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ARTICLE · 09 MARCH 2015

Fraudulent Conveyance, Void As Against Creditors

Sole director allowed redemption of his preference shares in closely-held private corporation at nominal amount and then became bankrupt.

CanadaLitigation, Mediation & Arbitration

Jonas v. McConnell 2014 Ont SCJ
Sole director allowed redemption of his preference shares in closely-held private corporation at nominal amount and then became bankrupt. He was held to have engaged in a fraudulent conveyance since consideration was deemed to be grossly inadequate. Redemption was declared void as against creditors.

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