Commentary

246 Transactions at an undervalue and transactions defrauding creditors

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

246 Transactions at an undervalue and transactions defrauding creditors

| Commentary

246 Transactions at an undervalue and transactions defrauding creditors

The court has power to set aside certain transactions entered into by a company at an undervalue where that company subsequently goes into compulsory liquidation or administration1. In addition, the court may set aside certain transactions which have been entered into for the purpose of putting the company’s assets beyond the reach of its creditors or other claimants2.

Where a reorganisation is submitted for approval by the court under Sections 895 to 901 of the Companies Act 2006, the court will not sanction the scheme unless it is satisfied that all the

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