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Ben Jones
Ben Jones, UK Lawyer
Category: Law
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My question is simple (probably not!) A local authority owes

Customer Question

My question is simple (probably not!)A local authority owes my company money. They are not responding to any correspondence. The sum is over £200k.Question:Can you issue a statutory demand against a local authority?
Submitted: 1 year ago.
Category: Law
Expert:  Ben Jones replied 1 year ago.

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

The specific laws dealing with statutory demands are the Insolvency Act 1986 and Insolvency Rules 1986 which allow for statutory demands to be served on companies and individuals. There is an argument that a local authority may qualify as an unregistered company because The Local Government Act 1972 provides that councils are bodies corporate, so there is an argument that they qualify as unregistered companies under the insolvency legislation.

However, it is highly unlikely that the Government would have reasonably intended that LAs should be subject to the winding up process, and therefore they are unlikely to be found to be unregistered companies if the matter came before a court.

So even though a statutory demand can be served on a LA, the provisions of the insolvency legislation relating to statutory demands would not apply to it. No LA has ever been wound up by the courts and it is unlikely that it would ever happen so a statutory demand will be a pointless exercise in the circumstances.

I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating (3, 4 or 5 stars) as that is an important part of our process and recognises the time I have spent assisting you. If you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you

Expert:  Ben Jones replied 1 year ago.

Hello, I see you have read my response to your query. If this has answered your question please take a second to leave a positive rating by selecting 3, 4 or 5 stars from the top of the page. I spend a lot of time and effort answering individual queries and I am not credited for my time until you leave your rating. If you still need further help please get back to me on here and I will assist as best as I can. Many thanks.

Expert:  Ben Jones replied 1 year ago.

Hello, do you need any further assistance or are you happy with the above response? Look forward to hearing from you.