Voidable transactions (s588FE)
The types of transactions a liquidator can ask a court to set aside.
In plain English
Section 588FE of the Corporations Act sets out when certain transactions are 'voidable' — meaning a liquidator can apply to the court to unwind them. These include unfair preferences, uncommercial transactions, unfair loans, unreasonable director-related transactions and creditor-defeating dispositions.
Each category has its own time limits and tests. Whether a transaction is voidable depends heavily on the facts and the company's solvency at the time.
General information only — not legal or financial advice. Any figures or time limits are indicative and can change. Every situation is different; speak with us about yours.