Lords amendment:No. 37, in page 70, line 2, after "charge" insert —
"(aa) the value of so much of that consideration as consists of the discharge or reduction, at the same time as, or after, the creation of the charge, of any debt of the company;"
I beg to move, That this House doth agree with the Lords in the said amendment.
With this it will be convenient to discuss Lords amendments Nos. 38 to 40.
It has been established in the 1965 cases of the Yeovil Glove Company Ltd. and Thomas Mortimer Ltd. that, where a company instructs a third party to make a payment to a creditor of the company, the payment is deemed to have been made to the company. The provisions of clause 87 in no way alter the existing legislation. Our initial view was that, in the light of the case law, there was no need to deal with the matter in the clause. However, we reconsidered the position and concluded that there was no overriding objection to specifying the position in the statute, as was desired by a noble Lord in another place and by certain of those with whom we consulted. These amendments achieve that purpose.
Question put and agreed to.
Lords amendments Nos. 38 to 48 agreed to.