Use the fact situation in Q2 to answer the related question that follows. Assume that the company was located in Ontario.In order to recover the assets of General Widgets that George transferred to the new company,the trustee in bankruptcy would

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The trustee in bankruptcy can ask the court to set aside the transaction as being a fraudulent conveyance in order to recover the assets transferred by George to the new company. This is because the transfer of assets could be seen as an attempt to evade the claims of creditors, which is a fraudulent conveyance under the Bankruptcy and Insolvency Act. The trustee would need to prove that the transfer was made with the intention of defeating or delaying the claims of creditors.

Use the Fact Situation in Q2 to Answer the Related