The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:
It is possible for a claim to be brought under section 423 of the Insolvency Act 1986 (IA 1986) against a company or individual following a transaction at an undervalue (TUV) which was undertaken with the purpose of putting assets beyond the reach of creditors. While this bears similarities with a TUV under IA 1986, s 238 (in the context of corporate insolvency) and IA 1986, s 339 (in the context of personal insolvency), there are marked differences in terms of who may bring the claim, what circumstances must exist, and the timing of the claim and the transaction in question.
A claim under IA 1986, s 423 is one of a number of claims usually referred to as 'antecedent transactions'. For more details on antecedent transactions, see Practice Notes:
Antecedent transaction claims by an office-holder in liquidation or administration
Unwinding unlawful transactions in bankruptcy
IA 1986, s 423 applies to both individuals and companies. Importantly, recovery under IA 1986, s 423 need not necessarily involve formal insolvency proceedings, and it is not a requirement that the 'transferor' in the TUV was insolvent at the time of the transaction, or became insolvent as a consequence of it. Therefore the look back period restrictions applicable to TUV claims under IA 1986, ss 238 and 339 do not apply to claims brought under IA 1986,
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