Types of Voidable Transactions | Rodgers Reidy

1. TYPES OF VOIDABLE TRANSACTIONS | RODGERS REIDY 1. UNFAIR PREFERENCES These types of transactions relate to where a Company pays a creditor, of an unsecured debt, and the creditor ultimately receives more than they would have if the transaction was set aside and\ they proved as a creditor in the liquidation. 2. UNCOMMERCIAL TRANSACTIONS A transaction is deemed uncommercial if a reasonable person wouldn’t have agreed to enter into it after having regards to the benefits obtained and / or detriment suffered by the Company and other involved parties 3. INSOLVENT TRANSACTIONS A transaction is categorised as insolvent if it exhibits unfair preferences, is uncommercial when the Company was insolvent, or if the Company became insolvent as a direct result. 4. UNFAIR COMPANY LOANS A loan becomes unfair if its interest or charges were extortionate at its inception or if they became so due to modifications. 5. UNREASONABLE DIRECTOR- RELATED TRANSACTIONS These are transactions that wouldn’t be approved by a reasonable person given the advantages and disadvantages to the company and other parties 6. COURT ORDERS The Liquidator commence proceedings through the Courts to make orders under Section 588FF of the Act. If the Court deems a transaction voidable. If you’ve received communication from a Liquidator regarding a potential voidable transaction claim, seek advice by reaching out to Rodgers Reidy. www.rodgersreidy.com www.rodgersreidy.com 1300 747 577 1300 747 577