Companies Act 2014 section 608

Power of the court to order return of assets which have been improperly transferred

Section 608 gives the court the power to order the return of company assets that were disposed of fraudulently when a company is being wound up.

• Where company property has been disposed of in any manner and the effect was to defraud the company, its creditors, or its members, the court may order the return of that property or its proceeds to the liquidator
• An application to the court can be made by the liquidator, a creditor, or a contributory of the company in liquidation
• The court must consider the rights of innocent third parties who acquired an interest in the property in good faith and for value before deciding whether to make an order
• These powers do not replace other legal remedies available to the liquidator, including the right to trace assets, and do not apply to ordinary business transactions covered by the unfair preference rules in section 604