HomeFWJ TakeawayCompany rescueFailing companiesWhat are the effects of a validation order?

Validation orders are a brilliant way to deal with the problem of a winding up petition being served on your company. They allow you to trade safely with reduced risk of personal claims against directors if the company later becomes insolvent

A validation order allows a company to continue to trade or dispose of a specific asset – such as a property – if it has been determined by the court that these transactions will benefit all creditors.

The particular effects of each validation order depend on its terms, which vary. For example, while some validation orders are general, validating transactions at large until the winding-up petition is resolved, others:

  • only allow specific payments in and out of the company’s bank account (eg for the payment of employees or suppliers);
  • only allow trading to continue for a specific period of time, for instance, until the next hearing of the winding-up petition

At Francis Wilks & Jones, we have significant experience in validation orders and deal regularly with the court in making these specific applications. We are highly successful and have helped many companies survive and prosper when faced with a winding up petition problem. We offer quick and effective winding up petition and validation order advice. Whatever your situation. Don’t delay. Call now.

One of the most astute appointments I have ever made.

A company director

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