COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 289 Fraudulent preference.

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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 289

Fraudulent preference.

289.(1) Where

(a)a company is being wound up; and

(b)anything made or done after the commencement of this Act is void under
section two hundred and eighty-eight as a fraudulent preference of a person
interested in property mortgaged or charged to secure the company's debt;

(2) The value of the said person's interest shall be determined as at the date
of the transaction constituting the fraudulent preference, and shall be
determined as if the interest were free of all incumbrances other than those
to which the charge for the company's debt was then subject.

(3) On any application made to the court with respect to any payment on the
ground that the payment was a fraudulent preference of a surety or guarantor,
the court shall have jurisdiction to determine any questions with respect to
the payment arising between the person to whom the payment was made and the
surety or guarantor and to grant relief in respect thereof, notwithstanding
that it is not necessary so to do for the purposes of the winding up, and for
that purpose may give leave to bring in the surety or guarantor as a third
party as in the case of an action for the recovery of the sum paid.

(4) Sub-section (3) shall apply, with the necessary modifications, in relation
to transactions other than the payment of money as it applies in relation to
payments.

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Northern Irish Legislation

COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 289