§ Lord Jenkins of Putneyasked Her Majesty's Government:
Whether it is legally possible for an insolvent limited company to transfer its gross and entire assets free from liabilities to another company with the same directors, thereby making it impossible for creditors of the insolvent company to collect any part of the debts due to them.
§ The Minister of State, Department of Trade and Industry (Lord Fraser of Carmyllie):An insolvent company may transfer its assets, independently of its liabilities, to another company, whether or not with the same directors. A proper price should be paid and the insolvent company's creditors can then exercise their rights under the law to recover the debt due to them. Where assets are transferred for less than their value, insolvency and corporate law provides remedies and sanctions, both civil and criminal, which may be invoked where appropriate.