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Preferences can include any payments
made by the insolvent company to any parties by the directors
who they a "desire to prefer".
Examples could include:
- Payments to related parties
- Payments to directors
- Payments to creditors who
are secured by a personal guarantee signed by a director
- Payments to creditors where
their services are needed in any re-start company of the
director.
The Liquidator has powers to recover
these preference payments through the Courts.
The time periods for reviewing such preferences
are: ·
- 2
years prior to the creditors meeting in relation to transactions
with parties connected to the company ·
- 6
months prior to the creditors meeting in relation to any
other transactions.
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