Statutory demand on a Scottish Company
Discussion
My England registered Ltd is owed money by a Scottish registered company (albeit that its trading address is an English address, but its registered office is in Edinburgh)
I would like to issue a statutory demand to help encourage the payment to appear
Anyone know enough about this to point me in the right direction, particularly does the Statutory Demand work in Scotland?
I would like to issue a statutory demand to help encourage the payment to appear
Anyone know enough about this to point me in the right direction, particularly does the Statutory Demand work in Scotland?
The English courts have no power to wind up a Scottish company (this is the result of sections 117 and 220 of the Insolvency Act 1986)- only the Scottish courts do.
A statutory demand is simply one of the ways of showing insolvency, as a prelude to a winding-up order (Insolvency Act 1986, s 123): the principle applies both side of the border, although the form is different. Thus service of an English statutory demand is a waste of time: you need to serve the form specified for use in Scotland, which is Form 4.1 (Scot):
http://www.aib.gov.uk/sites/default/files/publicat...
NB:
(1) You need to effect physical service of the statutory on the registered office of the company, e.g., by post or physical attendance - e-mail, etc., is not good enough (Insolvency Act 1986, ss 123, 423B(1)(f); rule 7.21 of the Insolvency (Scotland) Rules 1986).
(2) In England (and I assume - but do not know - that the same applies in Scotland), a statutory demand must not be served on a solvent company or in order to recover a disputed debt; a cross claim which is genuine, serious or has substance will be sufficient to establish a disputed debt.
A statutory demand is simply one of the ways of showing insolvency, as a prelude to a winding-up order (Insolvency Act 1986, s 123): the principle applies both side of the border, although the form is different. Thus service of an English statutory demand is a waste of time: you need to serve the form specified for use in Scotland, which is Form 4.1 (Scot):
http://www.aib.gov.uk/sites/default/files/publicat...
NB:
(1) You need to effect physical service of the statutory on the registered office of the company, e.g., by post or physical attendance - e-mail, etc., is not good enough (Insolvency Act 1986, ss 123, 423B(1)(f); rule 7.21 of the Insolvency (Scotland) Rules 1986).
(2) In England (and I assume - but do not know - that the same applies in Scotland), a statutory demand must not be served on a solvent company or in order to recover a disputed debt; a cross claim which is genuine, serious or has substance will be sufficient to establish a disputed debt.
EW109 said:
(2) In England (and I assume - but do not know - that the same applies in Scotland), a statutory demand must not be served on a solvent company or in order to recover a disputed debt; a cross claim which is genuine, serious or has substance will be sufficient to establish a disputed debt.
Really? Can you quote a source for that? I would have thought the IS would mention that fact if it were so.http://webarchive.nationalarchives.gov.uk/+/http:/...
A counter-claim, set-off, or cross-demand usually has to be for the same amount or more than the amount being claimed under the SD. They do not prevent service of a SD but are grounds for an application to set aside.
Edited by Red Devil on Sunday 31st August 12:55
JPJPJP said:
Debt is £7.5k and hasn't been disputed
Company is solvent (very)
SD feels right and I have never heard that it can't be issued on a solvent company before
What other options would people suggest.
Last date on letter before action is 1 Sep
So tomorrow, you take the promised action.Company is solvent (very)
SD feels right and I have never heard that it can't be issued on a solvent company before
What other options would people suggest.
Last date on letter before action is 1 Sep
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