A statutory demand is a written demand for the payment of a debt and can be used by landlords as a quick and relatively inexpensive way to take action to recover unpaid rent.
They are often issued as a warning to pay sums due before further legal action is taken, such a winding up order.
If the tenant has not paid the debt within 21 days, landlords may be entitled to present a winding up petition to the court, with the unpaid debt used as proof of the company’s insolvency.
It’s worth noting that the Corporate Insolvency and Governance Act 2020 prevents creditors from taking any enforcement action for an initial period of 20 business days, to give companies “breathing space” to pursue a rescue or restructuring plan.