Jump to ContentJump to Main Navigation
Transaction Avoidance in Insolvencies$
Users without a subscription are not able to see the full content.

Rebecca Parry, James Ayliffe, Sharif Shivji, Hamish Anderson, and William Trower

Print publication date: 2018

Print ISBN-13: 9780198793403

Published to Oxford Scholarship Online: March 2021

DOI: 10.1093/oso/9780198793403.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use.date: 26 June 2022

Transactions at an Undervalue (Insolvency Act 1986, Sections 238 and 339)

Transactions at an Undervalue (Insolvency Act 1986, Sections 238 and 339)

(p.77) 4 Transactions at an Undervalue (Insolvency Act 1986, Sections 238 and 339)
Transaction Avoidance in Insolvencies

Rebecca Parry

Sharif Shivji

Oxford University Press

Sections 238 (corporate insolvency) and 339 (bankruptcy) target gifts, transfers for no or insufficient consideration, and transactions with a gift element entered into by the debtor on the eve of insolvency, to the detriment of creditors. The sections themselves are relatively straightforward in operation. The main conditions for challenging a transaction are that (a) the debtor either received no consideration or received consideration of a value significantly less than the consideration he gave (in bankruptcy the section also operates where a transaction has been entered in consideration of marriage); and (b) the transaction must have been entered into at a ‘relevant time’ which consists of two elements: the transaction must have taken place within a particular time period occurring immediately prior to insolvency, and it must also be established that the transacting party was insolvent at the time of the transaction or as a result of it. In corporate insolvency cases, a defence is available where the transaction was entered into in the reasonable belief that it would benefit the company. The simplicity of these provisions makes them a powerful weapon for office holders, as does the fact that the burden of proof shifts in favour of the officeholder where

Keywords:   conventional gifts, cross-border transactions, cross-stream guarantee, deferred entitlements, good faith, group reorganizations, guarantees and collateral security, measurable consideration, procedural matters, transactions defrauding creditors

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .