Regulatory and legal notices
Statutory demands and winding-up notices compared
Short answer
- England and Wales, company
- Debt over £750, 3 weeks 1
- Set aside, individual
- Apply within 18 days of service 4
- Ireland
- Over €10,000, 21 days, as enacted 6
- Singapore
- Over $15,000, 3 weeks 7
What a statutory demand is
A statutory demand is a written demand served by a creditor 1. It is not a court order. If it is ignored for the set period, the law deems the debtor unable to pay, and that becomes a ground for a petition 1,3. For companies in England and Wales, the demand is left at the registered office in the prescribed form 1.
England and Wales: companies
Section 123(1)(a) of the Insolvency Act 1986 deems a company unable to pay its debts if a creditor owed more than £750 then due serves a written demand at the registered office, and the company neglects for 3 weeks to pay, secure or compound the sum 1. An unsatisfied execution on a judgment is a separate ground 1.
When a creditor presents a winding-up petition, notice of it must be gazetted under rule 7.10 of the Insolvency (England and Wales) Rules 2016 5. Where the petitioner is not the company, the notice must appear not less than seven business days after service of the petition and not less than seven business days before the hearing 5. The court may dismiss the petition if notice is not given as the rule requires 5.
England and Wales: individuals
A creditor's bankruptcy petition needs a debt equal to or above the bankruptcy level, which section 267 sets at £5,000 2. The debt must be for a liquidated sum and unsecured, and there must be no outstanding application to set aside a statutory demand for it 2.
Under section 268, a debtor appears unable to pay where the creditor served a statutory demand in the prescribed form, at least 3 weeks have passed and the demand has been neither complied with nor set aside 3. The debtor can apply to the court to set aside the demand within 18 days of service, under rule 10.4 4. The application must give the date the debtor became aware of the demand, the grounds and any evidence 4.
Ireland and Singapore
Section 570 of Ireland's Companies Act 2014, as enacted, deems a company unable to pay its debts where a creditor owed more than €10,000 serves a written demand at the registered office and the company neglects to pay for 21 days 6. Two or more creditors owed more than €20,000 in total can serve a joint demand with the same 21 day period 6. This page cites the enacted text, and later amendments may change the amounts 6.
Section 125(2)(a) of Singapore's Insolvency, Restructuring and Dissolution Act 2018 deems a company unable to pay where a creditor owed more than $15,000 serves a written demand at the registered office and the company neglects to pay for 3 weeks after service 7. The demand may come from the creditor or its lawfully authorised agent 7.
Thresholds side by side
| Jurisdiction | Debtor | Minimum debt | Period | Law |
|---|---|---|---|---|
| England and Wales | Company | More than £750 1 | 3 weeks 1 | Insolvency Act 1986 s 123 1 |
| England and Wales | Individual | £5,000 bankruptcy level 2 | 3 weeks 3 | Insolvency Act 1986 ss 267 and 268 2,3 |
| Ireland | Company | More than €10,000, or €20,000 for joint creditors 6 | 21 days 6 | Companies Act 2014 s 570, as enacted 6 |
| Singapore | Company | More than $15,000 7 | 3 weeks 7 | IRDA 2018 s 125 7 |
Where to check for a petition
In the United Kingdom, The Gazette says most of its notices relate to corporate and personal insolvency or deceased estates 8. Only registered and verified notice placers, such as insolvency practitioners and solicitors, can place notices 8. Notice placers are solely responsible for the content of a notice 8.
Common questions
How long does a company have to pay a statutory demand in England?
3 weeks, after which it is deemed unable to pay its debts if it has not paid, secured or compounded the sum 1.
What is the minimum debt for a UK company statutory demand?
More than £750 1.
What is the bankruptcy level in England and Wales?
£5,000 2.
How long does an individual have to challenge a statutory demand?
An application to set it aside must be made within 18 days of service 4.
What is the statutory demand threshold in Singapore?
A debt of more than $15,000, unpaid for 3 weeks after service 7.
Rules and charges change. Check the official source linked on this page before you pay or travel. Spotted an error? Email hello@noticeofrecord.com.
Sources
- legislation.gov.uk: Insolvency Act 1986, section 123
- legislation.gov.uk: Insolvency Act 1986, section 267
- legislation.gov.uk: Insolvency Act 1986, section 268
- legislation.gov.uk: The Insolvency (England and Wales) Rules 2016, rule 10.4
- legislation.gov.uk: The Insolvency (England and Wales) Rules 2016, rule 7.10
- Irish Statute Book: Companies Act 2014, Section 570 (as enacted)
- Singapore Statutes Online: Insolvency, Restructuring and Dissolution Act 2018, section 125
- The Gazette: About The Gazette
Related
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How court papers are served in US federal courts and in England and Wales, deemed service, time limits and the Hague Service Convention for service abroad.
- Official gazettes and public notices of record
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- What a formal notice is
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- How to check whether a notice was given
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