A bank will usually freeze the bank account of a company that has had a winding up petition presented against it.
A company can apply to the Court to have an order made that says that disposition of company assets (including withdrawals from a bank account) will not be void in the event of a winding up order being granted.
In many cases, especially if the company disputes the winding up petition, the company will want to continue to trade in the period between the presentation of the winding up petition and its hearing.
Therefore, once the directors of a company have become aware that a winding up petition has been presented, it is advisable to seek a validation order in respect of all dispositions which are to be made by the company thereafter.
A third party in line to receive property from the company may also want to seek a validation order to prevent the receipt of property from the company subsequently being avoided.
If you have been threatened or served with a winding up petition or received property from an insolvent company please contact one of our experts as a matter of urgency for a free, no obligation meeting to discuss your circumstances and the options available to you.