THE CORPORATIONS LAW

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.