Francis Wilks & Jones is the country’s leading firm of validation order solicitors. If you have been served with a winding up petition, we can help you to continue trading, unfreeze your bank account and reverse the winding up order. Whatever your situation, our friendly lawyers can assist.
What is a validation order?
A validation order is a specific type of court order made when a winding up petition has already been issued against a company.
- validation orders are very important as they provide court sanction to continue trading legally despite a winding up petition having been issued;
- failure to obtain a validation order can lead to personal claims against directors in the event the company is later wound up.
Urgent action is needed to deal with a winding up petition
Validation orders are special types of court applications which are made in urgent circumstances when a company has been served with a winding up petition. That could be a winding up petition issued by
If a winding up petition has been issued and served against a company, it might still want to keep on trading. For example, the company might want to
- pay staff;
- pay key suppliers; or
- complete a contract,
To do so – the company should always obtain a validation order at court first to allow those particular transactions to be made.
Consequences of not getting a validation order
Failure to properly obtain a validation order can have drastic consequences for the directors of a business and/or recipients of monies if the company then goes into liquidation.
- a liquidator can bring claims against the directors and/or recipients of monies to recover those from the directors;
- the company bank account can be frozen and it can affect the company’s ability to continue to trade. Bank account frozen issues can really damage a company and a validation order can give court sanction to the unfreezing of an account and force the bank to transfer the monies;
- suppliers might stop delivering goods / services without payment on delivery;
- adverse publicity might lead to the loss of key customers.
At Francis Wilks & Jones we are the experts in validation orders. We have a team who deal specifically with validation orders and we have expert links to barristers to attend court on an urgent basis to make these applications. We can even help reverse the original winding up order. Contact us now for your expert assistance.
SMEs, directors & shareholders
Obtaining a validation order to unfreeze a construction company’s bank account and have a winding up petition dismissed
Our client, a construction and building company, had been unknowingly pursued by HMRC for minimal liabilities: the company's accountants had failed to notify them...
SMEs, directors & shareholders
Having a winding up petition against a high street pharmacy dismissed and obtaining a validation order to unfreeze its bank account
Our client, a high street pharmacy, was subject to a winding up petition which had been presented by a creditor for non-payment of trade...