Fraudulent conveyances and corporations

The prohibition against fraudulent conveyances in general operates with respect to corporations in the same manner as against real persons. A fraudulent conveyance may be said to consist in the transfer of assets by the corporation with "the intent or with the effect of hindering, delaying, or defrauding creditors." An instance of fraudulent conveyance peculiar to corporations is the payment of a dividend which renders it insolvent. Dividends, however, are probably a relatively unimportant instance of fraudulent conveyances. The Uniform Fraudulent Conveyance Act has simplified and expedited the remedies of creditors where fraudulent conveyances are demonstrated and proven, and the Act, of course, applies to corporate debtors as well as others. This statute which has been enacted by many states apparently permits the creditor to levy directly upon assets fraudulently conveyed-without the former necessity of first having them returned to the debtor-and then to follow the regular procedure in law and equity for the collection of claims already described.