259. Avoidance of dispositions of property, etc.

Question 1

259. Avoidance of dispositions of property, etc.

Answer 1

General overview
[259.01] This brief section renders any disposition of property of the company, including things in action and any transfer of shares or alteration in the status of the members of the company after the commencement of winding up void, unless the court orders otherwise. In other words, upon the winding up application being made, any disposition of property or assets, or transfer of shares, etc. by the company shall be void. The intention of the section is to prevent the alienation and dissipation of the property of the company before the application is heard