I. INTRODUCTION:
For decades, experts have recognized the need to reform Canada’s fraudulent conveyance and fraudulent preference laws (collectively, “reviewable transactions”), which have been described as “complex, antiquated and ambiguous, producing results that are often unpredictable and sometimes indefensible.” Broadly speaking, a fraudulent preference occurs when a debtor effects a transfer or assignment that unfairly prefers one or some of its creditors to the detriment of others, although the precise test varies, depending on the applicable legislation. In contrast, the broader concept of fraudulent conveyances does not require that the recipient of the transfer or assignment be a creditor of the debtor; common recipients are, eg, spouses or related parties.
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