Companies Act (Cap. 386), article 303

303. (1) Every privilege, hypothec or other charge, or transfer or other disposal of property or rights, and any payment, execu tion or other act relating to property or rights made or done by or against a company, and any obligation incurred by the company within six months before the dissolution of the company shall be deemed to be a fraudulent preference against its creditors whet her it is of a gratuitous nature or an onerous nature if it constit utes a transaction at an undervalue or if a preference is given, unles s the person in whose favour it is made, done or incurred, proves tha t he did not know and did not have reason to believe that the compan y was likely to be dissolved by r eason of insolvency, and in the event of the company being so dissolved every such fraudulent preference shall be void. (2) For the purposes of this article - (a) a company enters into a transaction at an undervalue if: (i) the company makes a gift or otherwise enters COMP ANIES [CAP. 386. 185 into a transaction on terms that provide for the company to receive no consideration, or (ii) the company enters i nto a transaction for a consideration the value of which, in money or money’s worth, is significantly less than the value in money or money’s worth of the consideration provided by the company; (b) a company gives a prefe rence to a person if: (i) that person is one of the company’s creditors or a surety or guarantor for any of the company’s debts or other liabilities; and (ii) the company does anything or suffers anything to be done which, in eithe r case, has the effect of putting that person into a position which, in the event of the company going into insolvent winding up, will be better than the position he would have been had that act or omission not occurred. Liabilities and rights with respect to fraudulent preferences.