§ 307 Page 114, line 2, after 'Part' insert'—
- (a) disposes of any property comprised in the bankrupt's estate to an associate of the bankrupt; or
- (b) '.
§ 308 Page 114, line 3, leave out 'and' and insert 'he shall, if.
§ 309 Page 114, line 4, leave out 'he shall'.
§ Lord Lucas of Chilworth
My Lords, I beg to move that this House do agree with the Commons in their Amendments Nos. 307 to 309.1 shall speak briefly to those amendments, and should like to include Amendments Nos. 460 to 463, 470 and 472.
§ 460 Schedule 5, page 179, line 5, after 'Act' insert '—
- (a) disposes of any property of the company to a person who is connected with the company within the meaning of Part II of the Insolvency Act 1985); or
- (b) '.
§ 461 Page 179, line 7, leave out 'and' and insert 'he shall, if
§ 463 Page 179, line 8, leave out 'he shall'.
§ 470 Page 180, line 16, leave out 'In section 598(1)' and insert '(1) In subsection (1) of section 598'.
472 Page 180, line 19, at end insert—
'(2) After subsection (4) of that section there shall be inserted the following subsection—
§ These amendments impose upon trustees and liquidators in bankruptcy and winding-up proceedings a duty to inform their committees of any disposal of the bankrupt's or company's property to a person who is connected with the insolvent person or company. The amendments will help to prevent the abuse that can sometimes arise, particularly in relation to voluntary liquidations, of the sale of the company's assets to persons connected with the company, notably the directors, at a low price. The directors then carry on effectively what is the same business, while leaving the liabilities in the insolvent company.
§ I beg to move that this House do agree with the Commons in their Amendments Nos. 307 to 309.1270
§ Moved, That this House do agree with the Commons in their Amendments Nos. 307 to 309.—(Lord Lucas of Chilworth.)
§ On Question, Motion agreed to.