A transaction could be deemed to be at an undervalue and caught by the section even though it made no difference to the overall assets and even though only one rather than the generality of creditors was prejudiced by the transaction. Here, by creating a tenancy in favour of a limited company whose shares they also owned, they had not reduced their assets, but had prejudiced a chargee of the assets.
Citations:
Times 07-Jul-2000, Gazette 13-Jul-2000
Statutes:
Agricultural Credits Act 1928 7(1), Insolvency Act 1986 423
Jurisdiction:
England and Wales
Cited by:
Appeal from – National Westminster Bank plc v Jones and Others CA 24-Oct-2001
The respondent farmers charged the farm by way of an agricultural floating charge to the claimants. On coming into difficulties, they set up a limited company and granted a tenancy in its favour and transferred assets to it. The bank obtained . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 04 June 2022; Ref: scu.84215
