A payee defending a preference claim under s 588FG(2) must call all officers, employees or agents who were concerned in an executive capacity in the transaction, not merely a single officer with indirect knowledge. Failure to call available witnesses with direct knowledge of the transaction, without explanation, will be taken into account against the payee in assessing whether the onus of proof has been discharged. The 'subjective test' under s 588FG(2)(b)(i) has a hybrid character — the requirement of 'no reasonable grounds' is itself objective, so good faith alone does not satisfy the defence.
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