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Senior Partner
Senior Partner, Solicitor
Category: Law
Satisfied Customers: 13329
Experience:  Solicitor with more than 30 years experience
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Can a UK bank legal freeze a company bank account only on grounds

Customer Question

Can a UK bank legal freeze a company bank account only on grounds of a winding up petition by hmrc
Submitted: 4 years ago.
Category: Law
Expert:  Senior Partner replied 4 years ago.
Hi thanks for your question. I am afraid that a bank will always freeze a bank account after a winding up petition has been advertised. They will have that power under their mandate and will do so to prevent any suggestion that they allowed payments to be made preferring one creditor over the other or that were not permitted. Once winding up has commenced any disposal of the companies assets is void so it is automatic practice for banks to freeze the accounts. The rightful owner of the funds will need to deal with the liquidator unless the petition is dismissed.