing with an application under s 459G to set aside a statutory demand, made the following observations in respect of service under the Corporations Act:
38 Provisions which provide for a mode of service of documents on natural persons (s 28A of the Acts Interpretation Act 1901 (Cth)) and companies (s 28A of the Acts Interpretation Act and s 109X of the Corporations Act) are facultative not mandatory. In respect of s 28A of the Acts Interpretation Act see Deputy Commissioner of Taxation v ABW Design and Construction Pty Ltd [2012] FCA 346; 203 FCR 70 at 76 [20] (Logan J). In respect of s 109X of the Corporations Act see Intelogent Pty Ltd v Onthego Group Pty Ltd [2021] FCA 257 at [33] - [38] and the authorities cited therein (Farrell J).
39 Other means of service may be adopted, and if those other means result in the documents arriving at the nominated address within the statutory period then valid service will have been effected. What is critical is the result which is achieved by the plaintiff's efforts, not the manner by which that result has been achieved (citations omitted) …
29 Relevantly, two important aspects of the 2020 Reforms are reflected in s 600G and in ss 105A and B. The latter establish statutory presumptions in respect of the time when, and the place, where electronic communications are sent and received.
30 Section 600G provides, relevantly:
600G Electronic communication of documents
(1) … this section applies to any document that is:
(a) required or permitted to be given to a person (the recipient); or
…
under:
(c) this Chapter; or
…
Giving a document
(2) The document may be given to the recipient by means of an electronic communication.
(3) The document may be given by giving the recipient (by means of an electronic communication or otherwise) sufficient information to allow the recipient to access the document electronically.
(4) However, an electronic communication or electronic access may only be used if, at the time the electronic communication is used or information about the electronic access is given:
(a) it is reasonable to expect that the document would be readily accessible so as to be useable for subsequent reference; and
(b) there is a nominated electronic address in relation to the recipient.
31 Section 105A provides:
105A When is an electronic communication sent and received
(1) This section applies in relation to an electronic communication unless otherwise agreed between the originator and the addressee of the electronic communication.
(2) An electronic communication is sent:
(a) when the electronic communication leaves an information system under the control of the originator or of the party who sent it on behalf of the originator; or
(b) if the electronic communication has not left an information system under the control of the originator or of the party who sent it on behalf of the originator - when the electronic communication is received by the addressee.
Note: Paragraph (b) would apply to a case where the parties exchange electronic communications through the same information system.
(3) Subsection (2) 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 sent under section 105B.
(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.
(Emphasis added)
32 Section 105B provides, relevantly:
105B Place where an electronic communication is sent or received
(1) This section applies in relation to an electronic communication unless otherwise agreed between the originator and the addressee of the electronic communication.
…
(3) An electronic communication is taken to have been received:
(a) if the originator is a company or registered scheme and the addressee is a member of the company or registered scheme - at the address of the addressee as contained on the register of members of the company or registered scheme at the time the communication is received; and
(b) if the addressee has a registered office and paragraph (a) does not apply - at the registered office of the addressee; and
(ba) if the addressee has a principal place of business in Australia and neither paragraph (a) nor (b) applies - the address of the addressee's principal place of business in Australia; and
(c) otherwise:
(i) at the most recent physical address nominated by the addressee to the originator; or
(ii) if the addressee has not nominated a physical address as mentioned in subparagraph (i) - at the addressee's usual residential address in Australia.
33 Section 161 of the Evidence Act 1995 (Cth) also creates a rebuttable presumption whereby an electronic communication of which a record is tendered was sent or made in the form shown in the record, was sent or made by a person appearing from the record to have sent it, was sent or made on the day and at the time it appears to have been sent, and was received at the destination to which it appears to have been sent at the time the sending of the communication concluded as shown in the record: Miletich v Murchie [2012] FCA 1013; 297 ALR 566 at [100]; Bioaction at [55].
34 As Cheeseman J explained (Bioaction at [49]; see also In the matter of Black Tie Holdings Pty Ltd [2022] NSWSC 781), at the same time as s 600G was amended the definitions of "document", "electronic communication" and "nominated electronic address" in s 9 of Chapter 1, Part 1.2 (Interpretation) of the Corporations Act were also amended:
Dictionary
Unless the contrary intention appears:
…
document means any record of information, and includes:
…
(c) anything from which sounds, images or writings can be reproduced with or without the aid of anything else; …
electronic communication means:
(a) a communication of information in the form of data, text or images by means of guided and/or unguided electromagnetic energy; or
(b) a communication of information in the form of speech by means of guided and/or unguided electromagnetic energy, where the speech is processed at its destination by an automated voice recognition system.
nominated electronic address, in relation to the addressee of an electronic communication, means:
(a) the most recent electronic address nominated by the addressee to the originator of the electronic communication as the electronic address for receiving electronic communications; or
(b) if:
(i) the addressee has nominated an electronic address as mentioned in paragraph (a) and the originator knows, or there are reasonable grounds to believe, that the address is not a current electronic address for the addressee; or
(ii) the addressee has not nominated an electronic address as mentioned in paragraph (a);
an electronic address that the originator believes on reasonable grounds to be a current electronic address for the addressee for receiving electronic communications.
35 Further, as Cheeseman J observed (Bioaction at [50]), s 600G applies to any document (very broadly defined in s 9) that is required or permitted to be given to a person under Chapter 5 of the Corporations Act. That necessarily includes a statutory demand that is permitted to be given by s 459E, which is contained within Chapter 5, Part 5.4, Division 2 of the Corporations Act.
36 In the present circumstances, subject to the answer to the question posed next, the statutory demand could be served by email.