If your company bank account has been frozen because of a winding up petition – we can help. A validation order application is normally the best way to proceed, allowing you to continue trading and avoiding the risk of personal liability as well. We have been helping directors and businesses since 2002. Let our team of experts help you too.
Validation orders can be a hugely important court application for a company facing a winding up petition. Success in a validation order application can make the difference between the company surviving or not. Getting a validation order application right is therefore crucial.
- validation orders are often required by a company served with a winding up order to help deal with a frozen bank account or validate payments it wants to make to suppliers, creditors or staff;
- if a winding up petition has been served, it often has the effect of a “freeze bank account” scenario, but a successful validation order application can unfreeze the bank account in whole or in part and thus allow the company to continue trading;
- validation orders require an application to court supported by well drafted witness statement evidence setting out the reasons why the court should allow the company subject to the winding up order to pay various creditors and / or suppliers and release funds from a frozen bank account.
Avoid personal liability as a director
Successful validation orders can have a dramatic effect on the survival prospects of a company enabling it to continue trading as well as avoiding possible personal liability for a director. If no validation order is applied for and a payment still made from a company bank account when there is a winding up petition in place, if the company is ultimately wound up, the director can be personally liable to repay that money.
At Francis Wilks & Jones we are the experts in validation orders. Contact us now and we can help you with a validation order application and unfreeze your company bank account and reverse a winding up order.