When assessing whether a settlement deed constitutes an uncommercial transaction under s 588FB, the court must evaluate the commercial merits of the released claims from the perspective of a reasonable person in the company's circumstances, including the prospects of success, limitation defences, litigation costs, and benefits obtained. Company accounting records showing loan accounts constitute prima facie evidence under s 1305(1) but may be rebutted by evidence that the payments were not intended as loans, that the records were subject to disputed journal entry adjustments, and that no written loan agreement existed.
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