Unfreeze your company bank account

You need to unfreeze your company bank account within days after it being inaccessible. Bank accounts frozen by winding up petitions often cause the closure of the business. Even if there was enough money frozen in the account to pay the debt, the court could still allow the petition to go through. This would cause the company to go into compulsory liquidation.

File a validation application

Many an unlucky director has been shocked in court when the judge ignored pleas to save the business.  As soon as a winding up petition has been filed the bank could freezes the account. The director should file a validation Application in Court that allows certain payments to be paid out of the account. This would normally include wages, the petition claim along with the associated legal costs and maybe an amount of money to pay for supplies but only  if it would better the position of the creditors.

Consider your options going forward

In order to persuade a judge to grant a validation order, a director must prove that the company can move into a solvent position. This could be straightforward or it may need a company voluntary arrangement to be proposed. Talk through the predicted outcomes with your advisor.

My Bank Manager is a Friend.

Big deal! Some Directors believe that their bank manager friend would allow the bank account to stay open.  Gone are those days! Banks freeze accounts when winding up petitions are present. This is because in the event of the company being wound up, the bank would have to pay the Official Receiver every penny back that has been through the bank account since the presentation of the petition. Call Directors Circle on 0333 050 8518 if you want to avoid your company from being wound up. You’ll be surprised what a little chat could do.