TFG | Addressing the fundamental lack of available risk capital that can be applied quickly in a financially distressed business

Transaction
at an Undervalue

s238
IA 86

Transaction
creates a gift or undervalues consideration.

y

n

y

y

Preference

s239
IA 86

Transaction
puts one creditor in preferential position.

y

n

y

y

Extortionate
credit transactions

s244
IA 86

Transaction
requires grossly exorbitant payments or grossly contravenes ordinary
principles of fair dealing.

y

n

y

y

Avoidance
of floating charge

s245
IA 86

If
floating charge registered after new monies introduced, floating charge
could be voidable.

y

n

n

n

Transactions
defrauding creditors

s423
IA 86

Transaction
creates a gift or undervalues consideration and transaction puts assets
beyond reach of creditors and/or prejudices the interests of creditors.

y

n

y

y

Substantial
property transactions

s320
CA 85

Transactions
with directors (and connected parties) of greater than 10% of the company’s
net asset value and/or £50,000 require approval of a general meeting
of a company.

y

y

y

y

Fraudulent
trading

s213 IA
86

Trading
carried on with intent to defraud creditors.

y

y

y

y

Wrongful
trading

s214
IA 86

Directors
allow company to continue trading while (knowingly) insolvent.

n

y

y

y

Restriction
of re-use of business name

s216
IA 86

Transaction
facilitates new company re-using a restricted business name of liquidated
company.

n

y

y

y

Fraud
and deception

s206-s211
IA 86

Transaction
creates fraud and/or deception.

n

n

y

y

Sale
lang=EN-GB style=’font-family:Arial’> to a connected party

Statement
of Insolvency Practice 13 (SIP 13)

Transaction
funds a buy out of the business and assets to a connected party that
does not comply with SIP 13.

?

?

?

y

Misfeasance
and breach of duty

Common
law and s212 IA 86

Committing
an act of misfeasance or breach of fiduciary duty or a breach of some
other duty, including breach of the above listed sections.

Y

y

y

y