Fraudulent preference, Business Law and Ethics

Assignment Help:

Fraudulent Preference:

Under s.312, any disposition of the company's property and any creation of a charge, fixed or floating, effected during the period of six months before commencement of liquidations void as a fraudulent preference if:

(a) done voluntarily; and

(b) done with the intention of preferring one creditor (or surety) over another;

(c) at a time when the company was insolvent, ie. unable to pay its debts in full.

A "disposition" includes the payment of a debt.  Payment of one creditor with the intention of preferring him to others is a common example of fraudulent preference (if the other conditions are met).

    Case: RE M KUSHLER LTD (1943)

The directors had given personal guarantees of the company's bank overdraft.  They arranged that the company should pay its trade receipts into the account but should not pay its trade debts as they fell due with the result that the bank overdraft was paid off.  Shortly afterwards the company went into insolvent liquidation.


Related Discussions:- Fraudulent preference

Explain articles of universal declaration of human rights, Explain Articles...

Explain Articles of Universal Declaration of Human Rights i. Preamble: 'Whereas recognition of the inherent dignity and of the equivalent and inalienable rights of all  membe

What is policy clustering, What is Policy Clustering Adoption of polici...

What is Policy Clustering Adoption of policies is motivated by the observation that nation-states, or some other jurisdictional unit, choose similar institutions within a fairl

Powerpoint presentation on ethics-sustainability and culture, I will provid...

I will provide a cases from the media that have ethical implications. Please prepare a ppt presentation that: a) describes the issue/story (Clearly identify which case you ar

Explain the international law, Explain the International law Internatio...

Explain the International law International law is the body which governs State actions and its effective implementation within the States depends on the way in which States tr

State article 2 of air and outer space law, State Article 2 of air and oute...

State Article 2 of air and outer space law Article 2 states that for the purposes of this Convention the territory of a state shall be deemed to be the land areas and territori

Special courts, Special Courts However in addition to the courts dealt...

Special Courts However in addition to the courts dealt into paragraphs as 2.1 - 2.7 above, there exist in England a number of other institutions that are called "courts" or "t

Define the term - social attainment and economic growth, Define the term - ...

Define the term - social attainment and economic growth Many problems can also be seen either as private problem for those who experience them or as public policy failures that

What do you understand by collective bargaining, QUESTION 1 One of the ...

QUESTION 1 One of the main ingredients of a system of collective bargaining is the right to join and participate in the activities of a trade union. What is the extent of this

Analyse the link between csr and competitiveness, Question 1 "CSR can play...

Question 1 "CSR can play a key role in contributing to sustainable development while enhancing Europe's innovative potential and competitiveness" Critically analyse the link be

Labor law promote, The college contacted the state labor relations commissi...

The college contacted the state labor relations commission (LRC) to dismiss the petition due to the law did not needs collective bargaining for those who perform services as studen

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd