Part XXIV Insolvency

Provisions against debt avoidance

C1C2375 Authority’s right to apply for an order.

1

The Authority may apply for an order under section 423 of the 1986 Act (or Article 367 of the 1989 Order) in relation to a debtor if—

a

at the time the transaction at an undervalue was entered into, the debtor was carrying on a regulated activity (whether or not in contravention of the general prohibition); and

b

a victim of the transaction is or was party to an agreement entered into with the debtor, the making or performance of which constituted or was part of a regulated activity carried on by the debtor.

2

An application made under this section is to be treated as made on behalf of every victim of the transaction to whom subsection (1)(b) applies.

3

Expressions which are given a meaning in Part XVI of the 1986 Act (or Article 367, 368 or 369 of the 1989 Order) have the same meaning when used in this section.