1950_COMPANIES_ORDINANCE — Page 147

Companies.

of debentures under any floating charge created by the company, and be paid accordingly out of any property comprised in or subject to that charge.

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

(5) In the event of a landlord or other person dis- training 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 on, 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 pay- ment 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 com- menced to be wound up voluntarily, the date of the winding-up order; and

(b) in any other case, the date of the commencement

of the winding up.

Effect of Winding Up on antecedent and other

Transactions.

[251

251. (1) Any conveyance, mortgage, delivery of goods, payment, execution, or other act relating to property which would, if made or done by or against an individual, be deemed in his bankruptcy a 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.

[CAP. 32

Fraudulent 19 & 20 Geo. 5,

preference.

c. 23, s. 265.

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