Section 240(2)

Where a company enters into a transaction at an undervalue or gives a preference at a time mentioned in subsection (1)(a) or (b), that time is not a relevant time for the purposes of section 238 or 239 unless the company— but the requirements of this subsection are presumed to be satisfied, unless the contrary is shown, in relation to any transaction at an undervalue which is entered into by a company with a person who is connected with the company. is at that time unable to pay its debts within the meaning of section 123 in Chapter VI of Part IV, or becomes unable to pay its debts within the meaning of that section in consequence of the transaction or preference;

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Source: legislation.gov.uk · retrieved 2026-09-04 · Text as consolidated on 2026-07-16; changes after this date are not shown.