How have the courts interpreted intent to delay or defeat creditors in a transaction where assets were exchanged for shares which were not effectively exigible?
British Columbia, Canada
The following excerpt is from 5240 Investments Ltd. v. Great Eagle Resources Ltd., 2013 BCSC 35 (CanLII):
In [Chan v. Stanwood, 2002 BCCA 474, 6 B.C.L.R. (4th) 273] the intent to delay or defeat creditors was inferred at trial from evidence that “exigible assets” were exchanged “for shares” which were “not effectively exigible”. The defendants’ intent to put assets beyond the reach of their creditors was inferred from the effect of the transaction, and despite the fact that the defendants acted on professional advice.
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