Andry transferred his table-making business to Andry Ltd, initially run as a sole proprietorship. The company was incorporated with members comprising himself and his family. The price for such a transfer was paid from the company to Andry by way of shares and debentures having a floating charge (security against debt) on the company's assets. Later, when the company's business failed and went into liquidation, Andry's right of recovery against the debentures stood before the claims of unsecured creditors, who would have recovered nothing from the liquidation proceeds. To avoid