Transactions defrauding creditors
438.—(1)  This section relates to any transaction entered into by a person (called in this section and section 439 the debtor) with another person at an undervalue.
(2)  For the purposes of subsection (1), a debtor enters into a transaction with another person at an undervalue if —
(a)the debtor makes a gift to the other person or the debtor otherwise enters into a transaction with the other person on terms that provide for the debtor to receive no consideration;
(b)the debtor enters into a transaction with the other person in consideration of marriage; or
(c)the debtor enters into a transaction with the other person for a consideration the value of which, in money or money’s worth, is significantly less than the value, in money or money’s worth, of the consideration provided by the debtor.
(3)  Where a debtor enters into a transaction at an undervalue, the Court may, if satisfied under subsection (4), make such order as the Court thinks fit for —
(a)restoring the position to what it would have been if the transaction had not been entered into; and
(b)protecting the interests of any person who is, or is capable of being, prejudiced by the transaction (called in this section a victim).
(4)  An order under subsection (3) may only be made if the Court is satisfied that a transaction at an undervalue was entered into by a debtor for the purpose —
(a)of putting assets beyond the reach of a person who is making, or may at some time make, a claim against the debtor; or
(b)of otherwise prejudicing the interests of any person in relation to a claim which the person is making or may make against the debtor.
(5)  An application for an order under subsection (3) must not be made in relation to a transaction except —
(a)in a case where the debtor has been adjudged bankrupt under Part 16, by the Official Assignee, the trustee in bankruptcy or (with the leave of the Court) a victim of the transaction;
(b)in a case where a victim of the transaction is bound by a voluntary arrangement approved under Part 14, by the nominee of the voluntary arrangement or by any person who (whether or not so bound) is such a victim;
(c)in a case where the debtor is a company that is being wound up under Part 8 or is in judicial management under Part 7, by —
(i)the Official Receiver;
(ii)the liquidator or judicial manager (whichever is applicable); or
(iii)a victim of the transaction; and
(d)in any other case, by a victim of the transaction.
(6)  An application made under subsection (5) is deemed to be made on behalf of every victim of the transaction.