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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.
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