Section 446, The Companies Act, 2009

(1) Subject to subsection (2), if a company that is inliquidation is unable to meet all its debts, the court, on the application of the liquidator may order that a security or charge or part of it created by the company over any of its properties or undertaking in favour of– (a) a person who was, at the time the security or charge was created a director of the company or a nominee or relative of or a trustee for a relative of a director of the company; (b) a person or a relative of a person who at the time when the security or charge was created had control of the company; (c) another company that was when the security or charge was created controlled by a director of the company or a nominee or relative of or a trustee for a relative of a director of the company ; 314 315 Court to set aside certain securities and (d) another company that at the time when the security or charge was created was a related company, shall so far as any security on the property or undertaking is conferred be set aside as against the liquidator of the company if the court considers that having regard to the circumstances in which the security or charge was created the conduct of the person relative company or related company as the case may be in relation to the affairs of the company and any other relevant circumstances it is just and equitable to make the order. (2) Subsection (1) does not apply to a security or charge that has been transferred by the person in whose favour it was originally created and has been purchased by another person (whether or not from the first mentioned person) if– (a) at the time of the purchase, the purchaser was not a person specified in any of paragraphs (a) to (d) of that subsection; and (b) the purchase was made in good faith and for valuable consideration. (3) The court may make such other orders as it thinks proper for the purpose of giving effect to an order under this section.