The Corporations Act Provides a Creditor with a Defence If

Multiple Choice

The Corporations Act provides a creditor with a defence if they receive a demand from a liquidator for the return of property or money transferred or paid to them by an insolvent company. Which of the following is NOT one of the conditions of the defence?

A) They acted in good faith.
B) The creditor had no reasonable grounds to suspect the company was insolvent.
C) The transaction was entered into after the relation-back day.
D) They had given valuable consideration under the transaction.