corporate and fraudulent behaviour- preference and undervalue transaction

AAmara6y ago

Sir, thank you for your earlier support, i donot understand how preference and under value transaction are an offence? what does setting aside them means?

MikeLittleTutor6y ago#1

Hi If my private company is about to go into liquidation and, because you're a friend, I pay you, a creditor, before I declare liquidation, can you see that that would be a fraudulent preference? At any time, whether or not liquidation is involved, in my capacity as a director of a company, I arrange to sell a company asset to you for $500 whereas the book value of the asset is $600.000, can you see that that would be an illegal transaction? Particularly were I to put the company into liquidation shortly afterwards!!! OK?

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