| Commentary

10.3 Preferences

| Commentary

10.3 Preferences

A company gives a preference to a person if:

  1. 10.3.1

        that person is one of the company’s creditors or a surety or guarantor for any of the company’s debts or other liabilities; and

  2. 10.3.2

        the company does anything or suffers anything to be done which has the effect of putting that person into a position which, in the event of insolvent liquidation, will be better than the position he would have been in otherwise1.

A preference is not impeachable unless the company was influenced in deciding to give it by a desire to prefer2. Nor is it impeachable unless:

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