Section 296 — Companies Act 1993: Additional provisions relating to setting aside transactions and charges

296 Additional provisions relating to setting aside transactions and charges (1) The setting aside of a transaction or an order made under section 295 of this Act does not affect the title or interest of a person in property which that person has acquired— (a) From a person other than the company; and (b) For valuable consideration; and (c) Without knowledge of the circumstances under which the property was acquired from the company. (2) The setting aside of a charge or an order made under section 295 of this Act does not affect the title or interest of a person in property which that person has acquired— (a) As the result of the exercise of a power of sale by the grantee of the charge; and (b) For valuable consideration; and (c) Without knowledge of the circumstances relating to the giving of the charge. (3) A court must not order the recovery of property of a company (or its equivalent value) by a liquidator, whether under this Act, any other enactment, or in law or in equity, if the person from whom recovery is sought ( A ) proves that when A received the property— (a) A acted in good faith; and (b) a reasonable person in A's position would not have suspected, and A did not have reasonable grounds for suspecting, that the company was, or would become, insolvent; and (c) A gave value for the property or altered A's position in the reasonably held belief that the transfer of the property to A was valid and would not be set aside. (4) Nothing in the Land Transfer Act 1952 restricts the operation of this section or sections 292 to 295 of this Act. Section 296(3): substituted, on 1 November 2007, by section 31 of the Companies Amendment Act 2006 (2006 No 56).