Companies Act 2014 section 558ZM

Power of relevant court to order the return of assets improperly transferred

Section 558ZM gives the court the power to order the return of company assets that were disposed of fraudulently during the rescue process for small and micro companies.

• During the rescue period, the process adviser can apply to court if company property was disposed of by any means and the disposal amounted to a fraud on the company, its creditors, or its members
• If the court considers it just and equitable, it can order anyone who has use, control, or possession of the property (or its proceeds) to deliver it or pay an equivalent sum to the process adviser
• This provision does not apply to transactions already covered by section 604, which deals with unfair preferences in the context of winding up
• The court must have regard to the rights of persons who acquired an interest in the property in good faith and for value before deciding whether to make an order