From corrs.com.au: The Full Federal Court clarified the criteria for determining whether director-related transactions are voidable, emphasising the necessity of a commercial justification.

In the case involving CEG Securities and the Runtong Mortgage, the Court overturned the initial ruling, acknowledging that transactions within cooperative groups may be reasonable.

This decision highlights the importance for directors to substantiate the commercial rationale behind transactions, especially in challenging financial conditions.