Section 427: Tainted gifts, Proceeds of Crime Act 2002

In this section "company" means any company which may be wound up under the 1986 Act.

This section applies if—

an order for the winding up of a company is made or it passes a resolution for its voluntary winding up, and

it has made a tainted gift (whether directly or indirectly).

No order may be made under section 238, 239 or 423 of the 1986 Act (avoidance of certain transactions) and no decree may be granted under section 242 or 243 of that Act (gratuitous alienations and unfair preferences), or otherwise, in respect of the making of the gift at any time when—

any property of the recipient of the tainted gift is subject to a restraint order under section 41, 120 or 190, ...

such property is detained under or by virtue of section 44A, 47J, 47K, 47M, 47P, 122A, 127J, 127K, 127M, 127P, 193A, 195J, 195K, 195M or 195P,

there is in force in respect of such property an order under section 50, ... 128(3) or 198., or

there is in force in respect of such property an order under section 67A, 131A or 215A.

Any order made under section 238, 239 or 423 of the 1986 Act or decree granted under section 242 or 243 of that Act, or otherwise, after an order mentioned in subsection (3)(a), (b) or (c) is discharged must take into account any realisation under Part 2, 3 or 4 of this Act of property held by the recipient of the tainted gift.

A person makes a tainted gift for the purposes of this section if he makes a tainted gift within the meaning of Part 2, 3 or 4.

In a case where the winding up of a company commenced or is treated as having commenced before 29 December 1986 this section has effect with the substitution—

for references to section 239 of the 1986 Act of references to section 615 of the Companies Act 1985 (c. 6);

for references to section 242 of the 1986 Act of references to section 615A of the Companies Act 1985;

for references to section 243 of the 1986 Act of references to section 615B of the Companies Act 1985.

Section 427: Tainted gifts

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