I have been asked a few times over the past month to answer what the relation-back day (“RBD”) is for a number of different scenarios.
So I thought it would be good to give a quick refresher.
For those not familiar with the term, the ‘relation-back day’ is used to determine from what date a liquidator may refer back from in identifying possible voidable transaction claims.
For instance, if the company was to go into liquidation on 30 June 2018, then the RBD is 30 June 2018 and the liquidator can refer back 6 months to 31 December 2018 for an unrelated party unfair preference claim.
So here are the three most common scenarios:
(1) If the company goes into VA on 30 June 2018, and then creditors resolve to wind up the company on 3 August 2018, what is the RBD? The date of the VA.
(2) What if a creditor had filed wind-up proceedings with a court, before the VA appointment (and post 1 March 2017)? The RBD is the filing date.
(3) If the company only enters liquidation, then that date is the RBD.
Please note that liquidators (generally) have 3 years from the day after the RBD to commence voidable transaction proceedings (s588FF(3) Corps Act).
For more information, Caitlin and I have prepared a handy table for you: https://www.linkedin.com/pulse/relation-back-day-under-new-insolvency-law-reform-act-matthew-hudson/.