What is the purpose of the Statute of Elizabeth and the Fraudulent Preferences Act?

Krumm v. McKay, 2003 ABQB 437 succinctly explains the purpose of these statutes: The purpose of the Statute of Elizabeth and the Fraudulent Preferences Act is to strike down all conveyances of property made with the intention of defrauding creditors, except for conveyances made for good consideration and bona fide to persons not having notice of the fraud. The legislation is to be interpreted liberally, and includes any kind of transfers or conveyances made with the requisite intent to defraud or hinder creditors, no matter what the form. Para. 13.

To prove a fraudulent conveyance there must be a conveyance with a fraudulent intent and a conveyance against creditors. Dealing first with fraudulent intent, when a transfer involves nominal consideration an applicant need only show that the transferor intended fraud. There are two ways of showing fraudulent intent: first as a presumption of law, and second as a fact in evidence. (Krumm v. McKay, para. 14)