Frozen bank?20 Aug 2025 08:42
While a First Gazette Notice gives a company a two-month grace period before it's dissolved, the reaction from UK banks is often much faster and more severe.
Banks typically freeze accounts almost immediately after the First Gazette Notice is published.
Here's a breakdown of the timeline and reasoning:
* Public Notification: The moment the First Gazette Notice is published in The Gazette, it becomes a public record. This is not a private matter between Companies House and the company; it's a formal public announcement.
* Active Monitoring: UK banks, particularly those dealing with business accounts, have systems in place to actively monitor The Gazette for notices concerning their clients. They do this to mitigate risk and protect themselves from potential legal liability.
* Automated and Manual Processes: While some large banks may have automated systems that flag a company's account as soon as the notice is published, others may rely on manual checks. However, in either case, the process is very rapid. It is not uncommon for an account to be frozen within a matter of hours or days after the notice is published.
* Risk Aversion: The bank's primary motivation is to prevent any transactions that could be later deemed "void" under insolvency law. By freezing the account, they ensure that no funds can be moved, protecting themselves from having to repay money to the Crown if the company is ultimately dissolved.
In essence, a First Gazette Notice is a public alarm bell for a company's creditors and partners. For a bank, the notice is a signal to stop all activity on the account to protect the company's assets and the bank's own legal standing. The two-month window provided by Companies House is for the company to rectify its affairs, but the business's ability to operate is likely to be completely halted long before that deadline.
This is why a First Gazette Notice should be treated as a critical legal emergency, requiring immediate and decisive action.
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