HL Deb 23 October 1985 vol 467 cc1240-1

211 Page 66, leave out lines 26 to 40 and insert— '(7) Subject to subsection (7A) below, the time at which a company enters into a transaction at an undervalue or gives a preference is a relevant time for the purposes of this section if the transaction is entered into or the preference is given—

  1. (a) in the case of a transaction at an undervalue or of a preference which is given to a person who is connected with the company, at a time in the period of two years ending with the commencement date; or
  2. (b) in the case of a preference which is not such a transaction and is not so given, at a time in the period of six months ending with that date; or
  3. (c) in either case, at a time between the presentation of a petition for the making of an administration order in relation to the company and the making of such an order on that petition.
(7A) Where a company enters into a transaction at an undervalue or gives a preference at a time mentioned in subsection (l)(a) or (b) above, that time shall not be a relevant time for the purposes of this section unless the company—
  1. (a) is unable to pay its debts within the meaning of section 518 of the 1985 Act at that time; or
    2. 1241
  2. (b) becomes unable to pay its debts within the meaning of that section in consequence of the transaction or preference;
 but the requirements of this subsection shall be presumed to be satisfied, unless the contrary is shown, in relation to any transaction at an undervalue which is entered into by a company with a person who is connected with the company.'

Lord Lucas of Chilworth

My Lords, I beg to move that this House do agree with the Commons in their Amendment No. 211, and I should like to speak also to Amendments Nos. 211 A, 212 to 214, 217, 333 to 334, 457, 458, 458A, 478 and 531: