If you have been paid for goods or services, a liquidator may try to claw back that money on the basis that it is a voidable transaction.

Voidable transactions are payments or asset transfers that occur at a time when a company was insolvent and the director knew (or should have reasonably known) that the company was insolvent. Voidable transactions may include unfair loans, unfair preference payments, uncommercial transactions and unreasonable director-related transactions.

If a liquidator identified voidable transactions during the winding up of a company, the liquidator will seek to recover from the parties or creditors who benefits from the voidable transactions by issuing a letter of demand which can result in court proceedings.

If you have received a letter issued by a liquidator requesting that you pay back certain monies on the basis that they are voidable transactions, you should immediately contact our team of corporate insolvency specialists, who can help you understand:

  1. Whether the transaction is a voidable transaction;
  2. Your rights and obligations when being investigated regarding a voidable transaction; and
  3. Whether there is a defence available to directors and creditors of a company who have made or benefited from a voidable transaction.

Our corporate insolvency specialists work closely with liquidators to assist both in recovering and defending voidable transactions.

We appreciate that the winding up of a company can have a severe impact on the company, its directors, shareholders and creditors, which is why we approach all corporate insolvency matter in a client friendly, outcomes-based and timely manner.

As a matter of priority, you should:

  1. Review the date of the letter issued by the liquidator, as you must be quick to respond to prevent the liquidator from initiating court proceedings;
  2. Consider whether you have benefited from a voidable transaction;
  3. Asses the amount of the voidable transaction; and
  4. Contact our corporate insolvency specialists at Antunes Lawyers to discuss the options available to you so that we can resolve this issue.

Our team can assist you by:

  • Reviewing and analysing the relevant transaction and the facts and circumstances surrounding the transaction;
  • Determining whether the transaction is in fact a voidable transaction;
  • Providing you with comprehensive advice regarding the relevant transaction and the options available to you when it comes to voidable transactions;
  • Responding on your behalf to the liquidator;
  • Reaching a commercial resolution through informal and formal negotiation; and
  • Represent you in bringing or defending a claim in a court or tribunal.

Talk to one of our expert lawyers today.