Companies Act (Cap. 386), article 304

304. (1) Where anything made or done after the appointed day is void under article 303 as a fraudulent preference of a perso n interested in property privileged, hypothecated or otherwise charged to secure the company’s debt, then, without prejudice t o any rights or liabilities arising apart from the provisions of this article, the person preferred sh all be subject to the same liab ilities and shall have the same rights as if he had undertaken to be personally liable as surety for the debt to the extent of the c harge on the property or the value of hi s interest, whichever is the less. (2) The value of the preferred person’s interest shall be determined as at the date of t he transaction constituting the fraudulent preference, and shall be determined as if the intere st were free of all encumbrances or burdens other than those to wh ich the charge for the company’s debt referred to in sub-article (1 ) was then subject. (3) On any application made to the court with respect to any payment on the ground that the payment was a fraudulent preference of a surety or guarantor, the court may determine any questions with respect to the pa yment arising between the perso n to whom the payment was made and the surety or guarantor and to grant relief in respect thereto. (4) The provisions of sub-article (3) shall apply, with the necessary modifications, in relat ion to transactions other than payments of money, as they apply in relation to such payments. Chapter IV - Qualifica tion of Liquidators and Prohibition of Certain Transfers by Liquidators Qualification of liquidators. Amended by: IV . 2003.119; I.2026.27.