A common law rule that an arrangement is void if:
The arrangement removes an asset from an insolvent entity that would otherwise be capable of realisation for the benefit of the entity's creditors.
The parties to the arrangement have the commercial objective of depriving the insolvent entity's creditors of the benefit of the asset in question.
The removal of the asset from the insolvent entity takes effect as a direct consequence of the entity's insolvency.
For more information, see Practice note, Reviewable transactions in corporate insolvency ( www.practicallaw.com/5-107-3979) .