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<h1>Fraudulent preference: preferential transfers to creditors can be invalidated and reversed to restore insolvency positions.</h1> A company gives a fraudulent preference if it places a creditor, surety or guarantor in a better position for liquidation by doing or suffering an act; where such preferential transfers or payments occur within the prescribed pre-winding up period the Tribunal may declare the transaction invalid and order restoration to the position that would have existed but for the preference.