If a business experiences financial difficulty and becomes insolvent, the appointed officeholder scrutinises the companys financial affairs to identify whether antecedent transactions have been made.
These are transactions conducted before, or at the time of insolvency, and are typically associated with fraudulent activity or attempts to avoid repaying the companys creditors the monies they are due.
The nature of antecedent transactions deliberately made at a time when the company cannot support its required outgoings and liabilities makes them a causal factor in the organisations poor financial situation.
What is a property transaction at an undervalue?
A property transaction at an undervalue is a type of antecedent transaction and in…
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