Validation Orders

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    Validation Orders

    From the date on which a winding up petition is presented at court, any dispositions of company property are potentially void, unless an application is made to the court for permission. The purpose of this is to preserve the assets of the company for the benefit or all and any creditors of the company.

    Payments to staff, suppliers or even utility bills fall into this category and if a winding up order is made, any official receiver or liquidator appointed could then claw back those payments from the recipients.

    It is possible to obtain a retrospective validation order, however, it is not presumed that permission will be granted, even if the company was not aware of the winding up petition at the time the transaction was made.

    So that you can be confident that you are proceeding appropriately, call us today to seek advice from our expert team.

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