| Commentary

10.2 Transactions at an undervalue

| Commentary

10.2 Transactions at an undervalue

A company enters into a transaction with a person at an undervalue if:

  1. 10.2.1

        the company makes a gift to that person or otherwise enters into a transaction with that person on terms that provide for the company to receive no consideration; or

  2. 10.2.2

        the company enters into a transaction with that person for a consideration, the value of which, in money or money’s worth, is significantly less than the value, in money or money’s worth, of the consideration provided by the company1.

However, a transaction is not impeachable if the company entered into the transaction

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