A creditor can then use this presumption of insolvency to apply to the Court to have the debtor company wound up.
A statutory demand can be used to support such petitions because non-payment of a statutory demand within 21 days may be deemed evidence of the debtor's inability to pay his (or her or its) debts. He considered that the service should be regarded in much the same way as service of a winding-up petition. Winding-Up on the Basis of Statutory Demands. It can be issued against a company in respect of any unpaid, undisputed debt of more than £750. A statutory demand is a formal demand for payment. Once the written demand is served, the debtor has a three week period to pay the debt. or if the demand is against a limited company Rule 7.3 Form SD 1 section 123(1)(a) for the winding up of a company, if your company has a debt over £750 this is prepared and served without any court involvement. Normally, upon the expiry of three weeks from the date of service of the demand, unless an alternative arrangement has been agreed, a creditor can apply for a winding-up petition against a debtor. Not entirely, but the moratorium is broader than had been expected. In Re: A Company  BCLC 37 Nourse J. held that a demand made by telex machine is not effective service of a statutory demand. If a debtor company fails to comply with a statutory demand or have the demand set aside, a presumption can be made that the debtor company is insolvent (s 459C(2)). Have statutory demands and winding up petitions been banned?
A statutory demand Rule 10.1 Form SD 2 under section 268 (1) (a) of the insolvency act 1986,is the first step to personal bankruptcy for a debt over £5000. It was suggested in the Government's announcement on 23 April that the measures might only apply to landlords seeking to wind up tenants, or possibly even just retailers.
A statutory demand can be used as evidence that a company is unable to pay its debts and, if the demand … A statutory demand is commonly used by creditors to apply pressure on a debtor to pay a debt. However, the new restrictions apply to all creditors. Statutory Demands and Winding up petitions. Among the detailed provisions in the new bill, those of immediate concern to property investors, landlords and tenants are the wide-ranging restrictions on the use of statutory demands and winding-up petitions.
In short, from a real estate perspective, no winding up petition based on a statutory demand served on a corporate occupier between 1 March and 30 June 2020 (or 1 month after the Bill becomes law if later) will be permitted.
If you receive a statutory demand, always act immediately. A statutory demand is a formal demand for payment which, if it remains unpaid for more than three weeks, can be used to support a winding up petition. The government has introduced fundamental changes to the procedures for presenting winding-up petitions and making winding-up orders in the Corporate Governance and Insolvency Bill.