Section 239(4)

For the purposes of this section and section 241, a company gives a preference to a person if— that person is one of the company’s creditors or a surety or guarantor for any of the company’s debts or other liabilities, and the company does anything or suffers anything to be done which (in either case) has the effect of putting that person into a position which, in the event of the company going into insolvent liquidation, will be better than the position he would have been in if that thing had not been done.

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Source: legislation.gov.uk · retrieved 2026-09-04