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Witness Statement To Prove Service Of Statutory Demand (Compulsory Liquidation)

Publisher one

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Source file

Jurisdiction

England and Wales

Contract party

Relevant sectors

Type of legal document

💳 Statutory demand

Business activity

Wind up company

Why use a 💳 Statutory demand?

A statutory demand is a formal demand for payment of a debt that is due and payable, which if not paid, can lead to the debtor company being wound up. The demand must be in the prescribed form and must state the amount of the debt, the name and address of the creditor, and the period within which payment must be made. If the debt is not paid within 21 days, the creditor can apply to the court for a winding up order.

This legal template for a Witness Statement is specifically geared towards proving the service of a Statutory Demand, which is a formal demand for payment issued by a creditor to an individual or company. In this case, the Statutory Demand is associated with compulsory liquidation, a process that forces a company into winding up and dissolution by court order due to its inability to pay off its debts.

The Witness Statement serves as an essential piece of evidence in court proceedings related to compulsory liquidation. It is typically provided by an individual, usually an employee or representative of the creditor or their legal representative, who has observed and can testify to the proper service of the Statutory Demand to the debtor company.

This template aims to provide a comprehensive framework to document the events surrounding the service of the Statutory Demand. It typically includes sections such as the introduction, identifying the witness and their relationship to the creditor, outlining their knowledge of the debtor company, detailing the method and date the demand was served, and describing any interaction or communication between the witness, creditor, and debtor in relation to the demand.

Furthermore, the template would likely include a section addressing the Response to the Statutory Demand, providing an opportunity for the witness to report any acknowledgment or rebuttal from the debtor company. It may also outline any subsequent steps taken by the creditor, such as formal court proceedings or negotiations towards a settlement.

By utilizing this Witness Statement template, it becomes easier to establish in court that the Statutory Demand was properly served to the debtor company. It assists in substantiating the claim of the creditor for initiating the compulsory liquidation of the company under UK law.

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