Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 588FB

  (1)   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.

  (2)   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.