{
  "url": "https://openlegislation.uk/companies-act-1948/section-223",
  "json_url": "https://openlegislation.uk/companies-act-1948/section-223.json",
  "legislation": "ukpga/Geo6/11-12/38",
  "legislation_title": "Companies Act 1948",
  "legislation_url": "https://openlegislation.uk/companies-act-1948",
  "path": "section/223",
  "kind": "section",
  "number": "223",
  "heading": "Definition of inability to pay debts.",
  "text": "A company shall be deemed to be unable to pay its debts—\n(a) if a creditor, by assignment or otherwise, to whom the company is indebted in a sum exceeding fifty pounds then due has served on the company, by leaving it at the registered office of the company, a demand under his hand requiring the company to pay the sum so due and the company has for three weeks thereafter neglected to pay the sum or to secure or compound for it to the reasonable satisfaction of the creditor; or\n(b) if, in England or Northern Ireland, execution or other process issued on a judgment, decree or order of any court in favour of a creditor of the company is returned unsatisfied in whole or in part; or\n(c) if, in Scotland, the induciae of a charge for payment on an extract decree, or an extract registered bond, or an extract registered protest have expired without payment being made; or\n(d) if it is proved to the satisfaction of the court that the company is unable to pay its debts, and, in determining whether a company is unable to pay its debts, the court shall take into account the contingent and prospective liabilities of the company.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/Geo6/11-12/38/section/223",
    "retrieved_at": "2026-10-29T11:23:04.638870+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}