Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

CORPORATIONS ACT 2001 - SECT 588FB

Uncommercial transactions

             (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.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback