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insolvent transaction entered with the purpose of defeating creditors, 51 an unfair
loan 52 and unreasonable director-related transactions. 53
The Australian Corporations Act 2001 also specifies the nature of recovery a
liquidator could obtain in section 588FF. Among the orders the court can make are to
pay an amount equal to some or all the company had paid for, 54 to restore the
property to the company, 55 to pay an amount in the court‘s opinion fairly
representing the benefit received from the transaction, 56 or any other orders under the
provisions. 57 The courts in the UK have powers to make orders as stated in section
241 of the Insolvency Act 1986 and the orders are generally the same as those
conferred on the Australian courts. In both preference 58 and undervalue
50
See section 588FE(4) of the Australian Corporations Act 2001: ―The transaction is voidable if:
(a) it is an insolvent transaction of the company; and
(b) a related entity of the company is a party to it; and
(c) it was entered into, or an act was done for the purpose of giving effect to it, during the 4 years
ending on the relation-back day.‖
51 See section 588FE(5) of the Australian Corporations Act 200:1 ―The transaction is voidable if:
(a) it is an insolvent transaction of the company; and
(b) the company became a party to the transaction for the purpose, or for purposes including the
purpose, of defeating, delaying, or interfering with, the rights of any or all of its creditors on a
winding -up of the company; and
(c) the transaction was entered into, or an act done was for the purpose of giving effect to the
transaction, during the 10 years ending on the relation-back day.‖
52 See section 588FE(6) of the Australian Corporations Act 2001: ―The transaction is voidable if it is
an unfair loan to the company made at any time on or before the day when the winding up began.‖
53 See section 588FE(6A) of the Australian Corporations Act 2001- ―The transaction is voidable if:
(a) it is an unreasonable director-related transaction of the company; and
(b) it was entered into, or an act was done for the purposes of giving effect to it:
(i) during the 4 years ending on the relation-back day; or
(ii) after that day but on or before the day when the winding-up began.‖
54 Section 588FF(a) of the Australian Corporations Act 2001.
55 Section 588FF(b) of the Australian Corporations Act 2001.
56 Section 588FF(c) of the Australian Corporations Act 2001.
57 Sections 588FF (d)-(j) of the Australian Corporations Act 2001.
58 See section 239(3) of the UK Insolvency Act 1986.
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