CHAPTER
157
VALIDATION OF GRATUITOUS CONVEYANCES |
ARRANGEMENT OF
SECTIONS |
SECTION |
|
|
Validates certain gratuitous conveyances. |
Extinguishes certain adverse claims. |
Saving for bona fide purchaser for value
and in case of fraud. |
Act to apply to the Crown. |
CHAPTER 157 |
VALIDATION OF
GRATUITOUS CONVEYANCES |
An Act to
validate and confirm conveyances by companies of real and personal property
which have been made without any or any adequate consideration passing to the
companies making such conveyances. | 23 of 1966 |
[Commencement 12th
July, 1966] |
1. This Act may be cited as the Validation of
Gratuitous Conveyances Act. | Short title. |
2. In this Act unless the context otherwise requires- | Interpretation. |
"company"
means a company incorporated under theCompanies Act or registered
under the Companies Act; |
"conveyance"
includes a lease, mortgage and any other instrument purporting to effect the
transfer of any estate or interest in real or personal property from a company
to any person. |
3. Subject to the provisions of this section and of
section 5 of this Act, no conveyance heretofor or hereafter made by a company
shall be or be deemed to be or ever to have been ultra vires that
company by reason only that there was or is no or no adequate consideration
passing to such company in respect of such conveyance; and no title to any real
or personal property shall be or be deemed to be or ever to have been in any
respect invalid or defective by reason only that any such conveyance was ultra
vires as aforesaid: | Validates certain gratuitous conveyances. |
Provided that
nothing in this section shall be deemed to validate a conveyance for no or no
adequate consideration in any case in which such a transaction is expressly
prohibited by the terms of the Memorandum or Articles of Association of the
company in force at the time of making the conveyance. |
4. Subject to the provisions of section 5 of this Act,
any right or claim adverse to the grantee under any such conveyance as is
referred to in and validated by the provisions of section 3 of this Act, or to
his successors in title, which may have arisen or become vested in any person,
whether directly or indirectly, by reason of any such lack of consideration or
inadequate consideration is hereby extinguished. | Extinguishes certain adverse claims. |
5. (1) Nothing in this Act shall be construed to
validate any conveyance to the prejudice of the estate or interest in the
property to which it relates of a bona fide purchaser for value of any
such estate or interest without notice of any conveyance which but for this
subsection would be validated by section 3 of this Act, or the successors in
title of such purchaser. | Saving for bona fide purchaser for value and in
case of fraud. |
(2) Nothing in
this Act shall be construed to affect or restrict the power conferred by any
law upon any court to set aside or declare void any conveyance made with intent
to defraud the company making such conveyance or any shareholder in such
company or any creditor or other person entitled whether directly or indirectly
to any rights in or against any such company. |
6. This Act shall bind the Crown. | Act to apply to the Crown. |