Fraudulent Preferences - Definition - Law Dictionary Home Dictionary Definition fraudulent-preferences

Definition :

Fraudulent preferences. Every conveyances or tran-sfer of property or charge thereon made, every payment made, every obligation incurred, and every judicial proceeding taken or suffered by any person unable to pay his debts as they became due from his own moneys, in favour of any creditor, with a view of giving such creditor a preference over other creditors, is fraudulent and void as against the trustee in bankruptcy if the debtor becomes bankrupt within three months, Bankruptcy Act, 1914, s. 44; and see Companies Act, 1925, s. 265, in regard to winding-up of companies.