Demand immediate payment of a debt from a limited company ('statutory demand')

Rule 7.3

SD 1

Statutory Demand

under section 123(1)(a) of the Insolvency Act 1986 [*]

under section 222(1)(a) of the Insolvency Act 1986 [*]

*[Delete whichever is not applicable]

Warning

• This is an important document. This demand must be dealt with within 21 days after its service upon the company or a winding-up order could be made in respect of the company.

• Please read the demand and notes carefully.

Notes for Creditor

•The person making this demand must complete the whole of sections 1, 2 (including Part B if applicable) and 3 and the authentication (including the date) at the end.

•The details given in Section 1 must comply with rule 1.6 of the Insolvency (England and Wales) Rules 2016 (IR 2016).

•The Details of Debt (Section 2) must include all the relevant the matters listed in the margin notes at Section 2.These should be set out in the order given unless the person completing the demand considers that a different order would be more convenient for the recipient.

•The creditor must give details of an individual with whom the Company can communicate about the Demand in Section 3.

•The authentication must comply with rule 1.5 of the IR 2016. If signatory of the demand is a solicitor or other agent of the creditor the name of his/her firm should be given.

Section 1 - DEMAND

To [Insert details of Debtor Company]

Name:(The Company)

[If registered, insert its registered name; if unregistered, its name]

Registered No. (if any):

[If incorporated in England and Wales under the Companies Act 2006 or a previous Companies Act, its registered number]

Address:

[If registered, insert its registered office; if unregistered, the postal address of any principal place of business]

[Or, if the Debtor Company was incorporated outside the UK insert the following details]*

Country or territory in which incorporated:

Registered No. (if any):

No. (if any) under which registered under Part 34 of Companies Act 2006:

*[delete if not applicable]

This demand is made under [section 123(1)(a)][section 222(1)(a)][*] of the Insolvency Act 1986 [*delete whichever section is not applicable]

and is served on you by the creditor [insert details of Creditor below]

Name:

[If a registered company, insert its registered name; if unregistered, its name; ifan individual, his or her full name]

Registered No. (if any):

[If a company incorporated in England and Wales under the Companies Act 2006 or a previous Companies Act, insert its registered number]

Address:

[If a registered company, insert its registered office; if unregistered, the postal address of any principal place of business; if an individual, his or her personal or professional address (as appropriate)]

[Or, if the Creditor is a company incorporated outside the UK insert the following details]*

Country or territory in which incorporated:

Registered No. (if any):

No. (if any) under which registered under Part 34 of Companies Act 2006:

*[delete if not applicable]

The creditor claims that the Company owes the sum of £,

full details of which are set out in section 2 of this Demand.

Section 2

These details must include the following information:

A. Details of Debt

(a) the amount of the debt as at the date of this demand;

(b) the consideration for the debt (or if is there is no consideration the way in which it arose); the date on which the debt arose should also be included;

(c) if the demand is founded on a judgment or order of a court, details of the judgment or order;

(d) if the creditor is entitled to the debt by way of assignment, a statement to that effect and that the details of the relevant assignment(s) are given in Part B below (which must then also be filled in);

(e) if the sums demanded include (i) any charge by way of interest not previously notified to the company as included in its liability and/or (ii) any other charge accruing due from time to time, each such charge must be separately identified (if claimed) with the amount or rate of the charge and the grounds upon which payment is claimed: the amount claimed for such charges must be limited to that which has accrued due at the date of the demand.

Part B [For completion if the creditor is entitled to the debt by way of assignment]

Name

Date(s) of Assignment

Original creditor

Assignees

Section 3

The Company must pay the above debt within 21 days of service of this demand on the Company after which the creditor may present a winding-up petition unless the Company offers security for the debt and the creditor agrees to accept security or the Company compounds the debt with the creditor’s agreement.

The individual or...