A transaction that constitutes an unfair preference under s 588FA may also be an uncommercial transaction under s 588FB; the categories are not mutually exclusive. However, where a transaction has a commercial explanation (such as the discharge of a genuine, enforceable debt), the company's subjective purpose is not relevant to the objective assessment of commerciality under s 588FB. Under s 588FE(5), mere awareness that a transaction will adversely affect creditors is insufficient to establish the requisite purpose of defeating, delaying, or interfering with creditors' rights — the impact must have been one of the company's purposes. The Court was divided on the application of these principles to the facts, with the majority upholding the trial judge's findings and the President dissenting.
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