This sounds tempting, especially if you sell them at a knockdown price to the other company. But this action may be a breach of s238 of the Insolvency Act 1986 – Transactions at Undervalue.
It sometimes happens that directors overlook or even fail to disclose all the company’s property to a liquidator. Consequently, the Insolvency Act 1986 gives a liquidator wide powers to assist his/her investigations into a company’s affairs in order to maximise creditor’s interests.
s238 section applies in the case of a company where –
(a) the company enters administration or
(b) the company goes into liquidation and “the office-holder” means the administrator or the liquidator, as the case may be.
Where the company has at a relevant time…
