Transactions at Undervalue generally occurs where it is alleged that the ownership of an asset has been transferred for less than the market value.
The Court can set aside the transaction if it decides that the asset was sold below the proper value while the company was in liquidation. The new owners can be asked to restore the asset(s) in question to the company.
Top tip: If you wish to sell any asset then the asset should be independently valued and make sure that the valuation has a going concern and forced sale values. You must keep careful records of such transactions and ensure that the board meeting minutes the transactions as being formally approved by the board.
The law relating to personal claims against the Directors can be complex, but 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 and Court Orders being made against you personally, ultimately leading to a loss of your personal property and perhaps even bankruptcy against you.
Our team can assist you if you have concerns about liability as a director may impact your business or future business opportunities. If you would like to have a confidential discussion with a member of our team, if you 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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