Revised Laws of Saint Lucia (2021)

386.   Definition of inability to pay debts

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    (1)   A company is deemed to be unable to pay its debts if—

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      (a)     a creditor, by assignment or otherwise, to whom the company is indebted in a sum exceeding $5,000 then due, has served on the company, by leaving it at the registered office of the company, a demand under his or her hand or under the hand of his or her agent lawfully authorised requiring the company to pay the sum so due, and the company has for 3 weeks thereafter neglected to pay the sum, or to secure or compound for it to the reasonable satisfaction of the creditor;

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      (b)     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

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      (c)     it is proved to the satisfaction of the court that the company is unable to pay its debts as they become due.

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    (2)   A company is also deemed unable to pay its debts if it is proved to the satisfaction of the court that the value of the company's assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities.

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    (3)   The money sum for the time being specified in subsection (1)(a) is subject to increase or reduction by regulation under section 535.