The statutory powers to unwind transactions a company entered before insolvency — recovering value given away, paid out or charged when creditors should have come first.
A company sliding towards insolvency can strip itself of value long before an officeholder is appointed, and these provisions exist to pull that value back into the estate. This chapter opens with the framework common to all the claims — who may apply, the cash flow and balance sheet tests of insolvency, and why connected person status shifts look-back periods and presumptions. It then works through transactions at an undervalue and the good faith defence, preferences and the desire to prefer, and how the two claims are distinguished from one another. It closes with floating charges invalidated for want of new consideration, and transactions defrauding creditors — the one claim that needs no formal insolvency at all.
