Singapore legislation
Section 226
Section 226
Relevant time under sections 224 and 225
(1)
Subject to this section, the time at which a company enters into a transaction at an undervalue or gives an unfair preference is a relevant time if the transaction is entered into or the preference given —
in the case of a transaction at an undervalue — within the period starting 3 years before the commencement of the judicial management or winding up (as the case may be) and ending on the date of the commencement of the judicial management or winding up, as the case may be;
in the case of an unfair preference which is not a transaction at an undervalue and which is given to a person who is connected with the company (otherwise than by reason only of being the company’s employee) — within the period starting 2 years before the commencement of the judicial management or winding up (as the case may be) and ending on the date of the commencement of the judicial management or winding up, as the case may be; and
in any other case of an unfair preference — within the period starting one year before the commencement of the judicial management or winding up (as the case may be) and ending on the date of the commencement of the judicial management or winding up, as the case may be.
(2)
Where a company enters into a transaction at an undervalue or gives an unfair preference at a time mentioned in subsection (1)(a), (b) or (c), that time is not a relevant time for the purposes of sections 224 and 225 unless the company —
is unable to pay its debts at that time within the meaning of section 125(2); or
becomes unable to pay its debts within the meaning of section 125(2) in consequence of the transaction or preference.
(3)
Where a transaction is entered into at an undervalue by a company with a person who is connected with the company (otherwise than by reason only of being the company’s employee), the requirements under subsection (2) are presumed to be satisfied unless the contrary is shown.
(4)
Despite subsection (1), the time at which a company enters into a transaction at an undervalue or gives an unfair preference is a relevant time if the transaction is entered into or the preference given during the period starting on the date of the commencement of the judicial management in respect of the company and ending on the date the company entered judicial management.
(5)
Where any period mentioned in subsection (6) in respect of a company coincides with any period mentioned in subsection (1)(a), (b) or (c) in respect of that company, the time at which a transaction at an undervalue is entered into or an unfair preference is given by that company is a relevant time if that transaction is entered into or that preference is given during the period immediately before that period mentioned in subsection (1)(a), (b) or (c) (as the case may be) that is equal to the sum of all such periods mentioned in subsection (6) coinciding with the period mentioned in subsection (1)(a), (b) or (c), as the case may be.
(6)
The periods mentioned in subsection (5) are any of the following:
the automatic moratorium period mentioned in section 64(8);
the period during which an order under section 64(1)(a) is in force in relation to the company, including any extension of that period under section 64(7);
the period during which an order under section 65(1)(a) is in force in relation to the company, including any extension of that period under section 65(5);
the period during which an order under section 210(10) of the Companies Act 1967 is in force in relation to the company.