Deeming of transfer-related payments as trust receipts affects recovery and characterisation of excess consideration and preserves disclosure safeguards. Payments made pursuant to arrangements connected to a transfer, made within prescribed timeframes and where the company or transferee was privy, are deemed to have been received in trust for recovery purposes; excess price or other valuable consideration given to retiring or abolished-office directors is treated as compensation for loss of office or retirement, while bona fide damages and pension-type payments are excluded and disclosure obligations remain preserved.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Deeming of transfer-related payments as trust receipts affects recovery and characterisation of excess consideration and preserves disclosure safeguards.
Payments made pursuant to arrangements connected to a transfer, made within prescribed timeframes and where the company or transferee was privy, are deemed to have been received in trust for recovery purposes; excess price or other valuable consideration given to retiring or abolished-office directors is treated as compensation for loss of office or retirement, while bona fide damages and pension-type payments are excluded and disclosure obligations remain preserved.
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