Document ID: chunk:federal_register_of_legislation:C2025C00185:section:588fb
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 588FB
Character Range: 1980408–1981293

588FB  Meaning of uncommercial transaction
 (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.