What are Reviewable Transactions?

The powers to challenge antecedent transactions exist to:

• Protect the principle of equality in asset distribution which holds that the available assets of a company in administration or liquidation must be shared equally among its unsecured creditors.
• Help the insolvency practitioner to achieve the best return to the creditors of the insolvent company as is possible in the circumstances.

The various ways in which a transaction may be challenged are prescribed by the Insolvency Act. They are:

• Disclaimer of onerous property.
• Transactions at an undervalue.
• Preferences.
• Extortionate credit transactions.
• Invalid floating charges.
• Transactions defrauding creditors.
• Contribution from past directors and shareholders.