4838

Kesponsi-
tility of

direetors ter

fraudulent
tracing.

Ch. 31. No. 1.] Compantes.

 

 

in the case of goods sold by way of ordinary retail trade)
of all goods sold and purchased, showing the goods and the
buyers and sellers thereof in sufficient detail to enable those
goods and those buyers and sellers to be identified.

260. (1) Hf in the course of the winding up of a company
it appears that any busine. ef the company has been
‘arried on with intent to defraud creditors of the company
or creditors of any other person or for any fraudulent
purpose, the Court, on the application of the Official
Receiver, or the liquidator or any creditor or contributory
of the company, may, if it thinks proper so to do, declare
that any of the directors, whether past or present, of the
company who were knowingly parties to the carrying on of
the busine. in) manner atoresaid shall be personally;
responsible, without any limitation of Hability for all or
any of the debts or other liabilities of the company as the
Court may direct.

(2) Where the Court makes any such declaration, it
may give such further directions as it thinks ptoper for the
purpose of giving effect to that declaration, and in particular
may make provision for making the hability of any such
director under the declaration a charge on any debt or
obligation due from the company to him, or on any mort

gage or charge or any interest in any mortgage or charge on
any assets of the company held by or vested in him, or any
company or person on his behalf, or any person claiming
as assignee from or through the director, company or person,
and may from time to time make such further order as may
be necessary for the purpose of enforcing any charge imposed
under this subsection,
For the purpose of this subsection, the expression
assignee Includes any person to whom or in whose
favour, by the directions of the director, the debt, obliga-
tion, mortgage or charge was created, issued or transferred
or the interest created, but does not include an assignee
for valuable consideration (not including consideration by
way of marriage) given in good faith and without notice of
any of the matters on the ground of which the declaration
is made

(3) Where any business of a company is carried on
with such intent or for such purpose as is mentioned in