Q&As

What is a statutory demand?

read titleRead full title
Copyright © 2025 LexisNexis
Published by a LexisNexis Restructuring & Insolvency expert
Published on: 21 June 2023
imgtext

A statutory demand (in both corporate and personal insolvency) is a demand for a debt, either payable now, or payable at some future date, which is served on the debtor by one or more of their creditors. The purpose of the statutory demand is to establish that the debtor is unable to pay their/its debts and is therefore insolvent.

The basic requirements of statutory demands are that they should only be served on the debtor

Powered by Lexis+®
Jurisdiction(s):
United Kingdom

Popular documents

If a company issues shares unpaid or partly paid to a shareholder (A), and A subsequently transfers the

If a company issues shares unpaid or partly paid to a shareholder (A), and A subsequently transfers the shares to a third party (B) before they are paid up, are A and B jointly and severally liable for the amount unpaid on the shares?BackgroundThe nominal value of a share does not need to be paid at

Micklefield clauses

Micklefield clausesWhat is a Micklefield clause?It is common for employee share plans to provide that, on termination of employment (or when an employee is given or receives notice of termination of employment), subsisting share awards will be forfeited and subsisting share options will lapse.It is

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid