(a)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
(b)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.
- Test: whether it was desire to make preference
- Desire is presumed if dealing with connected person