Section 265E of Companies (Winding Up and Miscellaneous Provisions) Ordinance states that
A company enters into a transaction with a person at an undervalue if—
(a) the company makes a gift to that person
(b) the company enters into a transaction with that person with no consideration
(c) the company enters into a transaction with that person for a consideration which is totally unreasonable less than the true market value of the transferred goods or assets.
In light of s.265D of the ordinance, the above transactions are voidable, unless the court believe that the company entered into the transaction in good faith and for the purpose of carrying on its business and at the time the company did so, there were reasonable grounds for believing that the transactions would benefit the company.
Relevant time for such kind of transactions is 5 years before the commencement date of winding up.