Appendix 3 – Legal Risks in Turnaround Finance
Important notice: This schedule is merely an indicative schedule of the additional legal issues of turnaround finance. It is illustrative only, and is not intended to be comprehensive. Specialist legal advice should be taken as part of all turnaround finance transactions.
Legal |
Legislation
IA CA And |
Explanation of circumstances giving rise to concern in Turnaround Finance |
Potential Risk (Y/N) |
|||
Transaction |
Personal |
Misconduct |
Litigation |
|||
Transaction |
s238 |
Transaction |
y |
n |
y |
y |
Preference |
s239 |
Transaction |
y |
n |
y |
y |
Extortionate |
s244 |
Transaction |
y |
n |
y |
y |
Avoidance |
s245 |
If |
y |
n |
n |
n |
Transactions |
s423 |
Transaction |
y |
n |
y |
y |
Substantial |
s320 |
Transactions |
y |
y |
y |
y |
Fraudulent |
s213 IA |
Trading |
y |
y |
y |
y |
Wrongful |
s214 |
Directors |
n |
y |
y |
y |
Restriction |
s216 |
Transaction |
n |
y |
y |
y |
Fraud |
s206-s211 |
Transaction |
n |
n |
y |
y |
Sale |
Statement |
Transaction |
? |
? |
? |
y |
Misfeasance |
Common |
Committing |
Y |
y |
y |
y |