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Section 684 of Insolvency Act CAP 53: What "relevant time" means in sections 682 and 683

    

(1) Subject to subsection (3), the time at which a company enters into a transaction at an undervalue is a relevant time if the transaction is entered into at a time—
(a) during the two years immediately preceding the onset of insolvency;
(b) between the making of an administration application in respect of the company and the making of an administration order on the application; or
(c) between lodgement with the Court of a copy of notice of intention to appoint an administrator under section 534 or 541 and the making of an appointment under that section.
(2) Subject to subsection (3), the time at which a company gives a preference is a relevant time if the preference is given—
(a) in the case of a preference given to a person connected with the company otherwise than as its employee, at a time during the two years immediately preceding the onset of insolvency;
(b) in the case of a preference that is not a transaction entered into at an undervalue and is not so given, at a time during the six months immediately preceding the onset of insolvency;
(c) at a time between the making of an administration application in respect of the company and the making of an administration order on the application; or
(d) at a time between lodgement with the Court of a copy of notice of intention to appoint an administrator under section 534 or 541 and the making of an appointment under that section.
(3) If a company enters into a transaction at an undervalue at a time referred to in subsection (1)(a), or gives a preference at a time referred to in subsection (2)(a) or (b), that time is a relevant time for the purposes of section 682 or 683 only if the company—
(a) is at that time unable to pay its debts; or
(b) becomes unable to pay its debts in consequence of the transaction or preference.
(4) In the absence of evidence to the contrary, the conditions in subsection (3) are presumed to exist if
—
(a) the transaction at undervalue is entered into with; or
(b) the preference is given to, a person who is connected with the company.
(5) For the purposes of subsections (1) and (2), the onset of insolvency is—
(a) if section 682 or 683 applies because an administrator of a company has been appointed by an administration order, the date on which the administration application is made;
(b) if section 682 or 683 applies because an administrator of a company is appointed under section 534 or 541 following lodging with the Court of a copy of a notice of intention to appoint under that section, the date on which the copy of the notice is lodged;
(c) if section 682 or 683 applies because an administrator of a company is appointed otherwise than as referred to in paragraph (a) or (b), the date on which the appointment takes effect;
(d) if section 682 or 683 applies because a liquidator is appointed in respect of the company, either following conversion of administration into liquidation or at the time when the appointment of an administrator ends, the date on which the company entered administration (or, if relevant, the date on which the application for the administration order was made or a copy of the notice of intention to appoint was lodged); and
(e) if section 682 or 683 applies because a liquidator is appointed in respect of the company, the date of the commencement of the liquidation.

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Disclaimer: This document is not to be taken as legal advise.

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