Section 145Part 5 — Company Restructuring and Winding UpAmended
Voidable preference
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Amended by LG72/S3
Every conveyance or transfer of property, or charge thereon, and every payment obligation and judicial proceeding, made, incurred, taken or suffered by any company in favour of any creditor at a time when the company is unable to pay its debts within the meaning of section 93 with a view to giving such creditor a preference over the other creditors s hall be voidable upon the application of the company’s liquidator if made, incurred, taken or suffered within six months immediately preceding the commencement of a liquidation.
A payment made as aforesaid to a related party of the company shall be dee med to have been made with a view to giving such creditor a preference.
For the purposes of this section a creditor shall be treated as a “related party” if it has the ability to control the company or exercise significant influence over the company in making financial and operating decisions.