Bermuda civil and statutory proceedings
When can a Bermuda statutory demand establish inability to pay?
Three weeks of neglect to pay, secure or compound to the creditor’s reasonable satisfaction. Establish the statutory ground before seeking winding-up relief. The debt must exceed five hundred dollars and be then due. Other section 162 grounds are distinct. Three weeks is not a court-ordered payment deadline or automatic liquidation.
- Period
- Three weeks of neglect to pay, secure or compound to the creditor’s reasonable satisfaction
- Trigger
- Qualifying demand served by leaving it at the company’s registered office
- Rule
- Companies Act 1981 (1981:59), section 162(a)
Companies Act 1981 (1981:59), section 162(a). Official consolidated body retrieved October 10, 2026. Bermuda Laws Online states laws amended through August 11, 2026.
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Check the applicable procedure
The debt must exceed five hundred dollars and be then due. Other section 162 grounds are distinct. Three weeks is not a court-ordered payment deadline or automatic liquidation. Establish qualifying demand served by leaving it at the company’s registered office and the actual completion required to establish the statutory ground before seeking winding-up relief.
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When can a Bermuda statutory demand establish inability to pay?
Three weeks of neglect to pay, secure or compound to the creditor’s reasonable satisfaction. Establish the statutory ground before seeking winding-up relief. The debt must exceed five hundred dollars and be then due. Other section 162 grounds are distinct. Three weeks is not a court-ordered payment deadline or automatic liquidation.
Responsible actor. Creditor relying on Companies Act section 162(a).
Qualifying demand served by leaving it at the company’s registered office.
The debt must exceed five hundred dollars and be then due. Other section 162 grounds are distinct. Three weeks is not a court-ordered payment deadline or automatic liquidation.
The debt must exceed five hundred dollars and be then due. Other section 162 grounds are distinct. Three weeks is not a court-ordered payment deadline or automatic liquidation.
Companies Act 1981 (1981:59), section 162(a)How does this provision count time?
- Establish qualifying demand served by leaving it at the company’s registered office.
- Establish the statutory ground before seeking winding-up relief.
- Use the legally effective demand and the entire neglect condition. The company’s response may affect the statutory ground.
- A court closure does not itself establish or extend neglect of the demand. Examine the actual statutory ground and relief sought.
Use the legally effective demand and the entire neglect condition. The company’s response may affect the statutory ground.
A court closure does not itself establish or extend neglect of the demand. Examine the actual statutory ground and relief sought.
Companies Act 1981 (1981:59), section 162(a)Which facts prevent one automatic date?
The debt must exceed five hundred dollars and be then due. Other section 162 grounds are distinct. Three weeks is not a court-ordered payment deadline or automatic liquidation. Establish qualifying demand served by leaving it at the company’s registered office and the actual completion required to establish the statutory ground before seeking winding-up relief.
Creditor relying on Companies Act section 162(a) establishes qualifying demand served by leaving it at the company’s registered office. Use the legally effective demand and the entire neglect condition. The company’s response may affect the statutory ground. Three weeks of neglect to pay, secure or compound to the creditor’s reasonable satisfaction. Establish the statutory ground before seeking winding-up relief. Establish actual completion before calculating a final date.
A proposed boundary intersects a closure or holiday while the party seeks to establish the statutory ground before seeking winding-up relief. A court closure does not itself establish or extend neglect of the demand. Examine the actual statutory ground and relief sought. Establish the applicable computation and completion rule. No assumed carried date is supplied.
The company offers security that may reasonably satisfy the creditor. The debt must exceed five hundred dollars and be then due. Other section 162 grounds are distinct. Three weeks is not a court-ordered payment deadline or automatic liquidation. Resolve the changed source branch and required act. The nominal period alone does not establish this scenario.
Which conditions and exceptions apply?
- Actual procedure and branch
- The debt must exceed five hundred dollars and be then due. Other section 162 grounds are distinct. Three weeks is not a court-ordered payment deadline or automatic liquidation.
- Count and complete the actual act
- Use the legally effective demand and the entire neglect condition. The company’s response may affect the statutory ground. A court closure does not itself establish or extend neglect of the demand. Examine the actual statutory ground and relief sought.
- Actor and required completion
- Creditor relying on Companies Act section 162(a). Establish the statutory ground before seeking winding-up relief.
- The debt must exceed five hundred dollars and be then due. Other section 162 grounds are distinct. Three weeks is not a court-ordered payment deadline or automatic liquidation.
- Creditor relying on Companies Act section 162(a). Qualifying demand served by leaving it at the company’s registered office. Establish the statutory ground before seeking winding-up relief. The debt must exceed five hundred dollars and be then due. Other section 162 grounds are distinct. Three weeks is not a court-ordered payment deadline or automatic liquidation.
What must the responsible actor complete?
Questions about this procedure
When can a Bermuda statutory demand establish inability to pay?
What debt amount is required?
A sum exceeding five hundred dollars then due under section 162(a).
Companies Act 1981 (1981:59), section 162(a)Where must demand be left?
At the company’s registered office for this statutory branch.
Companies Act 1981 (1981:59), section 162(a)Does three weeks automatically wind up the company?
No. It is part of the statutory inability-to-pay ground.
Companies Act 1981 (1981:59), section 162(a)Can satisfactory security matter?
Yes. The text includes payment, security or compounding to the creditor’s reasonable satisfaction.
Companies Act 1981 (1981:59), section 162(a)Is this the only inability-to-pay route?
No. Section 162 contains other grounds requiring their own facts.
Companies Act 1981 (1981:59), section 162(a)Does preparing a demand start the period?
No. Establish service in the manner required by the provision.
Companies Act 1981 (1981:59), section 162(a)Official sources and review
Provisions used (2)
| Provision | Purpose |
|---|---|
| Companies Act 1981 (1981:59), section 162(a) | Check the identified procedure, event, counting rule or qualification |
| Interpretation Act 1951, applicable computation provisions | Check the identified procedure, event, counting rule or qualification |