193704-1932-Supplementary-Bill-read-a-second-time--Companies — Page 97

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(4) Subject to the retention of such sums as may be necessary for the costs and expenses of the wind- ing up, the foregoing debts shall be discharged forth- with so far as the assets are sufficient to meet them.

(5) In the event of a landlord or other person distraining or having distrained on any goods or effects of the company within three months next before the date of a winding-up order, the debts to which priority is given by this section shall be a first charge on the goods or effects so distrained ou, or the proceeds of the sale thereof:

Provided that, in respect of any money paid under any such charge, the landlord or other person shall have the same rights of priority as the person to whom the payment is made.

(6) In this section the expression "the relevant date" means---

(a) in the case of a company ordered to be wound up compulsorily which had not previously commenced to be wound voluntarily, the date of the winding-up order; and

up

(b) in any other case, the date of the commence-

ment of the winding up.

Effect of Winding Up on antecedent and other

Transactions.

252.-(1) Any conveyance, mortgage, delivery of Fraudulent preference. goods, payment, execution, or other act relating to 19 & 20 Geo. property which would, if made or done by or against 5, c. 23, an individual, be deemed in his bankruptcy a s. 265. fraudulent preference, shall, if made or done by or against a company, be deemed, in the event of its being wound up, a fraudulent preference of its creditors, and be invalid accordingly.

(2) For the purposes of this section, the commence- ment of the winding up shall be deemed to correspond with the presentation of the bankruptcy petition in the case of an individual,

(3) Any conveyance or assignment by a company of all its property to trustees for the benefit of all its creditors shall be void to all intents.

Effect of

253. Where a company is being wound

up, a floating floating charge on the undertaking or property of the charge. company created within six months of the commence- 19 & 20 Get ment of the winding up shall, unless it is proved that 5, c. 23, the company immediately after the creation of the s. 266. charge was solvent, be invalid, except to the amount of any cash paid to the company at the time of or subsequently to the creation of, and in consideration for, the charge, together with interest on that amount at the rate of five per cent. per annum.

Disclaimer

254.—(1) Where any part of the property of a of onerous company which is being wound up consists of land property in of any tenure burdened with onerous covenants, of case of shares or stock in companies, of unprofitable con- company

wound up. tracts, or of any other property that is unsaleable, 19 & 20 Geo. or not readily saleable, by reason of its binding the 5, c. 23, possessor thereof to the performance of any onerous s. 267. act, or to the payment of any sum of money, the liquidator of the company, notwithstanding that he has endeavoured to sell or has taken possession of the property, or exercised any act of ownership in relation thereto, may, with the leave of the court and subject to the provisions of this section, by