BODIES CORPORATE (OFFICIAL LIQUIDATIONS) ACT - 1963 (ACT 180)

Section - 31 - Repayment of Gifts

(1) Where it appears to the liquidator that the company made any disposition of its property otherwise than for full value or in settlement of any due debt or incurred any obligation otherwise than for full value,

(a) during the two years ending with the making of the winding up order, or

(b) more than two years but less than ten years before the making of the winding up order and at a time when the company was insolvent,

the liquidator shall give notice to the person to whom the disposition was made or for whose benefit the obligation was incurred requiring that person, within the period specified in the notice, to restore to the liquidator, whether by payment of money, transfer of property or surrender of rights, the excess of the benefit which thereby accrued to him above the value of any consideration provided.

(2) Excess benefit restored under this section shall, save where a director of a company commits a breach of duty under the provisions of sections 203 to 205 of the Companies Code, 1963 (Act 179), be treated as a provable debt in respect of which a proof may be lodged at any time within one month after its restoration.