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Companies Act 1947

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Changes over time for: Section 92

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[F192 Amendments as to fraudulent preference. U.K.

(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2

(2)Where, in the case of a company wound up in England, anything made or done after the coming into force of this section is void under the said section two hundred and sixty-five as a fraudulent preference of a person interested in property mortgaged or charged to secure the company’s debt, then (without prejudice to any rights or liabilities arising apart from this provision) the person preferred shall be subject to the same liabilities, and shall have the same rights, as if he had undertaken to be personally liable as surety for the debt to the extent of the charge on the property or the value of his interest, whichever is the less.

(3)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.

(4)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. This subsection shall apply, with the necessary modifications, in relation to transactions other than the payment of money as it applies in relation to payments.]

Textual Amendments

F1S. 92 repealed (E.W.) by Insolvency Act 1985 (c. 65, SIF 66), s. 235, Sch. 10 Pt. III, Insolvency Act 1986 (c. 45, SIF 66), s. 437, Sch. 11 para. 10(2)

F2Ss. 92(1), 121 repealed by Companies Act 1948 (c. 38), s. 459, Sch. 17 Pt. I and expressed to be repealed (E.W.) by Insolvency Act 1985 (c. 65, SIF 66), s. 235, Sch. 10, Pt. III, Insolvency Act 1986 (c. 45, SIF 66), s. 437, Sch. 11 para. 10(2)

Modifications etc. (not altering text)

C1S. 92, except as applied by s. 115(4) of this Act, repealed by Companies Act 1948 (c. 38), s. 459, Sch. 17 Pt. II

C2The “said section two hundred and sixty-five” means Companies Act 1929 (c. 23), s. 265

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