Section 530. Liquidator’s right to recover in respect of certain sales to or by company

(1) Where any property, business or undertaking has been acquired by a company for a cash consideration, the liquidator may recover any amount by which the cash consideration for the acquisition exceeded the value of the property, business or undertaking at the time of its acquisition from—

(a) a person who was at the time of the sale, a director of the company or a person connected with a director; or

(b) a company of which, at the time of the sale, a person was a director who was also a director of the first-mentioned company or a person connected with a director.

(2) Where any property, business or undertaking has been sold by a company for a cash consideration, the liquidator may recover any amount by which the value of the property, business or undertaking exceeded the cash consideration at the time of its sale from—

(a) a person who was at the time of the sale a director of the company or a person connected with a director; or

(b) a company of which, at the time of the sale, a person was a director who was also a director of the first-mentioned company or a person connected with a director.

(3) The amount to be recovered in subsection (1) or (2) shall refer to the acquisition or sale, as the case may be, made within a period of two years before—

(a) in the case of a winding up by Court, the presentation of the winding up petition against the company; or

(b) in the case of a voluntary winding up, the passing of the resolution to wind up the company.

(4) For the purposes of this section, the value of the property, business or undertaking includes the value of any goodwill or profits which might have been made from the business or undertaking or similar considerations.

(5) In this section, “cash consideration”, in relation to an acquisition or sale by a company, means consideration for the acquisition or sale payable otherwise than by the issue of shares in the company.