Clause 34

by deleting the words “in good faith, for value and without notice of the relevant circumstances” in subsection (3)(a) and (b) and substituting in each case the words “in good faith and for value”;

by inserting, immediately after subsection (3), the following subsection:“(3A) For the purposes of subsection (3)(a) and (b), a person (called in this section the relevant person) who has acquired an interest in property from a person other than the individual in question, or who has received a benefit from the transaction or unfair preference, is presumed (unless the contrary is shown) to have acquired the interest or received the benefit (as the case may be) otherwise than in good faith if, at the time of the acquisition or receipt —

the relevant person had notice of the relevant surrounding circumstances and of the relevant proceedings; or

the relevant person was an associate of, or was connected with —

the individual in question; or

the person with whom the individual in question entered into the transaction, or to whom the individual gave the unfair preference, as the case may be.”; and

by deleting subsection (5) and substituting the following subsections:“(5) For the purposes of subsection (3A)(a), the relevant surrounding circumstances are —

the fact that the individual in question entered into the transaction at an undervalue; or

the circumstances which amounted to the giving of the unfair preference by the individual in question.(6) For the purposes of subsection (3A)(a), the relevant person has notice of the relevant proceedings if the relevant person has notice of —

the making of the bankruptcy application on which the individual in question is adjudged bankrupt; or

the fact that the individual in question has been adjudged bankrupt.(7) Despite section 101(1), for the purposes of subsection (3A)(b)(ii), a company is regarded as an associate of another company if —

the same person controls both companies;

a person controls one company and either an associate of that person controls, or that person and the associate control, the other company; or

each company is controlled by a group of 2 or more persons, and the groups —

consist of the same persons; or

can be regarded as consisting of the same persons if (in one or more cases) a member of either group is replaced by an associate of that member.(8) For the purposes of subsection (3A)(b), the relevant person is connected with a company if the relevant person —

is a director of the company; or

is an associate of —

the company; or

a director of the company.(9) In subsection (8), “director” has the same meaning as in section 4(1) of the Companies Act (Cap. 50).”.