| Commentary

174.3 Bank accounts

| Commentary

174.3 Bank accounts

Company winding up petitions are advertised in the Gazette and it has been the practice of banks (who monitor the Gazette) to freeze company banks accounts on a petition being advertised because they are concerned that the relation-back of the winding up to the presentation of the petition may mean, in particular, that payments on the debtor's instructions out of the account to third parties may be void and, if paid out of an overdrawn account, may have the consequence that the debt thereby incurred by the debtor to the bank is not recoverable1. By contrast bankruptcy

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