The Federal Court has recently delivered judgment in the case of Cooper as Liquidator of Runtong Investment and Development Pty Ltd (In Liq) v CEG Direct Securities Pty Ltd [2024] FCA 6, a case where a liquidator was successful in having a mortgage declared as an unreasonable director-related transaction.
Key Takeaways
- To declare that a transaction is an unreasonable director-related transaction and voidable, the Court must be satisfied that, on an objective test assessed at the time the transaction was entered into, a reasonable person in the company’s position would not have entered into the transaction.
- In assessing whether a payment or disposition of property occurred ‘for the benefit of’ a company director, it will be…
