What is a statutory demand? Can I issue a winding up petition? Does Statutory Demand Serve an important purpose? If a winding up petition is issued for a debt that is dispute the court will simply dismiss the petition and could award costs against the creditor. But while the statutory demand does serve an important purpose, there are other ways to go about issuing a winding up petition.
Any statutory demand made in this period will be.
COVID-19: Service of statutory demands and bankruptcy winding – up petitions – what should you do? A statutory demand usually comes before a winding up petition. This is a formal request for payment issued from an outstanding creditor. While any creditor can serve you with a statutory demand , they are frequently utilised by HMRC chasing unpaid tax debts.
Statutory demands are only served after a creditor has exhausted all other avenues of. A guide to statutory demands in the context of personal and corporate insolvency. This includes guidance on when a statutory demand may be used against a company or an individual, how to draft and serve a statutory demand , the potential consequences of serving a statutory demand and the requirements for presenting a bankruptcy petition or winding – up petition.
A company can oppose a Statutory Demand if there is a bona fide dispute on substantial grounds. You can apply to bankrupt your debtor or close (‘ wind up ’) their company if they do not respond to the statutory demand within days.
To print the whole chapter in HTML, please click at the bottom of the TOC panel and then click. Please set the page orientation to “Landscape” for printing of bilingual texts on a single page. It will be in force until 30th June and can be extende along with the other measures to protect tenants. Any winding – up petition where the company is unable to pay because of COVID-may not be presented.
The winding up application was made following the expiry of a statutory demand served upon JJW by Aareal for a debt exceeding €million. Bill comes into force. Award winning top UK Law Firm. A creditor can then use this presumption of insolvency to apply to the Court to have the debtor company wound up.
If you receive a statutory demand , always act immediately. When a company is compulsorily wound up by the Court, the winding up is deemed to have commenced at the time the Originating Summons for winding up was filed. Upon the commencement of winding up , the company’s officers have no power to carry on the business of the company. Following the expiry of working days from date of service of the statutory demand , the applicant creditor may issue proceedings in the High Court to wind up the company. These proceedings, are issued under Section 241(2)(c).
Winding up proceedings. Appleby’s Guernsey Dispute Resolution team recently acted for Aareal Bank AG (Aareal) in successfully obtaining a winding up order against a Guernsey Company (JJW). Government imposes moratorium on statutory demands and winding up petitions.
The government has announced that it will temporarily ban commercial property landlords from issuing statutory demands and winding – up petitions against tenant companies unable to pay amounts owed under their lease due to coronavirus. Other methods to evidence that a company is unable to pay its debts are set out in Section 1of the Act.
Therefore, provided that your debt is due and is not in any way dispute you may want to demonstrate the company’s inability to pay its debts by simply demanding. If you are having problems recovering money owed to you this can force the hand of the Debtor by threatening either bankruptcy (if an individual) or winding – up (if a company). An update to the article to account for the coming into effect of the Insolvency, Restructuring and Dissolution Act is in progress.
Before filing a bankruptcy petition, the creditor may be required to issue a statutory demand to the debtor. The creditor must use all reasonable ways to bring the statutory demand to the debtor’s attention, including the delivery of the demand by hand. During this perio if a debtor company has not responded to your statutory demand , you may issue winding up proceedings.
However, a debtor company may wish to make an application to set aside your statutory demand. Has your company been served with a statutory demand for a debt allegedly owed? It is not uncommon for directors who receive a statutory demand to ignore it believing that if they just pay the outstanding money before it gets to court, or before the hearing of the winding up application, the matter will be resolved.
If winding up proceedings are to follow and the Creditor wished to rely upon the statutory demand for insolvency purposes, the debt should be over £750. A debt may be proved in a compulsory winding up by delivering or sending through the post to the Official Receiver this proof of debt form and accompanied by a filing fee of HKD35. No filing fee will be payable for any claim of debt not exceeding HKD250.