Fraudulent preference: tribunal may invalidate pre-winding transfers and restore creditor positions under the six-month rule. Where, within six months before a winding-up application, a company places a creditor, surety, or guarantor in a better position than they would have been in liquidation, the Tribunal may declare the transaction a fraudulent preference, invalidate transfers, deliveries, payments or executions, and order restoration of the parties to the position they would have occupied absent the preference.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Fraudulent preference: tribunal may invalidate pre-winding transfers and restore creditor positions under the six-month rule.
Where, within six months before a winding-up application, a company places a creditor, surety, or guarantor in a better position than they would have been in liquidation, the Tribunal may declare the transaction a fraudulent preference, invalidate transfers, deliveries, payments or executions, and order restoration of the parties to the position they would have occupied absent the preference.
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