296DAdditional provisions relating to setting aside dispositions

1. The setting aside of a disposition or an order made under section 296C does not affect the title or interest of a person in property that the person has acquired—

2. from a person other than the company; and
3. for valuable consideration; and
4. without knowing the circumstances in which the property was acquired from the company.

5. The setting aside of a charge or an order made under section 296C does not affect the title or interest of a person in property that the person has acquired—

6. as the result of the exercise of a power of sale by the mortgagee of the charge; and
7. for valuable consideration; and
8. without knowing the circumstances relating to the giving of the charge.

9. A court must not order the recovery of property of a company (or its equivalent value) by a liquidator, whether under this Act, any other enactment, or in law or in equity, if the person from whom recovery is sought (A) proves that when A received the property—

10. A acted in good faith; and
11. a reasonable person in A's position would not have suspected, and A did not have reasonable grounds to suspect, that the company was, or would become, insolvent; and
12. A gave value for the property or altered A's position in the reasonably held belief that the transfer of the property to A was valid and would not be set aside.

13. Nothing in the Land Transfer Act 2017 restricts the operation of this section or sections 296A to 296C.

Notes

• Section 296D: inserted, on 1 September 2020, by section 53 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).