wages account

Definition:

a special bank account opened by a bank for a customer that is a registered company in financial difficulties so as to record all loans made by the bank to the customer for the purpose of paying wages of employees of the customer. Within limits, these loans will be preferential debts if the company is wound up or if an administrative receiver is appointed. Also called ‘wages and salaries account’.



Contribute:

Add to or refine this definition | Discuss on our forum

Share: