| Commentary

225 Transactions defrauding creditors

| Commentary

225 Transactions defrauding creditors

Where the reorganisation falls outside the two-year time limit for transactions at an undervalue, or where the company in question has not gone into administration or liquidation, the court may still set the transaction aside under Section 423 of the Insolvency Act 1986. It may do so if it considers that the transaction was entered into with the intent of putting the company’s assets beyond the reach of its creditors and claimants against it, or otherwise prejudicing the interests of such creditors or claimants. One of the obstacles to an application under Section 423 succeeding

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial