• (a)the transaction is—
  • (i)a payment made by the company;
  • (ii)a conveyance, transfer or other disposition by the company of property of the company;
  • (iii)the issue of securities by the company; or
  • (iv)the incurring by the company of an obligation to make such a payment, disposition or issue;
• (b)the payment, disposition or issue is, or is to be, made to—
  • (i)a director of the company;
  • (ii)a spouse of a director of the company;
  • (iii)a related body corporate of a director of the company; or
  • (iv)a person on behalf of, or for the benefit of, a person mentioned in subparagraph (i), (ii) or (iii); and
• (c)it may be expected that a reasonable person in the company’s circumstances would not have entered into the transaction, having regard to—
  • (i)the benefits (if any) to the company of entering into the transaction;
  • (ii)the detriment to the company of entering into the transaction;
  • (iii)the respective benefits to other parties to the transaction of entering into it; and
  • (iv)any other relevant matter,

(in this Part called an “unreasonable director related transaction”).

• (a)the transaction is a payment, disposition or issue; and
• (b)the transaction is entered into for the purpose of meeting an obligation the company has incurred,

the test in subsection (1)(c) applies to the transaction taking into account the circumstances as they exist at the time when the transaction is entered into (rather than as they existed at the time when the obligation was incurred).

• (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 the court or a direction by an agency.