Transaction At Undervalue
Transactions at Undervalue occurs where, ownership of an asset, has been transferred for less than the market value.
If it is found the asset was sold below the proper value while the company was in liquidation, the Court can set aside the transaction. The new owners can be asked to restore the asset(s) in question to the company.
If you wish to sell any asset, then the asset should be independently valued. Thus make sure that the valuation has a going concern and forced sale values. You must keep careful records of such transactions. This ensures that the board meeting, minutes the transactions as being formally approved.
Personal Claim Against Directors
The law relating to personal claims (including the transactions at undervalue), against the Directors can be complex. With proper advice from Altion Law, many of those claims can be defeated. Failure to deal with such claims, could result in proceedings being issued by the Liquidators. Then possible Court Orders being made against you personally, ultimately leading to a loss of your personal property. The end result can perhaps even bankruptcy against you.
Our team can assist you if you have concerns about liability as a director. How it may impact your business or future business opportunities. If you would like to have a confidential discussion with a member of our team, please complete our Contact Us Form. We will call you back at a time that is suitable for you, or you can contact us directly on 01908 414990.
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