Chapter 9 - Liquidators investigations Flashcards
S234/S235/S236
S234 - order to deliver up company property
S235 - obliges directors/officers/employees to co-operate with office holder
S236 - submit to examination under S236.
Powers for liquidators, administrators, administrative receivers and provisional liquidators/
S238
Transactions at under value
Relevant time:
Unconnected person - 2 years
Connected person - 2 years
Insolvency required at time of transaction
Insolvency presumed if connected party
What is the relevant time for transactions at under value for:
Unconnected persons
Connected persons
S238
Relevant time:
Unconnected person - 2 years
Connected person - 2 years
Is insolvency presumed for transitions at at an undervalue for:
Unconnected persons
Connected persons
S238
Unconnected persons: Not presumed
Connected persons: Yes presumed
Insolvency required at time of transaction
S239
Preferences
Relevant time:
Unconnected person - 6 months
Connected person - 2 years
Insolvency required at day of transaction - it is not presumed
Desire to prefer must be shown if unconnected. Is presumed if connected party
What is the relevant time for preferences for:
Unconnected persons
Connected persons
S239
Relevant time:
Unconnected person - 6 months
Connected person - 2 years
Preference claims:
Is insolvency required at date of transaction?
If so is it assumed?
S239
Yes - insolvency needs to be shown
It is not presumed
Preference claims - what has to be shown?
Is is assumed in any case?
S239
Insolvency has to be shown - it is not assumed
Desire to prefer must be show, it is presumed if with a connected person
Who are connected persons?
Husband, wife, partner, former partner or relatives of person or persons partner.
Relatives, siblings, uncles, aunts, nieces and parents and children
S244
Extortionate credit transaction
Relevant time - three years (for WU this is from winding up order, not petition)
Do not need to show insolvency
It is assumed by court that transaction are extortionate and it is therefore left to the defence to prove this is not the case.
What is the relevant time for extortionate credit transactions?
S244
3 years from winding up order (not petition)
S245
Avoidance of floating charge
Floating charge on the company’s undertaking is invalid expect to extent of the aggregate of any fresh consideration given for it.
Unconnected party - 12 months, have to show insolvency
Connected party - 2 years, dont have to show insolvency
What is the relevant time for avoidance of floating charge?
S245
Unconnected party - 12 months, have to show insolvency
Connected party - 2 years, dont have to show insolvency
S423
Transactions defrauding creditors
Show that the intention was to put assets beyond reach of creditors or to prejudice their interests
Any time, don’t need to show insolvency
S216-S217
Director of company in liquidation is prohibited from being a director of a company known by a prohibited name for a period of 5 years.
Director would be liable for all the debts of the new company