Companies Act Section 329 — Transfers not in good faith to be void

CHAPTER XX WINDING UP

Commercial / Corporate

Summary

A transfer of property, whether movable or immovable, or a delivery of goods made by a company will be void against the Company Liquidator if it was not made in the ordinary course of the company's business, and was not made in favour of a purchaser or encumbrancer acting in good faith and for valuable consideration. This applies when the transfer or delivery is made within one year before a petition for winding up is presented to the Tribunal under this Act. In simple terms, such a transfer or delivery made shortly before winding-up proceedings begin, and outside normal business dealings or without a genuine buyer or lender giving value in good faith, will not hold up against the liquidator.

Official Text

Any transfer of property, movable or immovable, or any delivery of goods, made by a company, not being a transfer or delivery made in the ordinary course of its business or in favour of a purchaser or encumbrancer in good faith and for valuable consideration, if made within a period of one year before the presentation of a petition for winding up by the Tribunal under this Act shall be void against the Company Liquidator.]