{
  "url": "https://openlegislation.uk/insolvency-scotland-rules-1986/rule-4.38",
  "json_url": "https://openlegislation.uk/insolvency-scotland-rules-1986/rule-4.38.json",
  "legislation": "uksi/1986/1915",
  "legislation_title": "The Insolvency (Scotland) Rules 1986",
  "legislation_url": "https://openlegislation.uk/insolvency-scotland-rules-1986",
  "path": "rule/4.38",
  "kind": "rule",
  "number": "4.38",
  "heading": "Power of court to set aside certain transactions",
  "text": "(1) If in the course of the liquidation the liquidator enters into any transaction with a person who is an associate of his, the court may, on the application of any person interested, set the transaction aside and order the liquidator to compensate the company for any loss suffered in consequence of it.\n(2) This does not apply if either -\n(a) the transaction was entered into with the prior consent of the court, or\n(b) it is shown to the court's satisfaction that the transaction was for value, and that it was entered into by the liquidator without knowing, or having any reason to suppose, that the person concerned was an associate.\n(3) Nothing in this Rule is to be taken as prejudicing the operation of any rule of law with respect to a trustee's dealings with trust property, or the fiduciary obligations of any person.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [
    {
      "type": "applied 2016 asp 21 s. 14B (as inserted)",
      "affecting": "ssi/2017/210",
      "affecting_title": "The Insolvency (Regulation (EU) 2015/848) (Miscellaneous Amendments) (Scotland) Regulations 2017"
    },
    {
      "type": "applied (with modifications)",
      "affecting": "uksi/2009/806",
      "affecting_title": "The Building Society Special Administration (Scotland) Rules 2009"
    },
    {
      "type": "applied (with modifications)",
      "affecting": "ssi/2001/128",
      "affecting_title": "Limited Liability Partnerships (Scotland) Regulations 2001"
    },
    {
      "type": "specified provisions applied (with modifications)",
      "affecting": "uksi/2013/1388",
      "affecting_title": "The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013"
    },
    {
      "type": "applied (with modifications)",
      "affecting": "uksi/2010/2584",
      "affecting_title": "The Building Society Insolvency (Scotland) Rules 2010"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1986/1915/rule/4.38",
    "retrieved_at": "2026-10-29T16:39:01.712831+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}