S238 2 insolvency act

Act amendment to earlier affecting provision S. Act applied (with modifications) by S. Whole provisions yet to be inserted into this Act (including any effects on those provisions): Pt. Essentially, the company can be in breach of this section if assets are sold below their proper value while the company is in administration or liquidation. According to Section 23 the provisions of this Code shall have an effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law.

Mr Hunt, the Company’s liquidator, applied under S2claiming that the payments made from the client account to Mr Hosking were transactions at an undervalue.

The liquidator made other allegations regarding the strength of the fee agreements with a suggestion that they may have been induced under misrepresentation. This Act shall apply throughout Malaysia. Interpretation Interpretation 2. Such actions, known as antecedent transaction claims, are aimed at the recovery of assets for the insolvent estate, for the benefit of the creditors as a whole. Practical Law coverage of this primary source reference and links to the underlying primary source materials.

Implications for insolvency based actions: A liquidator or administrator may only challenge the validity of a transaction under s2IA (transaction at an undervalue), s2IA (preference) or s2IA (avoidance of certain floating charges) if it took place at a time when the company was unable to pay its debts. A trustee in bankruptcy has a similar power where an individual, in the five years before his bankruptcy, disposed of an asset as a gift, in consideration of marriage or a civil partnership or for significantly less than the asset was worth, if the individual was insolvent at the time or became insolvent as a result of the transaction in. General interpretation 2. It is incoherent to suggest that a company which is insolvent by statute becomes insolvent again or in addition or in any additional way when wound up.

The underlying state of insolvency has not changed” (paragraph 35). Marginal note: Superintendent’s division office 2. Any notification, document or other information that is required by this Act to be given, forwarde maile sent or otherwise provided to the Superintendent, other than an application for a licence under subsection 13(1), shall be given, forwarde maile sent or otherwise provided to the Superintendent at the Superintendent’s division. The entry relating to section rep.

Reputed Property of an insolvent. Transfer of Powers and Duties of the State President Act , No. Amendment of Sections and by Article 21.

The definition of what constitutes misfeasance however is usually found from case law decisions. Misfeasance involves misapplying, retaining or becoming accountable for any money or other property of the company by any officer or ex-officer of the company (this includes directors and the company secretary). This principle generally holds wherever the debt arises because of a commercial contract. Short title and extent.

In section for sub-section (2), substitute the following sub-section:— “ (2) It extends to the whole State of Andhra Pradesh except the Scheduled Areas”. Transactions at an undervalue s238. Fraudulent Trading s213. Wrongful Trading s214. A summary of the changes, as they relate to insolvency proceedings, are highlighted below but for full details as to the newest additions to the IA.

Bankruptcy and Insolvency Act. In essence, the notices have to be published if a trader as defined in Section of the. There are basically two exceptions allowed in terms of Section 34(1).

Stay of proceedings upon filing of notice of intention or proposal. The Act attempts to maximise the opportunity for rescue of a business as a going concern by prohibiting (in certain circumstances) the reliance on clauses which enable a supplier to terminate a supply contract or the supply, or to do any other thing (such as change terms of the supply contract) after a company has entered into an insolvency or. There is, though, some relevance to the relationship between the recipient and the debtor as regards assumptions to be made regarding the insolvency of the debtor.

A potential PREFERENCE occurs when a company pays a specific creditor or group of creditors(s) and by doing so makes that creditor better off than the majority of other creditors, before going into a formal insolvency like administration or liquidation. Repeals and revocations. Savings and transitional provisions. Definition of “subsidiary” 8.