Statutory Demands are not an essential part of the winding up process in the same way that they are in personal bankruptcy.
However, it is often preferable to serve a statutory demand on a debtor company before pursuing a winding up and it is therefore common place for companies to receive them prior to a petition being issued.
As above, should a Statutory Demand fail to comply with the strict requirements in the Insolvency Act 1986 you may apply to have the document set aside and therefore prevent a creditor from issuing a petition on the basis of the same.
If your debt is a disputed debt you may also apply to Court have the demand set aside on this basis. However, as the statutory demand is not essential in winding up rather than applying to set it aside we would usually advise you to issue an injunction application seeking that the Court orders that a winding up petition may not be delivered.
Once an application is made to Court a hearing date will be set where both parties can put forward their case before a Judge. In some injunction claims we can get hearings the same day to get an interim decision with a further hearing following shortly afterwards to confirm whether the injunction should be made final.
If your application is unsuccessful you will be prevented from defending the winding up petition on the same reasons which were submitted to the Court in your application. It is therefore important that this application is drafted correctly and your evidence presented concisely.
Abacus Solicitors can assist you in applying to have a Statutory Demand set aside or an injunction application, provide you with advice as to the application and represent you at the Court hearing.