Chapter 9 - Liquidators investigations Flashcards

1
Q

S234/S235/S236

A

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/

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2
Q

S238

A

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

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3
Q

What is the relevant time for transactions at under value for:
Unconnected persons
Connected persons

A

S238

Relevant time:
Unconnected person - 2 years
Connected person - 2 years

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4
Q

Is insolvency presumed for transitions at at an undervalue for:
Unconnected persons
Connected persons

A

S238

Unconnected persons: Not presumed
Connected persons: Yes presumed

Insolvency required at time of transaction

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5
Q

S239

A

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

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6
Q

What is the relevant time for preferences for:
Unconnected persons
Connected persons

A

S239

Relevant time:
Unconnected person - 6 months
Connected person - 2 years

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7
Q

Preference claims:
Is insolvency required at date of transaction?
If so is it assumed?

A

S239

Yes - insolvency needs to be shown

It is not presumed

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8
Q

Preference claims - what has to be shown?
Is is assumed in any case?

A

S239

Insolvency has to be shown - it is not assumed

Desire to prefer must be show, it is presumed if with a connected person

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9
Q

Who are connected persons?

A

Husband, wife, partner, former partner or relatives of person or persons partner.

Relatives, siblings, uncles, aunts, nieces and parents and children

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10
Q

S244

A

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.

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11
Q

What is the relevant time for extortionate credit transactions?

A

S244

3 years from winding up order (not petition)

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12
Q

S245

A

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

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13
Q

What is the relevant time for avoidance of floating charge?

A

S245

Unconnected party - 12 months, have to show insolvency
Connected party - 2 years, dont have to show insolvency

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14
Q

S423

A

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

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15
Q

S216-S217

A

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

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16
Q

What must a liquidator provide in order to bring a claim for S214?

A

Wrongful trading

  • Company insolvent liquidation
  • The person knew, or ought to have known that there was no reasonable prospect that the company would avoid insolvency
  • Person was a director of the company at that time
17
Q

An action for misfeasance under S212 cannot be taken against which following persons:
A Former officer of Company
B Supervisor of the company’s voluntary arrangement
C liquidator or company
D An administrative receiver of the Company

A

B - Supervisor of the company’s voluntary arrangement