Actions Against Directors - Voidable Transactions
The idea behind the legislation is to stop unsecured creditors from be prejudiced by the disposition of assets or the assumption of liabilities before a winding up.
The Court can make a range of orders that include compensation or a re-transfer of property and the application is usually made by the liquidator.
Such applications concern: -
- Unfair Preferences;
- Uncommercial Transactions;
- Unfair Loans;
- Transactions intended to obstruct creditor's rights;
- Unreasonable director related transactions.
Voidable Transaction - Disputes
Such disputes can involve: -
- questions about the applicable time limits;
- whether a transaction was an unfair preference;
- whether a transaction was an uncommercial transaction;
- whether a transaction was an unfair loan;
- whether the transaction was entered into with the purpose of defeating creditor's rights;
- Etc.
Let Us Help You
- understand the elements of the cause of action;
- your rights to defend such a claim (if any).
* This content does not purport to give legal advice. Readers must obtain their own legal advice, that applies to the particular circumstances of their case, before taking any action at all.