Buzz and Neil Are the Directors of Moon Pty Ltd

Multiple Choice

Buzz and Neil are the directors of Moon Pty Ltd. Moon Pty Ltd has been experiencing financial difficulty for some time. Indeed, the company received a report from its accountant stating that it was insolvent. Buzz and Neil decide to place the company into voluntary administration. Immediately prior to appointing the voluntary administrator, Buzz transferred a motor vehicle owned by the company into his own name. The company was subsequently place into liquidation. The liquidator is desirous of recovering the car or its value from Buzz. Which of the following is most accurate?

A) It is unlikely the liquidator would be able to recover the motor vehicle because directors have broad powers under section 198A of the Corporation Act and this would certainly include the power to transfer property owned by the company;
B) The liquidator may be able to recover the motor vehicle on the basis that the transfer constituted an avoidable unfair preference;
C) The liquidator may be able to recover the motor vehicle on the basis that the transfer constituted an avoidable uncommercial transaction;
D) The liquidator may be able to recover the motor vehicle on the basis that the transfer constituted an avoidable unreasonable director-related transaction;
E) All of the above;
F) (c) and (d) could both be correct.