How Far Back Can a Liquidator Investigate Company Transactions?

A liquidator can investigate company transactions made before liquidation to check whether assets or money were unfairly transferred or certain creditors were favoured. The exact liquidator investigation period depends on the type of transaction. Preferences can generally be reviewed for up to six months before insolvency, or up to two years where connected parties are involved. Transactions at an undervalue may also be examined for up to two years. Directors should keep clear records of payments, asset sales and connected-party transactions. If questionable transactions are identified, the liquidator may seek repayment or recovery of assets for the benefit of creditors.

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