COMPANIES ACT, 1929

687

(¢) of subsection (1) of this section formal proof thereof shall not
be required except in so far as is otherwise provided by general rules.

(6) In the event of a landlord or other person distraining or
having distrained on any goods or effects of the company within
three months next before the date of a winding-up order, the debts
to which priority is given by this section shall be a first charge on
the goods or effects so distrained on, or the proceeds of the sale
thereof :

Provided that, in respect of any money paid under any such
charge, the landlord or other person shall have the same rights of
priority as the person to whom the payment is made.

(7) In this section the expression “the relevant date” means—

(a) in the case of a company ordered to be wound up com-
pulsorily which had not previously commenced to be
wound up voluntarily, the date of the winding-up order;
and
in any other case, the date of the commencement of the
winding up.

(b)

Effect of Winding Up on antecedent and other Transactions.
265.—(1) Any conveyance, mortgage, delivery of goods, payment,
execution, or other act relating to property which would, if made or
done by or against an individual, be deemed in his bankruptcy a
fraudulent preference, shall, if made or done by or against a company,
be deemed, in the event of its being wound up, a fraudulent prefer-
ence of its creditors, and be invalid accordingly.

Fraudulent
preference.

(2) For the purposes of this section, the commencement of the
winding up shall be deemed to correspond with the presentation of
the bankruptcy petition in the case of an individual.
(3) Any conveyance or assignment by a company of ail its
property to trustees for the benefit of all its creditors shall be void to
all intents.
(4) In the application to Scotland of this section, the expression
“fraudulent preference’ includes any alienation or preference
which is voidable by statute or at common law on the ground
insolvency or notour bankruptcy, and the expression ‘bankrm
petition’ means petition for sequestration.
266. Where a company is being wound up, a floating charge on Egfiect of foating
the undertaking or property of the company created within six charge.
months of the commencement of the winding up shall, unless it is
proved that the company immediately after the creation of the
charge was solvent, be invalid, except to the amount of any cash
paid to the company at the time of or subsequently to the creation
of, and in consideration for, the charge, together with interest on
that amount at the rate of five per cent. per annum.