Document ID: chunk:federal_register_of_legislation:C2025C00185:section:588fe:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 588FE (pt 1/4)
Character Range: 1986952–1989532

588FE  Voidable transactions
 (1) If a company is being wound up:
 (a) a transaction of the company may be voidable because of any one or more of subsections (2) to (6) if the transaction was entered into on or after 23 June 1993; and
 (b) a transaction of the company may be voidable because of subsection (6A) if the transaction was entered into on or after the commencement of the Corporations Amendment (Repayment of Directors' Bonuses) Act 2003; and
 (c) a transaction of the company may be voidable because of subsection (6B) if the transaction was entered into on or after the commencement of that subsection.
 (2) The transaction is voidable if:
 (a) it is an insolvent transaction of the company; and
 (b) it was entered into, or an act was done for the purpose of giving effect to it:
 (i) during the 6 months ending on the relation‑back day; or
 (ii) after that day but on or before the day when the winding up began.
 (2A) The transaction is voidable if:
 (a) the transaction is:
 (i) an uncommercial transaction of the company; or
 (ii) an unfair preference given by the company to a creditor of the company; or
 (iii) an unfair loan to the company; or
 (iv) an unreasonable director‑related transaction of the company; and
 (b) the company was under administration immediately before:
 (i) the company resolved by special resolution that it be wound up voluntarily; or
 (ii) the Court ordered that the company be wound up; and
 (c) the transaction was entered into, or an act was done for the purpose of giving effect to it, during the period beginning at the start of the relation‑back day and ending:
 (i) when the company made the special resolution that it be wound up voluntarily; or
 (ii) when the Court made the order that the company be wound up; and
 (d) the transaction, or the act done for the purpose of giving effect to it, was not entered into, or done, on behalf of the company by, or under the authority of, the administrator of the company.
 (2B) The transaction is voidable if:
 (a) the transaction is:
 (i) an uncommercial transaction of the company; or
 (ii) an unfair preference given by the company to a creditor of the company; or
 (iii) an unfair loan to the company; or
 (iv) an unreasonable director‑related transaction of the company; and
 (b) the company was subject to a deed of company arrangement immediately before:
 (i) the company resolved by special resolution that it be wound up voluntarily; or
 (ii) the Court ordered that the company be wound up; and
 (c) the transaction was entered into, or an act was done for the purpose of