CORPORATIONS ACT 2001

CHAPTER 5 - EXTERNAL ADMINISTRATION  

PART 5.7B - RECOVERING PROPERTY OR COMPENSATION FOR THE BENEFIT OF CREDITORS OF INSOLVENT COMPANY  

Division 2 - Voidable transactions  

SECTION 588FB   UNCOMMERCIAL TRANSACTIONS  

588FB(1)   [ What is uncommercial transaction]  

A transaction of a company is an uncommercial transaction of the company if, and only if, it may be expected that a reasonable person in the company's circumstances would not have entered into the transaction, having regard to:


(a) the benefits (if any) to the company of entering into the transaction; and


(b) the detriment to the company of entering into the transaction; and


(c) the respective benefits to other parties to the transaction of entering into it; and


(d) any other relevant matter.

588FB(2)   [ Irrelevance of other matters]  

A transaction may be an uncommercial transaction of a company because of subsection (1):


(a) whether or not a creditor of the company is a party to the transaction; and


(b) even if the transaction is given effect to, or is required to be given effect to, because of an order of an Australian court or a direction by an agency.


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