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UNFREEZING BANK ACCOUNTS
Any creditor owed £750 either solely or jointly with others may petition for the winding up of a company. Once a petition has been presented, then the consequences for the company can be catastrophic. Any disposition of the company’s assets after commencement of winding up is void unless the court otherwise orders.
Winding up petitions are advertised in the London Gazette. All high street banks and lenders monitor this very closely because if a customer is involved in such an action they MUST freeze the bank account immediately (if they do not, the liquidator could require them to make good any loss). This affects the company’s ability to continue trading; wages and salaries may be unpaid even when money is held to pay them. A company may even have funds to pay the petitioning creditor, but cannot as the bank will not release funds.
If the company wishes to carry on using its bank account, it must obtain a “Validation Order” from the court to unfreeze it.
We can refer you to solicitors to make an application either to the Companies Court at the RCJ, or the relevant High Court District Registry, or to the county court with jurisdiction, as the case may require.
Contact us on on 020 7504 1299
or
email info@crichtonsco.com