No bank account open

[Starlane]

By accident at a recent meeting the accountant let slip that the limited company did not have a bank account open from 2018 to the early part of 2020. Previous to this period the account was with a managing agent then a new bank account opened early 2020.

The directors have produced accounts for this period however I am confused as payments have been made to the company yet there is no bank account, I have asked for an explanation and sight of the bank accounts for this period and they are blanking me. So how have they paid the company filing fee, accountant etc if there was no limited company bank account?

The monies would have to come from somewhere and payments made to somewhere?

[SouthernDave]

Payments can still be made to a company even if they do t get put into a company bank account. Although its cery messy not to have one! As long as they have accounted it properly for money in and out. be difficult to check if any interest was paid on cash if its in a personal bank.

[Starlane]

Yes but how would a company pay for the building insurance if it does not have any money in its account? An individual would be paying company expenses?

[SouthernDave]

Your right, it would be paid from somewhere, very clunky way of running a company! Maybe they were using one of their personal accounts for business activities?

[eagle2]

I suggest that you start by going back to the service charge demands for the period, how did they require payment to be made? If they identify a bank account to transfer monies, you should request copies of the bank statements for that account. If it is not a bank client account, the Company has not been run properly. The questions then are what should be the balance held now followed by have any monies gone astray?