In the matter of Pulse Interactive Pty Limited (in liquidation)

In the matter of Pulse Interactive Pty Limited, the company was in liquidation, and the liquidator sought to avoid certain transactions as voidable under the Corporations Act 2001. The transactions in question involved payments made to the sole director and shareholder of the company, as well as loans to the director that were subsequently written off. The liquidator argued that these transactions were unreasonable and should be avoided under section 588FDA(1)(c) of the Act.

The court was required to determine whether the transactions were reasonable, as required by the legislation. This involved assessing the circumstances of each transaction and whether they were conducted in accordance with the ordinary course of business and for the purpose of promoting the interests of the company. The court also had to consider whether the director acted honestly and whether the company's creditors were treated fairly.

After considering the evidence and submissions from both parties, the court found that the transactions were not reasonable. The payments to the director and shareholder were not justified by the company's financial position, and the writing off of the loans to the director was not in the best interests of the company. The court held that the liquidator was entitled to avoid the transactions under section 588FDA(1)(c) of the Act. As a result, the transactions were declared void, and the company's assets were restored to the estate for the benefit of its creditors.