Insolvency Act · 2022 Revised Edition · Part 7
210. Meaning of “relevant time” under sections 208 and 209
Official textFrom Attorney General's Chambers, unchanged
Subject to subsection (2), the time at which a company enters into a transaction at an undervalue or gives a preference is a relevant time if the transaction is entered into, or the preference given —
company
“company” means a company incorporated or registered under the Companies Act;
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 (otherwise than by reason only of being its employee), at a time in the period of 2 years ending with the onset of insolvency as defined in subsection (3);
in the case of a preference which is not such a transaction and is not so given, at a time in the period of 6 months ending with the onset of insolvency;
in either case, at a time between the making of a judicial management application in respect of the company and the making of a judicial management order on that application; and
in either case, at a time between the filing with the Court of a copy of notice of intention to appoint a judicial manager and the making of that appointment.
Where a company enters into a transaction at an undervalue or gives a preference at a time mentioned in subsection (1)(a) or (b), that time is not a relevant time for the purposes of section 208 or 209 unless the company —
is at that time unable to pay its debts within the meaning of section 100; or
Insolvency
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 are 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.
For the purposes of subsection (1), the onset of insolvency is —
insolvency
“insolvency”, in relation to a company, includes the approval of a voluntary arrangement or the appointment of a judicial manager;
in a case where section 208 or 209 applies by reason of a judicial manager of a company being appointed by judicial management order, the date on which the judicial management application is made;
in a case where section 208 or 209 applies by reason of a judicial manager of a company being appointed following filing with the Court of a copy of a notice of intention of the appointment, the date on which the copy of the notice is filed;
in a case where section 208 or 209 applies by reason of a judicial manager of a company being appointed otherwise than as mentioned in paragraph (a) or (b), the date on which the appointment takes effect; and
in a case where section 208 or 209 applies by reason of a company going into liquidation at any other time, the date of the commencement of the winding up.
Terms defined in s 3
company
Defined · s 3“company” means a company incorporated or registered under the Companies Act;
Court
Defined · s 3“Court”, in relation to a company, means a court having jurisdiction to wind up the company;
insolvency
Defined · s 3“insolvency”, in relation to a company, includes the approval of a voluntary arrangement or the appointment of a judicial manager;