Judgment against ‘pre-insolvency’ adviser for involvement in asset-stripping scheme

David O’Farrell and Rachel Zagorskis of Gadens look at a landmark judgment handed down against a third party adviser for devising an asset-stripping scheme and breaching the creditor-defeating disposition provisions of the Corporations Act, noting that despite only receiving a benefit of $431,000, the third party was ordered to pay damages of up to $7.3 million.

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