Taking the lead from the UK's Insolvency Act 1986, the Bankruptcy Act 1995 introduced into our bankruptcy laws novel concepts of transactions at an undervalue and extortionate credit transactions. At the same time, it revamped the law with regard to the giving of preferences. These new features are also made applicable to companies in winding up and judicial management. The following paper analyses the new provisions and the likely problems faced in their application. Particular attention is directed at the special difficulties which arise in their application to companies.