The disposal of a company’s or individual’s assets or any other transaction which occurs at a significant reduction to true value within the 2 years prior to Liquidation or Administration, or within the 5 years prior to Bankruptcy.
Transactions at an undervalue can be challenged by a Liquidator, Administrator or Trustee In Bankruptcy. The outcome of any challenge can be the recovery of the assets disposed of or payment being recovered from either the beneficiary or (in the case of a company) the directors.