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unfair preference and improper transfer of assets - Coggle Diagram
unfair preference and improper transfer of assets
winding up
order of priority of creditors
retention of title clause, fixed charge holders, liquidators expenses, preferential creditors, floating charge holders, unsecured crediotrs - pari passu
608 improper transfer of assets
liquidaotr, creditor, contributory can apply for return of property
to be successful must show
property dispsoed of, effect to perpetrate a fraud
court can the if just and equitable order any person who appears to ahve benefited to pay a sum on such terms as court deems fit
inteniton to defraud not necessary, just effect
just and equitable
court have regards to the rights of persons who have bona fide and for value acquired an interest in the property
Le Chatelaine Thudichum v Conway
transfer of goods and cash - court - approved courtneys interpretation which focuses on intention for 604 while 608 just requires creditors or members deprived of something to which lawfully entitled
tucon process v bank of Ireland
summarised what was considered fraudulent - entry onto company premises and take possession of cash sum or stock in lieu of rent, personal expenditure by company directors recorded as business expenditure (
Devey enterprises) use of company funds to settle private debts of company director
Kirby*
standard of proof is to prove the effect
604 - unfair preference
station motors v AIB
- no direct evidence of intention, no rule of law precludes an inference of intention - was unfair preference - preferred bank, personal liability of controllers reduced, bank aware of situation
any disposition by company on verge of being wound in favour of any creditor void if done within 6 months
602 - limit of 6 months although 604(4) for conncted persons shifts burden of proof with regard to the connect person
up to person to prove not an unfair preference
s599 defines connected person