Customer money arrives in a restricted company account
Distinguish credited receipts from accessible funds during company account restriction linked to winding-up proceedings.
Corporate Recovery Partners
01 / 06
The balance rises but access is unresolved
A hypothetical company receives a customer payment while its bank account is restricted following a winding-up application. The director tells a supplier that payment can now be made. Before making that promise, confirm the account's actual restrictions and obtain legal advice. A visible credit does not establish that the company is permitted or able to transfer the money immediately.
Check that the receipt has actually reached the account and retain the bank record. Ask the bank, through verified channels, how the restriction applies to incoming and outgoing transactions. Keep the explanation with any previous correspondence. Do not infer unrestricted access from a balance display or assume every type of transaction is being treated the same way.
The Federal Court provides guidance on winding-up proceedings based on an unsatisfied statutory demand. Give the lawyer the actual application, orders and bank information so the relevant procedure can be assessed. The arrival of customer money does not itself determine the proceeding or authorise a particular transaction. Ask what evidence and action are required in the circumstances.
Describe the receipt accurately in the cash information
In the hypothetical example, show the amount received and separately identify the unresolved access question. Do not count the same receipt again as expected customer cash. Tell the accountant and adviser what the bank has confirmed and what remains unknown. A useful schedule distinguishes money recorded in the account from funds confirmed as available for an authorised purpose.
Update affected parties honestly if an earlier payment expectation was premature. Avoid promising that the bank will release the funds tomorrow unless that is supported and the legal position permits the proposed action. Do not redirect future receipts to a personal or related account as an improvised workaround. Obtain advice before changing collection arrangements.
If access changes, retain the relevant bank confirmation and ask the lawyer how it affects the next step. CRP can help organise the commercial information. The objective is to use the actual receipt correctly in the review without allowing a higher displayed balance to conceal an unresolved restriction.
