329. Undue preference

Question 1

329. Undue preference

Answer 1

General overview
[329.01] Section 329 deals with unfair preference and undervalued transactions by the company and its creditors and third parties. It provides that any transfer, mortgage, delivery of goods, payment, execution or other act relating to property made or done by or against a company, which if done by or against an individual would be void or voidable under ss 98, 99, or 103 of the Bankruptcy Act (Cap 20), shall be similarly void or voidable in the event of a winding up of a company. In effect, this section provides for the applicability of the relevant sections of the Bankruptcy Act (Cap 20) to the situation of a winding up of a company.