paying for services provided by one company into another co

[Mattlan]

We have company A and B providing professional services (both belong to a group of companies) . Neither have bank accounts and for convenience we therefore request payment be made to company C bank account ( not part of group above).

For most of our clients this does not appear to pose a problem. However one client's in house legal counsel is now objecting to this setup saying that they can only pay Company A's invoices into a bank account held by Co A etc because the appointment doesn't involve Co C (despite them having already made payment previously for Co A work into Co C's account.)

My question is this...is there a valid reason for their objection, or does it really matter where the money is paid given that professional indemnity etc sits with the appointment documents.

Thanks for your help

[Mattlan]

Purple...none of these

Eric, hi hoped you would respond, appreciate your concerns, BUT , is there anything specifically legal preventing this happening

[Mattlan]

A & B bought the assets, goodwill and forward order book from Administrators of Co Y and Z. Time constraints, cost and the existence of company C bank account ( C is dormant) seemed to be the right answer at the time.

[Mattlan]

Thanks Countdown, you are along the right lines, but Client required due diligence on A and B doing, including their in house paperwork that specifically required bank details including name of account.

As I have indicated, all our other clients, big and small, have just got on with it and paid.

[Mattlan]

Gents,

Thank you all for taking the time to respond, guess we need to get things tidied up then !