296 Additional provisions relating to setting aside transactions and charges

(1)

The setting aside of a transaction or an order made under section 295 does not affect the title or interest of a person in property which that person has acquired—

(a)

from a person other than the company; and

(b)

for valuable consideration; and

(c)

without knowledge of the circumstances under which the property was acquired from the company.

(2)

The setting aside of a charge or an order made under section 295 does not affect the title or interest of a person in property which that person has acquired—

(a)

as the result of the exercise of a power of sale by the grantee of the charge; and

(b)

for valuable consideration; and

(c)

without knowledge of the circumstances relating to the giving of the charge.

(3)

A court must not order the recovery of property of a company (or its equivalent value) by a liquidator, whether under this Act, any other enactment, or in law or in equity, if the person from whom recovery is sought (A) proves that when A received the property—

(a)

A acted in good faith; and

(b)

a reasonable person in A’s position would not have suspected, and A did not have reasonable grounds for suspecting, that the company was, or would become, insolvent; and

(c)

A gave value for the property or altered A’s position in the reasonably held belief that the transfer of the property to A was valid and would not be set aside.

(4)

Nothing in the Land Transfer Act 1952 restricts the operation of this section or sections 292 to 295.

Section 296(3): replaced, on 1 November 2007, by section 31 of the Companies Amendment Act 2006 (2006 No 56).