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 businesses since 2002. Let our team of experts help you too.
Applying before the winding up order
If the application is made before a company’s assets have been disposed of, an “antecedent” validation order is required. The court will only grant it if:
- The company is solvent and able to pay its debts as they fall due; or
- The transaction or transactions to be validated will be beneficial to or will not prejudice the interests of all of the unsecured creditors as a class.
Applying after the winding up order
If the application is made after a disposition of the company’s assets, a “retrospective” validation order is required. Here the court will balance the interests of the recipient of the property with the interests of the company’s creditors at large. It is likely to grant the order in circumstances where the dispositions were made in good faith and before either the company or the recipient became aware of the winding-up petition.
- when considering an application for a retrospective validation order, the court, in determining whether to grant it, will seek to balance the interests of the recipient of the property in question with the interests of the company’s creditors.
- however, there is no guarantee that the order will be granted, even in circumstances where the disposition was made both in good faith and before either the company or the recipient became aware of the existence of the winding-up petition;
- it is therefore very important to take specialist advice when considering applying for a retrospective validation order.
Francis Wilks & Jones is the county’s leading firm of validation order solicitors. We are experts in all matters relating to validation orders and making these types of urgent applications. We can help a company continue to trade and help unfreeze a bank account. We can help with winding up order reversal.