1E9Ct5D

ii.Transaction at an undervalueThe insolvency administrator can challenge a gift or other disposition of property forless than market value. The “look back” period is within two years prior to thecommencement of the insolvency proceeding, and again the office holders mustprove that the company was insolvent at the time of the transaction, or renderedinsolvent as a result of the transaction.iii.Transactions putting assets beyond the reachof creditorsThis is very similar to transactions at an undervalue, except there is no defined “lookback” period. The affected part or office holder must prove that the “dominantintention” of the company was to remove assets from the reach of creditors.iv.MisfeasanceMisfeasance is usually alleged against directors for any breach of their fiduciary orany other duty owed to the company.v. Wrongful tradingA director of an insolvent company can be made personally liable for the debts of thecompany if the director continues to trade while the company is hopelessly insolvent.8. Creditors and Claimsa. GermanyA creditor’s rights against the insolvency estate depends on the type of claim thecreditor holds. A creditor with a secured claim has the right to demand the24