THE CORPORATIONS LAW

CCH Note: Part 13 of the Corporations Act 1989, inserted by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as follows:

PART 13 - THE CORPORATIONS LAW

THE CORPORATIONS LAW   82 

The Corporations Law is as follows:...

CHAPTER 5 - EXTERNAL ADMINISTRATION

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

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History

Pt 5.7B inserted by No 210 of 1992, s 111 (effective 23 June 1993).

CCH Note: See s 1383(7).

Division 2 - Voidable transactions

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History

Heading inserted by No 210 of 1992, s 111 (effective 23 June 1993).

SECTION 588FB   UNCOMMERCIAL TRANSACTIONS  

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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.

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History

S 588FB(1) inserted by No 210 of 1992, s 111 (effective 23 June 1993).

CCH Note: See s 1383(7).

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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History

S 588FB(2) inserted by No 210 of 1992, s 111 (effective 23 June 1993).

CCH Note: See s 1383(7).

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