72 Recovery of distributions made when company did not satisfy solvency test

(1) Where a distribution has been made to a member by a company and the
company did not, immediately after the distribution, satisfy the solvency
when company did not
test, then the distribution (or the value thereof) may be recovered by the
company from the member but only if —

(a) the member received the distribution or the benefit of the
distribution (as the case maybe) other than in good faith and
without knowledge of the company‘s failure to satisfy the solvency
test;

(b) the member‘s position has not been altered by the member relying
on the validity of the distribution; and

(c) it would not be unfair to require repayment in full or at all.


(2) Where a distribution has been made to a member or members by a
company and the company did not, immediately after the distribution,
satisfy the solvency test, then, a director who failed to take reasonable steps
to ensure that the distribution was made in accordance with section 70, or,
in the case of a protected cell company, section 71, shall be personally
liable to the company to repay to the company so much of the distribution
as is not able to be recovered from members.

(3) If, in an action brought against a director or member under this section, the
Court is satisfied that the company could, by making a distribution of a
lesser amount, have satisfied the solvency test, the Court may —

(a) permit the member to retain; or

(b) relieve the director from liability in respect of, an amount equal
to the value of any distribution that could properly have been
made.