Commentary on Sections Winding up in England & Wales and Scotland Section 427: Tainted gifts
569.Section 427 makes provision like that in sections 419, 422 and 425 for the situation where a tainted gift is made not by an individual but by a company. The purpose of the section is to ensure that where restraint or receivership action has been taken against property in the hands of the gift recipient, then the power to void the gift under the insolvency legislation cannot be exercised for as long as that action is underway.