Section 324: Transaction with debtor for inadequate or excessive consideration
consolidated text (as at 2017, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
324. Transaction with debtor for inadequate or excessive consideration
(1) Where, within the specified period, a debtor has acquired a business
or property from, or the services of—
(a) a person who was, at the time of the acquisition, a nominee or
relative of or a trustee for, or a trustee for a relative of the
debtor, or in the case of a debtor that is a company, a director
of the company;
(b) in the case of a debtor that is a company, a person or a relative
of a person who, at the time of the acquisition, had control of
the company;
(c) in the case of a debtor that is a company, another company that
was, at the time of the acquisition, controlled by a director of
the company, or a nominee or relative of or a trustee for, or a
trustee for a relative of a director of the company; or
(d) in the case of a debtor that is a company, another company that
was, at the time of the acquisition, a related company,
the Official Receiver or the liquidator may recover from the person, relative,
company or related company, as the case may be, any amount by which the
value of the consideration given for the acquisition of the business, property,
or services exceeded the value of the business, property or services at the
time of the acquisition.
(2) Where, within the specified period, a debtor has disposed of a business or property, provided a guarantee or services, or, in the case of a
debtor that is a company, has issued shares, for the benefit of—
(a) a person who was, at the time of the disposition, provision or
issue a nominee or relative of or a trustee for or a trustee for a
relative of the debtor or in the case of a company, a director of
the company;
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Revised Laws of Mauritius
(b) in the case of a debtor that is a company, a person or a relative
of a person who, at the time of the disposition, provision or issue, had control of the company;
(c) in the case of a debtor that is a company, another company that
was, at the time of the disposition, provision or issue, controlled
by a director of the company or a nominee or relative of or a
trustee for or a trustee for a relative of a director of the company; or
(d) in the case of a debtor that is a company, another company
that, at the time of the disposition, provision or issue, was a related company,
the Official Receiver or the liquidator may recover from the person, relative,
company or related company, as the case may be, any amount by which the
value of the business, property or services, or the value of shares at the time
of the disposition, provision or issue exceeded the value of any consideration
received by the debtor.
(3) For the purposes of this section—
(a) the value of a business or property includes the value of any
goodwill attaching to the business or property;
(b) section 5 of the Companies Act applies with such modifications
as may be necessary to determine control of a company; and
(c) “specified period” means the period of 2 years before the date of
adjudication or commencement of the winding up.