Commentary

Interests Defeasible on Liquidation

Part XIII Liquidation
| Commentary

Interests Defeasible on Liquidation

| Commentary

Interests Defeasible on Liquidation

The liquidating company may have held property on terms that insolvency would bring the interest to an end. The transfer of an asset on the condition that it will revest in the transferor in the event of the transferee's insolvency is generally invalid as contrary to the anti-deprivation principle,1 which operates to prevent an insolvent company from being deprived of an asset that would otherwise be available for the benefit of its creditors. The Court of Appeal in Lomas v JFB Firth Rixson Inc2 stated that: 'The anti-deprivation principle therefore protects the value of the

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