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Anyone occupying a key position with a business entity is wise to make provision for when that relationship ends. But what happens when severance payments begin . . . and then the company files for bankruptcy? A corporate principal who arranges a payday for her or himself when knowing that the company is, or will soon be, in financial distress, may face insider preference liability - even if no longer a corporate officer when the check is cashed.
September 07, 2000 at 12:00 AM
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The original version of this story was published on Law.Com
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