Section 242(4)

On a challenge being brought under subsection (1), the court shall grant decree of reduction or for such restoration of property to the company’s assets or other redress as may be appropriate; but the court shall not grant such a decree if the person seeking to uphold the alienation establishes— that immediately, or at any other time, after the alienation the company’s assets were greater than its liabilities, or that the alienation was made for adequate consideration, or that the alienation— which, having regard to all the circumstances, it was reasonable for the company to make: was a birthday, Christmas or other conventional gift, or was a gift made, for a charitable purpose, to a person who is not an associate of the company, Provided that this subsection is without prejudice to any right or interest acquired in good faith and for value from or through the transferee in the alienation.

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Source: legislation.gov.uk · retrieved 2026-09-04